Pennon Group Launches £550 Million Rights Issue for Water Investment

Pennon Group announced a plan to raise approximately £550 million through a fully underwritten rights issue to fund expanded investment in its regulated water businesses. The company is increasing its capital investment for the AMP8 period to approximately £3.6 billion, an increase of £1 billion over its original plan.

To support this investment overhaul and ensure sustainable payments, the company is reducing its total dividend for the 2026/2027 financial year to approximately £125 million, down from £138 million the previous year. This change represents an implied underlying reduction in dividend per share of about 30%.

Pennon Group is currently seeking approval from the Water Services Regulation Authority for cost change processes to recognize this investment through regulatory capital value growth. A final decision on the current request is expected by December 15.