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Pennon dilutes profits to fix pipes

The owner of South West Water faces many political and infrastructure headwinds to its underlying profitability
November 29, 2023
  • Capital spending trumps profits
  • Political uncertainty hits investment case

It has been 30 years since there was a significant round of spending on water infrastructure, and it was clear from its interim results that Pennon (PNN) is having to increase capital expenditure hugely to keep on top of the depreciation of its physical infrastructure.

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