Pennon increases loss provisions

FTSE 250 environmental infrastructure group Pennon (LON:PNN) has seen its share price drop by 2.09% to 768.40p (as of 13:35 GMT) after the company said it expected to take a hit of roughly £16 million due to the collapse of Interserve Construction. The company had £72 million in gross receivables related to Interserve in its first half results and had previously recognised an £8 million provision in its accounts.

Management said that they were seeking further clarification regarding the current status of Interserve Construction’s finances via the ongoing operating company and will continue to pursue all owed amounts via legal and procedural methods.