Pennon Group

PNN · Main Market · Utilities · mcap £1,701m · 333.4p 7 open situations →

Pennon supplies water and wastewater services in the South West of England through South West Water, and water in Surrey and Sussex through SES Water. It earns regulated returns set by Ofwat and is investing heavily in water resources, treatment works and storm overflows.

Target	Promise	Said	Status
2024
31 Mar 2024	Double base RORE returns cumulatively over K7 to 2023/24	2 Oct 2023	⏱ Overdue – no update
	“we continue to anticipate a cumulative doubling of base returns on regulated equity (RORE)” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
2024/25	South Cornwall desalination plant operational	25 Mar 2024	⏱ Overdue – no update
	“our desalination plant in South Cornwall is on track to be operational in 2024/25” Status so far The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
2025
31 Mar 2025	SES Water acquisition earnings accretive in 2024/25	10 Jan 2024	⏱ Overdue – no update
	“Expected to be earnings accretive from the first year of full ownership (2024/25)” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
31 Mar 2025	£20m annualised Bristol Water synergies by 2024/25	21 May 2024	⏱ Overdue – no update
	“Bristol entering the final phase and on track to deliver the £20m per annum efficiency savings previously targeted for 2024/25” Also stated 26 Sep 2024 How it developed 21 May 2024 Said “on track to meet the £20 million targeted by 2024/25” 26 Sep 2024 Said “Bristol entering the final phase and on track to deliver the £20m per annum efficiency savings previously targeted for 2024/25” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
31 Mar 2025	Obtain two public credit ratings	21 May 2024	⏱ Overdue – no update
	“Targeting two public credit ratings by March 2025 - expect strong investment grade ratings” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
31 Mar 2025	Achieve c.£86m annualised efficiencies into K8 by end 2024/25	26 Sep 2024	⏱ Overdue – no update
	“improvements in processes and operational effectiveness delivered and in progress of c.£55m of annualised efficiencies in H1 2024/25 against the targeted c.£86m annualised run rate for K8” Also stated 27 Nov 2024 How it developed 26 Sep 2024 Said “target to achieve c.£86m savings into K8” 27 Nov 2024 Said “improvements in processes and operational effectiveness delivered and in progress of c.£55m of annualised efficiencies in H1 2024/25 against the targeted...” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
31 Mar 2025	Achieve/retain 2 Star EPA rating for 2024 and 2024/25	26 Sep 2024	⏱ Overdue – no update
	“Targeted to retain EPA 2* status for 2024/25” Also stated 31 Mar 2025 How it developed 26 Sep 2024 Said “we are targeting a 2 Star EPA rating for 2024” 31 Mar 2025 Said “Targeted to retain EPA 2* status for 2024/25” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
2025	Deliver 2025 commitments, including EPA 4 star status by 2025	2 Oct 2023	✗ Missed
	“Road map to achieve EPA 4 star in 2025” Also stated 25 Mar 2024 · 21 May 2024 How it developed 2 Oct 2023 Said “we expect to see further improvements to performance and remain confident in achieving our 2025 commitments” 25 Mar 2024 Said “overall 4 star EPA status is now reprofiled for 2025” 21 May 2024 Said “Road map to achieve EPA 4 star in 2025” 10 Jun 2026 ✗ Missed “Disappointingly, our provisional assessment for the 2025 EPA rating is 1* as pollution incidents, although improved, were still above target” Result Targets later reset to retaining 2 star; Mar 2026 update cited net ODI penalties, and FY26 results cited £42m of operational penalties. “Disappointingly, our provisional assessment for the 2025 EPA rating is 1* as pollution incidents, although improved, were still above target”10 Jun 2026 · Final Results
2025	Increase water resources by 30% in Devon and 45% in Cornwall by 2025	29 Nov 2023	◐ Partly kept
	“on track to increase resource availability in Devon and Cornwall in K7 by 30% and 45%, respectively” Also stated 25 Mar 2024 · 21 May 2024 How it developed 29 Nov 2023 Said “on track to increase resource availability in Devon and Cornwall in K7 by 30% and 45%, respectively” 25 Mar 2024 Said “We are on track to reach our target of a 45% increase in Cornwall water resources by 2025” 21 May 2024 ◐ Partly “We have delivered on our 2025 target for Devon, with 30% greater resource availability and are on track for 45% in Cornwall, with 30% delivered to date.” 21 May 2024 Said “on track for 45% in Cornwall, with 30% delivered to date” 31 Mar 2025 ◐ Partly “Strong water resources position at over 90% with industry leading water quality expected” Status so far Mar 2025 said water resources position over 90%; no card confirms the final 30%/45% outcomes. “We have delivered on our 2025 target for Devon, with 30% greater resource availability and are on track for 45% in Cornwall, with 30% delivered to date.”21 May 2024 · Final Results “Strong water resources position at over 90% with industry leading water quality expected”31 Mar 2025 · Trading Statement
2025	Secure 50% renewable energy generation by 2025	29 Nov 2023	⏱ Overdue – no update
	“on track to have secured 50% renewable energy generation by 2025, five years ahead of our initial target” Status so far The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
2025-06	Dunfermline/Fife solar site grid connection and energisation (first energisation end 2024/25, Fife June 2025)	25 Mar 2024	⏱ Overdue – no update
	“grid connection in expected in late 2024” How it developed 25 Mar 2024 Said “grid connection in expected in late 2024” 11 Dec 2024 Said “first energisation expected at the end of 2024/25” 3 Jun 2025 Said “Energisation of Pennon Power solar facility at Fife” Status so far The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
2026
31 Mar 2026	Return to profitability in 2025/26 with underlying EBITDA up c.60%	3 Jun 2025	✓ Kept
	“The resulting loss before tax on both an underlying and statutory basis reflects a point of inflection into K8 with an expected return to profitability in 2025/26” Also stated 27 Nov 2025 How it developed 3 Jun 2025 Said “The resulting loss before tax on both an underlying and statutory basis reflects a point of inflection into K8 with an expected return to profitability in 2025/26” 27 Nov 2025 Said “we are on track to deliver a c.60% increase in underlying EBITDA year on year” 10 Jun 2026 ✓ Kept “Return to profitability in 2025/26, with statutory profit before tax of £114.4 million (2024/25: loss of £72.7 million)” Result FY26 underlying EBITDA £519.2m vs £335.6m (about 55% up, slightly below c.60%); underlying profit before tax £135.1m. “Return to profitability in 2025/26, with statutory profit before tax of £114.4 million (2024/25: loss of £72.7 million)”10 Jun 2026 · Final Results “Underlying EBITDA^ increasing by 55% compared with the prior year to £519.2 million.”10 Jun 2026 · Final Results
31 Mar 2026	Net neutral ODI position in Wastewater Services in 2025/26	27 Nov 2025	✗ Missed
	“we are targeting to achieve a net neutral Outcome Delivery Incentive (ODI) position in Wastewater Services this year” How it developed 27 Nov 2025 Said “we are targeting to achieve a net neutral Outcome Delivery Incentive (ODI) position in Wastewater Services this year” 10 Jun 2026 ✗ Missed “Exceptional storms and sustained rainfall coupled with a step up in targets and penalty rates from the beginning of the new regulatory cycle created...” Result Mar 2026 expected net ODI penalties; FY26 results cited £42m of operational penalties. “Exceptional storms and sustained rainfall coupled with a step up in targets and penalty rates from the beginning of the new regulatory cycle created operational pressures across water and wastewater for 2025/26, resulting in a net operational ODI penalty of c.£42.0 million”10 Jun 2026 · Final Results
24 Sep 2026	Submit representations to Ofwat by 24 September 2026	13 Aug 2026	⏱ Overdue – no update
	“we look forward to a constructive dialogue with Ofwat ahead of responding with our representations by the due date of 24 September 2026” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
30 Sep 2026	Conclude DWI court process in summer 2026	10 Mar 2026	⏱ Overdue – no update
	“we expect it to conclude during Summer 2026” Result The deadline has passed; no announcement since says whether it was met. We check again as new reports come in.
30 Sep 2026	Provide strategic update before end September 2026	10 Jun 2026	✓ Kept
	“Strategic update to follow before the end of September 2026” How it developed 10 Jun 2026 Said “Strategic update to follow before the end of September 2026” 16 Sep 2026 ✓ Kept “Pennon Group Plc announces that a Strategic Update will be hosted by CEO, Keith Haslett and CFO, Laura Flowerdew on 7th October 2026 at 9:00am” 7 Oct 2026 ✓ Kept “A presentation hosted by Keith Haslett, Chief Executive Officer, and Laura Flowerdew, Chief Financial Officer, will commence at 9:00 a.m. today, 7 October...” Result Strategic update presented 7 October 2026, a week after the stated deadline. “Pennon Group Plc announces that a Strategic Update will be hosted by CEO, Keith Haslett and CFO, Laura Flowerdew on 7th October 2026 at 9:00am”16 Sep 2026 · Strategic Update “A presentation hosted by Keith Haslett, Chief Executive Officer, and Laura Flowerdew, Chief Financial Officer, will commence at 9:00 a.m. today, 7 October 2026, followed by a live Q&A session.”7 Oct 2026 · Strategic Update
Today · 22 Oct 2026
31 Dec 2026	Conclude Environment Agency prosecutions during 2026	10 Mar 2026	… In progress
	“we expect to conclude these during 2026” Status so far Not yet due.
2027
end FY27	All four Pennon Power sites operational, generating 40% of group consumption	26 Sep 2025	… In progress
	“when all four sites are operational by the end of FY27, Pennon Power's renewable energy portfolio will generate the equivalent of 40% of the Group's total consumption” Also stated 10 Mar 2026 How it developed 26 Sep 2025 Said “When all four sites are operational by the end of FY27, Pennon Power's renewable energy portfolio will generate the equivalent of 40% of the Group's total...” 10 Mar 2026 Said “when all four sites are operational by the end of FY27, Pennon Power's renewable energy portfolio will generate the equivalent of 40% of the Group's total...” Status so far Not yet due.
2030
31 Mar 2030	Keep water business gearing within 55-65% (60-65% target stated Jan 2025)	2 Oct 2023	… In progress
	“Pennon maintaining its long-term gearing policy of 55-65% for the regulated water businesses, consistent with an investment grade credit profile” Also stated 10 Jan 2024 · 10 Jan 2024 · 29 Jan 2025 How it developed 2 Oct 2023 Said “we are confident that our gearing will remain within our well-established range of 55-65%” 10 Jan 2024 Said “remain within our well-established water business gearing range of 55-65%” 10 Jan 2024 Said “the pro forma leverage and capital structure for the enlarged Group following the Acquisition remains consistent with Pennon's well-established water...” 29 Jan 2025 Said “Pennon maintaining its long-term gearing policy of 55-65% for the regulated water businesses, consistent with an investment grade credit profile” Status so far Not yet due.
31 Mar 2030	Deliver record c.£3.2bn K8 capital investment to 2030	29 Jan 2025	✗ Missed · target changed
	“capital expenditure increasing from an expected K7 (2020-2025) outturn of c.£1.9bn, to a record c.£3.2bn” Also stated 3 Jun 2025 How it developed 29 Jan 2025 Said “capital expenditure increasing from an expected K7 (2020-2025) outturn of c.£1.9bn, to a record c.£3.2bn” 3 Jun 2025 Said “In targeting 7% RORE - we will be delivering for all - and sharing that performance with customers through WaterShare” Result Oct 2026 plan raised AMP8 investment to about £3.6bn, funded by a £550m rights issue. 7 Oct 2026 · Strategic Update
31 Mar 2030	Deliver c.7% RORE, including in FY26	29 Jan 2025	✗ Missed
	“Targeting K8 7% Return on Regulated Equity, underpinned by efficient financing for FY 2025/26” Also stated 26 Sep 2025 · 27 Nov 2025 · 10 Mar 2026 How it developed 29 Jan 2025 Said “targeting c.7% Return on Regulated Equity (RORE), within Ofwat's expected RORE ranges” 26 Sep 2025 Said “We are on track to deliver our 7% RORE target, supported in-year by efficient financing costs” 27 Nov 2025 Said “Targeting K8 7% Return on Regulated Equity, underpinned by efficient financing for FY 2025/26” 10 Mar 2026 Said “7% RORE targeted over K8, with financing and capex efficiencies for FY26 partially offset by net ODI penalties” 10 Jun 2026 ✗ Missed “2025/26 Return on Regulated Equity (RoRE) of 6.7%, with outperformance on financing and totex partly offset by ODI penalties.” Result FY26 RoRE was 6.7%, below 7%, with £42m operational penalties; Mar 2026 profitability at lower end of expectations. “2025/26 Return on Regulated Equity (RoRE) of 6.7%, with outperformance on financing and totex partly offset by ODI penalties.”10 Jun 2026 · Final Results
31 Mar 2030	Retain Baa1 credit rating for water companies over K8	29 Jan 2025	… In progress
	“targeting retaining a strong investment grade credit rating of Baa1 for the water companies over the K8 period” Status so far Not yet due.
31 Mar 2030	Grow rebased dividend per share by CPIH annually to March 2030	29 Jan 2025	✗ Missed · target changed
	“rebased dividend per share growing in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31 March 2025 and each financial year thereafter to 31 March 2030” Also stated 29 Jan 2025 How it developed 29 Jan 2025 Said “rebased dividend per share growing in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31 March 2025 and each...” 29 Jan 2025 Said “Pennon intends to grow this rebased dividend per share, in absolute terms, by CPIH inflation from and in respect of the current financial year ending 31...” Result Oct 2026 rebased dividend to about £125m for FY26/27, a cut of about 30% per share, then CPIH growth from that level. 7 Oct 2026 · Strategic Update
31 Mar 2030	Grow regulated capital value over 40% across AMP8 (earlier 34%)	10 Jun 2026	✗ Missed · target changed
	“total investment programme is expected to deliver RCV growth of over 40% across AMP8” Also stated 7 Oct 2026 · 7 Oct 2026 How it developed 10 Jun 2026 Said “creating a 34% growth in RCV over AMP8” 7 Oct 2026 ↻ Changed / dropped “The total investment programme is expected to deliver RCV growth of over 40% across AMP8, a step up from the 34% set out at the start of the AMP” 7 Oct 2026 Said “total investment programme is expected to deliver RCV growth of over 40% across AMP8” 7 Oct 2026 ↻ Changed / dropped “This is expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8, a step up from the 34% set out at the start of the AMP.” 7 Oct 2026 Said “expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8” Result Target raised from 34% to over 40% in Oct 2026 alongside higher investment. “The total investment programme is expected to deliver RCV growth of over 40% across AMP8, a step up from the 34% set out at the start of the AMP”7 Oct 2026 · Strategic Update “This is expected to deliver growth in the RCV of its regulated water businesses of over 40% across AMP8, a step up from the 34% set out at the start of the AMP.”7 Oct 2026 · Rights Issue
2030	Deliver £4.5bn totex plan for 2025-30	29 Nov 2023	✗ Missed · target changed
	“£4.5 billion totex plan for 2025-30, assuming 12% efficiency” Result Final Determination gave £4.5bn SWW totex, but capex plan rose to £3.2bn then about £3.6bn with a £550m rights issue. 7 Oct 2026 · Strategic Update
2030	Enforcement package: £20m spill investment, £2m sewer misuse fund, £2m Nature Recovery Fund	10 Jul 2025	… In progress
	“£20m accelerating investment from K9 to reduce the number of spills at environmentally sensitive locations or within a focused community” Status so far Not yet due.