Pennon Group plc PNN

This water utility and waste management company owns some well known names such as South East Water Ltd and Viridor Ltd.

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The profitable Viridor was sold and dividend was cut. There is £1 billion for investment or return to shareholders. The share is heading for auto demotion from FT100. The upside and downside could be Hugh on current price of 910p.

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Share consolidation (2 for 3) cut off date today, with an additional special dividend.

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A healthy special dividend, do you expect the share price to drop after the consolidation ?

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Welcome @Dogtod The share price could drop, I think. It depends how the market reacts. I don’t know the company well or the reasoning behind the consolidation.

Hi,
Plz can u explain what is this? I bought 9 shares on 2 July and now I have only 6 shares. I am new in stocks.
It shows £23 loss

Thanks a lot

Welcome, @Mazahmed The company has carried out a share consolidation. So, for every 3 shares you will now have 2 new shares (so 6 is correct). The company announced that an additional ‘special dividend’ of £3.55 per share will be paid to shareholders.
Share value usually drops when there is a consolidation, and hopefully will recover.
You should have received two updates from Freetrade on the app about the change.

This is daylight robbery, how can it be legal. My holding was up 9/10% before this now it’s down 25.8% or £134.

Thanks a lot
Actually just want to ask that total value of my share was £98 and now this is £70 is this ok?

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Look on the investors page on the company website for news of the consolidation:
https://www.pennon-group.co.uk

A video explanation of share consolidation/reverse split:

My shares are down too, and a consolidation usually leads to an increase in share price. I’m not sure.

Same here in profit more than 10% this morning now almost 18% down with an loss of £110. Even with the special dividend I will be down. Average price paid this morning £8 now above £14 I never paid £14 per share. Don’t really understand this.

Does anyone know if the special dividend of £3.55 will be paid on the number of shares held before or after the consolidation ?
I had 50 shares and now I have 33 after this fiasco.

Read the consolidation documents and it should tell you.

I’m not sure why you think it is a fiasco - all they have done is consolidated share holdings. So the quantity of shares go down but the value per share increases plus they are paying shareholders a dividend on top ie they are returning value to shareholders. Seems the opposite of a fiasco to me!

The special dividend will be paid to shareholders registered at 6pm on Friday, 2nd July, 2021.
So I assume payment will be based on the number of shares held at that time.

My share value has decreased dramatically so your answer is wrong. Even once the special dividend is paid I am loosing.

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Thank you Ela :blush:

But that is because the market isn’t perfect - exactly the same often happens whenever dividends are paid ie the market slightly overreacts.

Of course long term the market might judge that money paid back to shareholders might have been better kept by Pennon for investments in which case the share price might drop further but that doesn’t make the process a fiasco (just uncertain).