Pennon Group (PNN) Trading Update summary

Acquisition and integration

• CMA cleared the acquisition of Sutton and East Surrey (SES) Group; integration underway with 10% of efficiency target already achieved.

• Integration plans for SES and Bristol are progressing, with Bristol on track to deliver £20m annual efficiency savings.

Regulatory and investment updates

• Ofwat awarded 'outstanding' status to South West Water and SES draft determinations, with a 30% RCV growth floor and £75m accelerated storm overflow capex for 2024/25.

• Launched a £2.5bn EMTN programme and issued a £400m public bond, maintaining a strong investment grade credit rating.

Operational performance

• Resolved the cryptosporidium water quality incident in Devon, incurring £16m in non-underlying costs.

• Completed new water abstraction and treatment works at Rialton, raising Cornwall's water resource levels to a 12-year high.

• Delivered 71 WaterFit storm overflow schemes and achieved strong bathing beach performance.