Utilities firm Pennon this morning announced that it had bought
Alongside the deal the
Shares in the firm rose 2.2 per cent as markets opened today.
The announcements came as the company reported a 14.2 per cent slide in underlying profit before tax for the full year.
Pennon said that it had recorded profit of £157m, down from £183m the year before. It said that this was in line with expectations.
The purchase of
That deal left
“We have ensured Pennon is well positioned for the future, reinvesting for growth, and retaining sufficient funds to drive further value.
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“The acquisition of
“This latest acquisition, building on a strong heritage and history, firmly cements Pennon as one of the leading
“While the group was net cash at year end, it will return to a net debt position once the special dividend, share buybacks and acquisition are completed.
“Overall, we think the portfolio changes make sense. Management has had significant flexibility following the sale, and the acquisition is a sensible one.
“It’s positive to see so much cash getting returned to shareholders – there’s always a temptation for management to keep cash in the business where possible, so a commitment to shareholder returns is always good to see.”
The post Pennon turns on the taps with £425m
© City AM, source