Pennon Group Plc (PNN)

Profile

https://www.pennon-group.co.uk

Pennon Group Plc is a British water utility company headquartered in Exeter, England, and a constituent of the FTSE 250 Index. Formed on 12 December 1989 as the holding company for the privatized South West Water under the UK Water Act 1989, it provides essential water supply, wastewater collection, and treatment services primarily through its main subsidiary, South West Water, which accounts for 83% of group profits and serves around 1.7 million customers in Devon, Cornwall, and parts of Dorset and Somerset. The company has expanded its footprint via strategic acquisitions, including Bournemouth Water in 2016 for £100 million, Bristol Water in 2021 for £814 million, and SES Water in 2024 for £380 million, growing its customer base to approximately 3.5 million and elevating its Regulatory Asset Base beyond £5 billion by FY2024/25. Following the 2020 sale of its waste management arm Viridor to KKR for £4.2 billion, Pennon Group Plc refocused on regulated water infrastructure, emphasizing resilience, net zero goals, storm overflow reductions, and bathing water quality improvements under Ofwat's PR24 framework for 2025–2030. With assets around £5.7 billion, it plays a vital role in the UK's environmental infrastructure, addressing seasonal tourism demands and stringent EU-derived standards in coastal regions.