LONDON (dpa-AFX) - Pennon Group plc (PNN.L), an environmental infrastructure group, Monday said it expects Group underlying financial performance for fiscal 2019 in line with expectations.
In its trading update ahead of full-year results, the company noted that South West Water continues to deliver strong operational and financial performance, with a focus on efficiency and customer service. RORE is on track for consistent continued outperformance for 2019 with an expected cumulative rate of 11.8%.
Revenue from increased customer demand over the summer is expected to broadly offset the operational cost of delivery.
South West Water's business plan for 2020-2025 has qualified for a 'fast track' process, the only water company to have achieved this status for two consecutive price reviews.
Further, in line with management expectations, the existing assets in ERF portfolio have continued to perform ahead of base case scenario, underpinning the full year results forecast.
The company said it remains confident that the recycling business is on track for full year results in line with expectations.
The company also said it remains confident in the UK residual waste sector fundamentals, with further capacity essential to meet longer term demand.
Pennon intends to announce its full year results for 2018/19 on May 30.
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