Pennon, the water and sewage services group, has announced underlying profits up 14 pct for the full year ended March 31.

Shares rose almost 4 pct after the news which saw South West Water profits up 8.7 pct to £132.5m and Viridor, waste management services, up 34.8 pct to £55.4m.

Final dividend was recommended as 15.6 p up 9.5 pct.

"Viridor revenue is up 19 pct to £626.5m mostly on acquisitions and an £89.7m contribution from the Greater Manchester subcontract" said Charles Stanley analyst Tina Cook after looking through the results.

"SW Water is well placed to achieve Ofwat's efficiency targets and outperform its financing cost assumptions..." she added, "We retain our Accumulate recommendation".