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Bringing Water to Life

Supporting the lives of people and the places they love for generations to come

Annual Report and Accounts 2025

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Pennon is one of the leading businesses in the UK water sector

Pennon is an environmental infrastructure group focused on the UK water sector.

Our team of c4,000 brilliant colleagues work around the clock to deliver over 1 billion litres of water to 4.3 million people every day.

Our core businesses

Our purpose and strategy brought to life...

View our vision and purpose

    Operational Highlights

    Strong water resources position, with over

    90% full

    1.19

    Water quality (CRI score) for SWB region.

    2024 saw our best performance achieved during the five-year regulatory period SES Top performer for water quality

    100%

    Supply Demand Balance Index

    with industry-leading water quality metrics

    4%

    Spills reduction

    despite wettest hydrological year on record

    c.40%

    Industry-leading internal sewer flooding

    reduction in network pollution incidents over K7

    20%

    Less bathing beach releases during the bathing season since 2020

    2*

    Our provisional score of

    for the EPA rating for 2024 calendar year

    Financial highlights

    £1,047.8m

    Revenue

    (2023/24: £907.8m)

    £652.5m

    Group capital investment^

    (2023/24: £649.5m)

    £335.6m

    Underlying EBITDA^

    (2023/24: 338.3m)

    61.8%

    Water Group Gearing^

    (2023/24: 64.4%)

    £(35.1)m

    Underlying loss before tax^

    (2023/24: £16.8m underlying profit before tax) Impacted by lower customer demand, higher depreciation and interest from capital investment

    6.0%

    Return on regulated equity

    (2023/24: 7.6%)

    £72.7m

    Loss before tax

    (2023/24: £9.1m loss before tax)One off costs relating to restructure and water quality incident

    31.57 pence

    Underlying EBITDA^

    (2023/24 restated)

    ^ Measures with this symbol are defined in the Alternative Performance
    Measure (APMs) as outlined on pages 248 to 251.

    Our leadership statements

    View our leadership team
    David Sproul Chair

    There has never been a more important time to make a positive contribution to the sector and society. What Pennon does for customer, communities and the environment really matters.

    Susan Davy Chief Executive Officer

    We have ended this year in a resilient position, giving us a strong platform for delivery

    Laura Flowerdew Group Chief Financial Officer

    This financial year has been a year of transition as we close out K7 and prepare for K8 - ensuring a resilient balance sheet for the growth ahead

    Our approach to ESG ensures everything we do supports our commitment to provide environmental stewardship and to support our customers and local communities. As a responsible employer, we remain focused on employee development alongside a robust health, safety and wellbeing programme. Our activities are underpinned by a strong governance framework that upholds our core values within the organisation and throughout our supply chain

    We are driven by our strategic focus of leading on UK environmental infrastructure, delivering for the benefit of our customers, communities, and the environment. Further detail can be found in our TCFD and TNFD report.

    Supporting the lives of people

    Our purpose is to support our people and communities to increase our social value. As a business serving 4.3m of the population and c.4,000 employees we go to great lengths to protect one of our most precious resources.

    Who they are

    Nearly 4,000 people work across the Group and brands, in corporate and operational roles. They are the heart of our business, delivering essential water and wastewater services and ensuring clean, safe drinking water for our customers 24/7.

    Key highlights
    Strong focus on PR24

    Engaging all our colleagues and ensuring we are all focused on delivering for our customers, today and in the future

    Launching a new Pennon Podcast

    Listening to our colleagues and regularly updating our internal communications

    We delivered 25,000

    training days across the group for our colleagues

    Viva Engage, our internal communications platform

    now used by over 2,000 employees

    Who they are

    Our businesses supply water and wastewater services to 4.3 million residents across the South West and Sutton and East Surrey regions. We also support an additional 10 million people who visit the South West each year – making our services vital to both residents and tourists. Nationally, we serve 210,000 business customers across England through our non household businesses.

    Key highlights
    We hosted
    24

    roadshows across Devon and Cornwall, engaging with over 1,000 customers

    Through the WaterShare+ scheme
    80,000

    of our customers are now shareholders

    Who they are

    We deliver services that are crucial to daily life, which means we are not just a utility provider, we’re part of the fabric of local communities. Our teams live and work where we serve, so we’re closely connected to the people and places that make each community unique. We work with community groups to ensure people have a voice in shaping services that matter to them.

    Key highlights
    Our education programme delivered
    212

    lessons on the water cycle, sewer misuse, plastic pollution and water efficiency to

    3,000
    children and young people

    Our Awesome Water programme has reached

    34,000
    people across the South West

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