Pennon Says Performance On Track To Meet Management Expectations For 2015/16

(RTTNews) - Pennon Group Plc. (PNN.L) Monday said group performance is on track to meet management expectations for 2015/16.

In a trading update, the company said continued good performance across the group underpins the 2015/16 delivery of its sector- leading dividend policy of 4 percent year-on-year growth above RPI inflation.

In South West Water, as expected, revenues for 2015/16 will be impacted by the reduction in base allowed returns as part of the 2014 final determination.

Bournemouth Water's results are in line with expectations. The Competition and Markets Authority referral is progressing as expected, the company added.

In Viridor, a recent Government change to remove the climate change levy exemption for renewables led to the end of Levy Exemption Certificates, which Viridor had been receiving for both its landfill gas and ERF businesses. This has had a modest impact on Viridor's earnings.

The firm plans to announce its half year results for 2015/16 on November 27.