Pennon upbeat on Ofwat determinations, announces CFO change

11th Jul 2024 10:11

(Sharecast News) - Pennon Group shares were in the green on Thursday morning, as the company responded to the draft determinations from Ofwat for the K8 period, covering 2025 to 2030.

The FTSE 250 water utility said the regulator had highly rated the business plan of its South West Water operation, categorising it as outstanding and a "leading plan".

It covers Bournemouth, Bristol, Cornwall, Devon, and the Isles of Scilly.

In contrast, the business plan for Sutton and East Surrey Water, which Pennon acquired in January, was rated as "generally good".

Pennon said it would review the draft determinations and engage in a constructive dialogue with Ofwat before submitting representations by 28 August.

Final determinations were expected on 19 December.

In a separate announcement, Pennon Group has announced the resignation of chief financial officer Steve Buck, due to personal reasons.

Buck would be succeeded by Laura Flowerdew, the group's chief customer and digital officer and former chief financial officer at Bristol Water.

The transition was effective immediately, as part of Pennon's internal succession plan.

"Having had the opportunity to work closely with Laura over the past few years, she is perfectly placed to take on the role," said chief executive officer Susan Davy.

"Laura has a strong understanding of our business and brings with her significant leadership experience."

At 0850 BST, shares in Pennon Group were up 6.86% at 661.47p.

Reporting by Josh White for Sharecast.com.