I know that the mode for these threads tends to be smaller cap stocks but Pennon is looking so good at present I was interested to see if anyone else out there is holding or thinking of buying. The SP is on a fantastic run, it pays a nice fat dividend and even if the water regulators decision on prices was not what any of the water companies were looking for, Pennon is probably the least affected and the most favoured by analysts. Seems to me to be a winning combination!

StockMarketWire.com
Pennon Group said it is on track to meet management expectations for the 2015/16 year, with an expected H1 weighting. It added that new group initiatives underway are seen delivering future annualised cost savings of about GBP11m.

"Higher Group EBITDA expectations for 2015/16 are driven by the full year effect of the five new ERFs brought on-stream in 2014/15 and the contribution from Bournemouth Water," the company said.

"South West Water's revenue reset for K6 (2015-2020) has been mitigated by higher than expected customer demand in H1 and its ability to achieve outperformance on K6 Total Expenditure (Totex) commitments, as a result of efficiency initiatives," it said in a statement.

CEO Chris Loughlin said Viridor, South West Water and Bournemouth Water are all performing well and results for the full year 2015/16 are on course to meet management expectations.

"We see further opportunity to deliver improved efficiency and effectiveness driven by management changes which support our strategy of working more closely together across the Group," he said.

"We will employ the wide range of skills we have across Pennon to share best practice and deliver cost savings and growth opportunities. As we move towards a more consistent risk profile across Pennon, we are increasingly well-positioned to drive sustainable profit and dividend growth.

"We remain committed to growing dividends at +4% above RPI inflation through to 2020."

JP Morgan Cazenove today reaffirms its neutral investment rating on Pennon Group PLC (LON:PNN) and raised its price target to 850p (from 800p).

Half Year Results 2016/17
for the period ended 30 September 2016

Building Momentum, Driving Growth

Chris Loughlin, Pennon Chief Executive said:
"Pennon has delivered a good performance in the first half of 2016/17 across its water and waste businesses. South West Water continues to achieve a sector-leading RORE([1]) at 11.7% as it outperforms for its customers, and is expecting momentum and delivery to continue. Viridor is on track to contribute the targeted c.£100 million of EBITDA from its ERF([2]) portfolio this year while self-help measures are driving improved EBITDA margins in recycling.

We are continuing to invest for growth. Following a review, we have taken the decision to commit to a £252 million ERF at Avonmouth, expanding our portfolio to twelve plants. This is a significant investment in the UK's environmental infrastructure and will add to the already expected significant increase in EBITDA from our ERF portfolio once all facilities are fully operational. In water, we are announcing a new retail venture for business customers with South Staffs/Cambridge Water.

We remain focused on driving value through efficiency. South West Water has delivered £80 million of Totex savings since the beginning of K6 (2015-2020), while our recently completed Shared Services Review will increase total Group cost savings from the c.£11 million previously announced to c.£17 million p.a from 2019.

We believe Pennon is well positioned for the future and is on track to meet management expectations for the full year 2016/17. Our performance underpins our sector-leading dividend policy of 4% growth per annum above RPI inflation to 2020."

MORE.....

Credit Suisse today downgrades its investment rating on Pennon Group PLC (LON:PNN) to underperform (from neutral) and cut its price target to 680p (from 800p).

Today's trading statement is well received, rising chart as well.

So much for the Credit Suisse analysis.

Trading Update from Monday http://www.moneyam.com/action/news/showArticle?id=5679028

StockMarketWire.com
Pennon Group booked a higher first-half profit after restructuring costs fell and revenue rose.

The environmental infrastructure group said pre-tax profit rose 26.8% to £129.8m, while revenue rose 5.6% to £723.9m.

Underlying pre-tax profit, which strips out one-off items such as restructure charges and changes in the value of derivatives, rose by a more modest 2.3% to £131.1m.

The company declared an interim dividend of 11.97p, up 7.9%.

"Pennon has delivered robust performance in the first half across both water and waste activities," chief executive Chris Loughlin said.

"Our priority continues to be to provide an outstanding level of service to our customers and communities, while offering a sector-leading dividend policy for our shareholders."

Deutsche Bank today downgrades its investment rating on Pennon Group PLC (LON:PNN) to hold (from buy) and cut its price target to 840p (from 870p).

Goldman Sachs today initiates coverage of Pennon Group PLC (LON:PNN) with a neutral investment rating and price target of 749p

StockMarketWire.com
Environmental infrastructure firm Pennon Group said its underlying operating performance was in line with expectations as it neared the conclusion of the financial year.

Capital expenditure was expected to peak in the current financial year through March, reflecting investment profiles at waste management arm Viridor's energy recovery facilities.

'With our clear strategy of focusing on the UK water and waste market supported by a strong balance sheet, Pennon is well-placed to continue to deliver for customers, communities and shareholders.' the company said.

StockMarketWire.com
Water utility and waste management group Pennon said annual profit rose by a quarter, owing to regulatory tariff increases, higher customer demand and cost savings.

Pre-tax profit rose 25% to £262.9m, as revenue rose 2.9% to £1.39bn.

On an underlying basis, pre-tax profit rose 3.5% to £258.8m.

The company declared a full-year dividend of 38.59p per share, up 7.3% on year.

'Pennon has delivered a strong performance this year across water and waste,' chief executive Chris Loughlin said.

The company said it continued to expect UK residual waste market dynamics to be favourable, with demand for Energy Recovery Facilities exceeding capacity into the long term

Half year results https://www.moneyam.com/action/news/showArticle?id=6221883

Deutsche Bank today downgrades its investment rating on Pennon Group PLC (LON:PNN) to hold (from buy) and raised its price target to 790p (from 780p).

I'm surprised it's not falling given IRV news.