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Pennon Group PLC on Tuesday said its financial performance has remained ‘resilient’ as it noted that the integration of its Bristol Water Holdings UK Ltd acquisition is progressing well.
The Exeter-based water utility firm said it is maintaining a robust financial and operational performance, despite a challenging macroeconomic environment.
Pennon said that it remains on track to deliver a solid performance across the business in line with management expectations for the year ahead.
It stated that its water resources remain in a ‘robust’ position with reservoir storage at 93%.
The company added that the integration of Bristol Water, a Bristol-based water supplier, is going well. It is anticipated to complete over the next 24 months. Pennon identified synergies of £20 million per year by 2024/25 through service improvements.
It expects the profile of these efficiencies to ramp up to deliver £50 million over K7 - the regulatory period from 2020 to 2025 - with one-off, non-underlying integration costs of £10 million anticipated.
Pennon completed the GB425 million acquisition of Bristol Water in March after receiving regulatory approval from the UK Competitions & Markets Authority.
Shares were trading 0.8% lower at 1,044.00 pence each in London on Tuesday morning.
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