The company, which began a 450 million PFI contract with West Sussex council in April, said in its unaudited results report that its turnover was up just under 40% to £126.7 million – lagging slightly behind the company’s profit of 30.6% (before goodwill).
””The Board confirms its intention to continue its existing progressive policy of growing the Group dividend, at least up to 2009/10,”
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– Ken Harvey, chairman of Pennon Group
A significant sum of the turnover – £17 million came as part of the acquisition of Thames Waste Management. A further £5.3 million was from landfill tax, said Viridor.
Commenting on the figures, released as part of Viridor’s parent company Pennon Group’s financial results, chairman of Pennon Group Ken Harvey, said: “These excellent results demonstrate further profitable growth in the Group, affirming our strategy of focusing on our two key businesses, South West Water and Viridor Waste.
“The Board confirms its intention to continue its existing progressive policy of growing the Group dividend in real terms, at least up to 2009/10,” it added.
Council contracts
And, the company said it was fully aware that “As part of the government’s developing waste strategy, council integrated contracts will assume greater importance for the waste industry.”
Noting recent contracts, such as West Sussex, it said 25 million would be needed in the early years of the contract for improvements and upgrades, including a replacement MRF. A three year-year waste disposal contract with Poole council worth 10 million was also referenced, along with 2.3 million composting facilities to serve the London boroughs of Sutton, Croydon and Merton.
For the future, Viridor indicated that the two further 1.5 in-vessel composting plants, under construction in Devon and Suffolk, demonstrated its commitment to exploring new technologies in partnership with its customers.
Total landfill volumes increased by 20% to 2.3 tonnes (including Thames Waste Management) and Mr Harvey noted in the report that landfill gate fees rose by 5% – continuing to outstrip cost increases. Viridor currently has 80 million cubic metres of landfill capacity. And, its power generation output increased by 25% to 160,000 MWH.
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