Pennon on track for an in-line half-year

Pennon, the water and waste group, said half year results remained "on track to deliver in line" for both businesses and it felt well placed for the rest of the year.

After agreeing initial terms over the cancellation of the Greater Manchester joint venture waste disposal PFI contract, Pennon said "progress is being made on the final agreements".

Pennon said last month that there will be a net one-off "non-material" impact to its income statement to take into account a reduction in the book value investment in joint ventures and an expected one-off gain on joint venture profit after tax.

The FTSE 250 company also said the energy recovery facility remains on schedule to enter final commissioning by the end of 2017 for Glasgow's Recycling and Renewable Energy Centre (GRREC).

On the outlook, Pennon said that it "continues to deliver a robust underlying financial performance for 2017/18", also highlighting its "clear strategy and strong balance sheet".

The tender offer launched for its 2013 6.75% hybrid bonds alongside the issuance of a new 2017 hybrid is expected to complete in October, with £286m redeemed, £14m called and the new 2017 £300m hybrid successfully completed on 22 September with an annual coupon rate of 2.875% and a first call date of 22 May 2020.

Half year results have been scheduled for 29 November.