Before goodwill, Viridor showed an operating profit of 22.7 million – an increase of 18.8% compared to last year's 19.1 million profit. Turnover rose by 20.2% to 183.1 million in the 2003/04 financial year.
Pennon said it experienced strong growth in profits from landfill and power generation. Operating profits from landfill and power generation increased by 23.2% and 46.1% respectively.
Total landfill disposal volumes increased by 6.3% to 3.675 million tonnes. Viridor also commenced its first waste management PFI in April 2004, in the form of a 25-year contract to run West Sussex's 11 civic amenity sites and recycling centres while developing new facilities.
Despite losing Shanks' landfill operations to private equity firm Terra Firma, the company said Viridor's acquisitions were performing in line with expectations.
Churngold Holdings Limited was acquired in June 2003 for 19.8 million. Thames Waste Management Limited was bought just after the year end for just under 30 million net and the group has made seven acquisitions for a total consideration of 104 million since 2001/02.
Disappointed
“Clearly, we are disappointed that our discussions with Shanks regarding the purchase of their UK landfill and landfill gas assets did not ultimately come to fruition,” Pennon chairman Ken Harvey said.
“However, as we have indicated on a number of occasions previously, we will not overpay for an acquisition. The price agreed between Shanks and Terra Firma [227m] would not have satisfied Pennon's investment criteria.”
The company said Shanks' landfill assets would have “tied in very well with Viridor's strategy”, and said its offer price for Shanks of 202.5 million satisfied its investment criteria. Pennon said that it had lost 9 million on the abortive negotiations for Shanks.
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