Pennon Group PLC on Tuesday said it expects to deliver results in line with expectations for the financial year ending March 31.

The water utility pointed the successful completion of the merger between South West Water and Bristol Water on February 1 as a factor driving operational and service improvements in the group.

It noted that, through reinvesting in South West Water, it is now on track to deliver double base returns on regulated equity in financial 2023.

The Exeter-based company said it has been accelerating its environmental capital expenditure, reporting a record 40% increase year-on-year.

Pennon said it is picking up the pace on its plan to achieve 50% self-generation by 2030, as part of its broader net zero commitment. It explained it is in ‘advanced’ discussions with a range of counterparties offering large scale solar development opportunities across the UK. These opportunities would be initially funded through the company’s capital allocation of around £160 million, it added.

Pennon’s full-year results will be released on June 1.

Shares in Pennon were down 0.3% at 860.23 pence on Tuesday morning in London.

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