OFWAT has this morning published its draft determinations for the next five year cycle of pricing in the water industry. As the owners of South West Water and Sutton and East Surrey Water, Pennon’s share price has jumped off the back of news that its plans have been categorised as ‘leading. The market reaction, given the new government is going to be closely scrutinising this industry after years of neglect is perhaps surprising but shares were up more than 6% in early trade.
The AIM listed executive search firm published interim earnings news today, noting in line with others in the sector that a sluggish market is impacting fee income. However management add that as general economic confidence begins to return, they are confident that the target of delivering £12.5m of EBITDA can be achieved by next year. Curiously the shares saw very heavy selling in the latter part of yesterday’s trade, so today’s losses – which now only sit at just over 3% - look somewhat worse if Wednesday’s 20% sell off is also taken into account.
Also in the water industry. Severn Trent has a trading statement out this morning although they elected to leave reporting OFWAT’s draft determination to a later point in the day. As with South West Water, the regulator has given Severn Trent’s proposals the highest possible ranking (these were the only two firms to receive this plaudit) and the share price is reacting arguably more to this than the trading statement itself. Shares were up more than 3% in early trade.
Yesterday’s most read news on Investegate
