Profits dipped for Pennon this half year as inflationary pressures get the better of the water services group, it revealed yesterday. Underlying profit before tax slumped 75 per cent compared to 2021 levels, reflecting the near-term pressures on earnings from inflation-driven power pricing and financing costs. The Bristol Water owner said that power costs had jumped to around £49m from £24m a year ago. Pennon recently said it expects fullyear power costs to rise to around £106m. Boss Susan Davy called the results "resilient". Underlying revenue jumped nearly 10 per cent to £425.5m in the half year thanks to growth in non-household demand, as well as contract wins for the company. Shares slumped 2.45 per cent.

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