Pennon Group – A Busy Summer Ahead

0
Pennon Group – A Busy Summer Ahead
stevepb / Pixabay
  • Pennon Group plc (LON:PNN) (OTCMKTS:PEGRF) today released a trading update showing the group is on track to meet expectations for the current year to Mar 31st.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q4 2020 hedge fund letters, conferences and more

  • The group sees real returns on regulated equity doubling from their base level of 3.9%.
  • Customer bad debts caused by the pandemic have not worsened beyond earlier expectations.
  • So far, the group has used proceeds from the £3.7bn disposal of Viridor to reduce debts, leaving Pennon with significant financial firepower.

Pennon Group Fails To Clarify How It Will Reinvest Viridor Proceeds

Commenting on the statement, Steve Clayton manager of the HL Select UK Income Shares fund, which holds Pennon Shares said:

“Today’s statement is reassuring but necessarily fails to provide full clarity on how Pennon will go about reinvesting the Viridor proceeds. But it looks as though whilst Pennon have not signed a deal yet, they may be reaching for the pen. The group say that by their full year results on June 3rd they will either have announced a deal to acquire another UK water company, and Southern Water is the name most often linked here, or they will make a substantial return of capital to their investors.

Jim Chanos Unveils Lastest Short As Fund Manager Bets On Further Market Declines

Data 1639507577Jim Chanos has a new short target in his sights. Earlier this week, the hedge fund manager disclosed that he is betting against "legacy" data centers that face growing competition from the trio of technology giants, which have previously been their biggest customers. The fund manager, who is best known for his winning bet against Read More

In an uncertain world, Pennon looks attractive. Either the most effective management team in the sector will get a major new set of assets to work with, or there will be an upfront cash return. Either way, Pennon looks set to have a busy summer ahead.”

The shares were little changed in early trading.


About Hargreaves Lansdown

1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.

 

Updated on

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)www.valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article Rising Gas Prices Decried As “Racist, Classist, Sexist, Capitalist Evil”
Next article CleanSpark: Microgrid Solution With A Unique Proof Of Concept [Sponsored]

No posts to display