The only way I can explain this as of right now is that Pennon has reduced all our holdings by 1/3 and giving us back £3.55 per share to make up for the loss.
The special dividend is not so special 
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The share price is at the “mercy” of the market but the intention of Pennon is clearly explained on their website ie purchase of Bristol Water and return of value via share consolidation and dividends to shareholders plus extra authority to buy back more shares (which should return more value to shareholders).
If you bought recently ie after this had all been announced then the market will have priced in any gain so when the consolidation and dividend is paid there has been a reduction in price.
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Consolidation/Reverse Split activity tend to cause volatility in the market. As I understand it, if there has been a big sell off of shares today as a reaction then this will likely cause a drop in the share price.
As explained by @Mike7 you have just become an owner of Bristol Water too, which may come at a price but hopefully will lead to better returns for the future.
According to FT/Yahoo Finance the share price is actually up on the day.
You all miss understood me. I have read the documents and understand, what I can’t understand is that I was in profit more than 10% now I am down 18% loss £110.The loss is much bigger as I also had a big profit. Held these shares for 1 year or more. Do you hold Pennon share and if yes do you have the same problem? The special dividend will be just the compensation for the loss. There is no dividend they just called it that. We will see, I might be wrong, have a look at the graph on the app 44%up from £3.65 from this morning.
Share price £11.20 on Friday.
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There may be some miscalculation on the part of FT. They seem to have share price wrong on another stock today. Suggest we see how things look tomorrow.
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There are less interest to own the share after the special divi and the weighting of the share is lower on the index. Index funds need to sell to adjust. It is better to sell on profits before any divi and buy back on weakness.
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Consensus forecasts updated
The consensus outlook for 2022 has been updated.
- 2022 revenue forecast increased from UK£712.8m to UK£729.9m.
- EPS estimate fell from UK£0.65 to UK£0.58 per share.
- Net income forecast to grow 22% next year vs 13% growth forecast for Water Utilities industry in the United Kingdom.
- Consensus price target down from UK£17.23 to UK£13.41.
- Share price fell 31% to UK£11.87 over the past week.
~SimplyWallSt
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Hi,
Can u plz tell me why I gone in loss after consolidation.
I bought the 9 shares at £11.32/share.
But now it shows £17.05/share and investment loss of £30.
Means I only get £70 if I want to sell my 6 shares
Plz help me to understand
Thanks
6 x 17 is £102! Not £70. Plus you will get a dividend.
But I think you have the figures the wrong way round. The shares were trading at £17 but now £12.18. The difference is partly because of the special dividend being paid out and partly the market value of the share price dropping as a result of the consolidation.
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Thanks, I know it shoul be 102, but my portfolio shows on £70 with a loss of £30.
I email freetrade the reply is
(Unfortunately, due to a system limitation on our said, we are unable to assign value (book costs) to dividend payments which is why your gain/loss figures for Pennon Group (and any other UK stocks that go through a split/consolidation) are inaccurate. We hope to overcome this system limitation but for now, the in-app gain/losses will remain the same - my sincere apologies for any inconvenience caused as a result of this.)
They are running this big platform and don’t want to satisfy their customers 
Dear Ela,
The same thing happens to me, loss after consolidation, and no is is explaining the reason.
Even I email freetrade and the answer was
(Unfortunately, due to a system limitation on our said, we’re unable to assign value (book costs) to dividend payments which is why your gain/loss figures for Pennon Group (and any other UK stocks that go through a split/consolidation) are inaccurate. We hope to overcome this system limitation but for now, the in-app gain/losses will remain the same - my sincere apologies for any inconvenience caused as a result of this)
Plz I u have any update let me know
Thanks
@Mike7 All this talk about £17 a share I have been following Pennon for the past Year or more and at no point has it been £17 I certainly have never bought at this price. The current price is the highest from what I can see on FT but you are right Yahoo finance graphs look different. It’s a mystery to me. Once we get the special div. back to square one I guess, this is how I have worked it out.
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Hi Mazahmed
Had the same message. I know it’s confusing, especially all this talk about price of £17 doesn’t make sense but I worked it out as I had 64 shares now I have 42 shares price drop about £250 loss but once we get the special dividend at £3.55 per share at close last Friday I should receive £227.2 plus money for the 1 missing share as the split was 1/3 that should give me the rough value as of close on Friday. The bummer is that if the shares are not in the ISA you might have to pay TAX depending on your circumstances. I am not an expert just trying to make sense of the situation. Welcome to the weird world of the stock market. Hopefully Pennon will reach £17 then we are good. 
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It looks like some data providers have re-based the historical share prices to reflect the share consolidation.
But the crucial part for shareholders is the price you bought at and the size of your stakeholding. You should be able to work that out for yourself. Even your FT history should show you the quantities you bought and at what price.
The share consolidation (as has been explained several times) has done 3 things:
- given you 2 shares for every 3 you held pre-consolidation
- a special dividend per share
- caused the market to adjust the price to reflect the impacts of the consolidation (and that will take some time for the market to stabilise on what is a “fair” price for the impact)
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Hi,
Is there any update on when those of us who had 1 Pennon share before the split will receive our cash entitlement? Share disappeared from my portfolio last week and not heard anything since.
Thanks.
I checked in with support at the tail end of last week, said they didn’t have a specific date but would get it done ASAP.
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Did they already give the dividend?
I think it’s due to be paid on friday.
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Should be paid now, £8.03 for one share
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I’m wondering if it’s worth investing a bit in Pennon Group right now. What do you think?