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Pennon Share Price

Pennon Group plc reported a solid financial performance in its 2020/21 financial year, which ended on March 31, 2021. The company’s revenue increased by 4.6% to £1.56 billion, and its profit after tax rose by 3.8% to £188.4 million. The company attributed this growth to strong performances by its water and wastewater services division and improved recycling revenues from its waste management division.

Pennon Share Price

Pennon Group plc is a British utility and waste management company listed on the London Stock Exchange under the ticker symbol “PNN”. The company operates through its subsidiaries, including South West Water, Viridor, and Pennon Water Services. As of this post, Pennon’s Share Price is at 859.50 GBX.

Pennon Group plc had a market capitalisation of around £4.8 billion and a share price of approximately £10.70.

Pennon Share Price

Brief Background of Pennon Share Price

Pennon Group plc has a history dating back to the early 20th century. The company was initially formed in 1926 as the Devon Waste Reclamation Company, which was focused on collecting and processing waste in the southwest region of England.

Over time, the company expanded its operations, and in 1989, it acquired South West Water, a regional water company serving Devon, Cornwall, and parts of Somerset and Dorset. The acquisition transformed the company into a significant player in the UK’s water industry.

In 1993, the company changed its name to Pennon Group plc, reflecting its focus on providing integrated water and waste management services. In 2000, the company expanded its waste management operations by acquiring Viridor, a leading waste management company in the UK.

In recent years, Pennon Group has continued to grow its business and diversify its operations. In 2016, the company acquired Bournemouth Water, a regional water company serving parts of Dorset and Hampshire. In 2019, Pennon Group sold Viridor to KKR, a global investment firm, for £4.2 billion, as part of its strategy to focus on its core water business.

Today, Pennon Group is one of the largest utility companies in the UK, providing water and wastewater services to around 1.7 million customers in the southwest region and operating a network of waste management facilities nationwide.

Advantages of Investing in Pennon Share Price

Pennon Group plc is a major player in the UK’s water industry, serving around 1.7 million customers in the country’s southwest region. The company also operates a network of waste management facilities across the UK. Its established position in these industries could provide a stable base for long-term growth.

Pennon Share Price has diversified its operations by offering water and waste management services. This diversification could buffer against economic downturns that affect one sector more than the other.

As a water and waste management company, Pennon Share Price is well-positioned to benefit from the growing trend towards sustainable practices. The company has committed to reducing carbon emissions and increasing the amount of renewable energy it generates.

As of September 2021, Pennon Group plc had a market capitalisation of around £4.8 billion. The company has a history of delivering consistent financial performance, with solid revenue and earnings growth over the past several years.

Main Competitors of Pennon Group

  1. United Utilities. United Utilities is a British water company that provides water and wastewater services to around seven million customers in the North West of England. It is one of the largest water companies in the UK.
  2. Severn Trent. Severn Trent is another British water company that serves over 4.4 million customers in the Midlands and mid-Wales regions of the UK. It is one of the largest water companies in the UK.
  3. Thames Water. Thames Water is the UK’s most significant water and wastewater services company, serving around 15 million customers in London and the Thames Valley region.
  4. Biffa. Biffa is a UK-based waste management company that provides waste collection, recycling, and disposal services.
  5. Veolia. Veolia is a global waste management company that provides water, waste management, and energy services. It operates in over 40 countries, including the UK.

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Conclusion

In terms of sustainability, Pennon Group plc has been progressing towards reducing carbon emissions. The company reported a 37% reduction in its carbon footprint in 2020/21 compared to its 2016/17 baseline. The company has also been investing in renewable energy, with plans to build a 200 MW solar farm and a 100 MW battery storage facility in the UK.

FAQ

FAQ: Pennon Share Price

What is the historic performance of Pennon Group plc?

Revenue: Pennon Group plc's revenue has steadily increased over the past five years, from £1.32 billion in the 2016/17 financial year to £1.56 billion in the 2020/21 financial year.

Operating profit: The company's operating profit has grown over the past five years, from £321 million in 2016/17 to £401 million in 2020/21.

Net profit: Pennon Group plc's net profit has fluctuated over the past five years but has generally trended upwards. The company reported a net profit of £195 million in 2016/17, which increased to £188.4 million in 2020/21.

Dividends: The company has consistently paid out dividends to its shareholders over the past five years, with a dividend yield averaging around 3.5%.

Does Pennon Group plc pay dividends to its stockholders?

Yes, Pennon Group plc pays dividends to its stockholders. The company has a long history of paying dividends and has consistently increased its dividend payout over the past few years.

Who is the target investors of Pennon Group plc?

As a publicly traded company, Pennon Group plc's shares are available for purchase by any individual or institution that meets the relevant eligibility criteria set by the stock exchange on which the company is listed.

In general, the target investors for Pennon Group plc are likely to be those looking for a relatively stable and long-term investment and interested in companies operating in the water and waste management industries. In addition, given the company's history of paying dividends, investors seeking income from their investments may also be interested in Pennon Group plc.

Pennon Group plc's shares are listed on the London Stock Exchange. They are included in the FTSE 100 index, which comprises the 100 largest companies listed on the London Stock Exchange by market capitalisation. As such, the company may also interest institutional investors, such as pension funds, mutual funds, and other asset managers.

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Simon Williams
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