Pennon slashes dividend, launches £550m rights issue after record sewage fine

Pennon, owner of South West Water, cut its dividend and announced a £550m equity raise to fund £1bn infrastructure investment, days after a record £7.9m fine for sewage spills. The move signals financial strain and regulatory pressure on UK water utilities, potentially affecting sector valuations and investor sentiment. Uncertainty remains over the scale of future investment needs and regulatory penalties.