- Water utility Pennon said it would update investors in November about its plans for its cash pile, with acquisitions and returns to shareholder both still on the company's radar.

Pennon recently sold its Viridor waste management business for £4.2 billion, banking net cash proceeds of £3.7 billion.

'We continue to review the most efficient and effective method of returning value to shareholders, alongside considering earnings accretive market opportunities,' the company said.

'Any potential investment will be assessed in terms of value creation and the impact on shareholder returns, income and growth, as well as the impact on customers and other stakeholders.'

'Any use of capital to pursue an investment opportunity will be compared with the alternative of returning that capital to shareholders, ensuring our strong focus on financial discipline is maintained.'

In a trading update, Pennon also said it was on track to deliver 'resilient' financial results for the year through 30 September in line with its expectations.

The impact of the Covid-19 crisis to date was still broadly line with initial assumptions for a net revenue impact in 2020/21 of £10 million.

The company said overall revenue has fallen, with an increase in household revenue offset by lower non-household revenue.

It added that its water services business continued to work to minimise bad debt risk through the implementation of cash collection initiatives.

'Whilst cash collections across the group to date have remained robust, we continue to closely monitor changes in revenue and payment patterns in response to new national and regional restrictions and changes in government support for businesses and individuals,' Pennon said.

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