Pennon Group, which also owns South West Water, said its overall financial performance since March 31 this year has remained in line with what the company anticipated.
The revelation comes after Taunton-based Viridor saw a 36.6% fall in profits during 2012/13, which it attributed to a greater than expected fall in the value of recyclate across the twelve month period (see letsrecycle story).
At the time of posting the financial results, Pennon Group chairman Ken Harvey called it a mixed year for Viridor and insisted the company was taking aggressive action to face short-term challenges in recycling and landfill.
Progress
Mr Harveys comments were echoed in todays statement, which spoke of Viridors need for transition to offset the decline in landfill.
It said: As previously advised this will be a transitional year for Viridor and the company expects PBIT plus joint ventures in 2013/14 to be broadly similar to 2012/13. Cost reductions, combined with a modest recovery in recyclate revenues per tonne, are delivering an improvement in recycling margins per tonne compared to the second half of 2012/13, offsetting the trend decline in landfill.
Viridor continues to progress the construction of its pipeline of Energy from Waste (EfW) plants. The company expects its EfW plants to deliver significant EBITDA growth starting from 2014/15.
Pennon Group, which overall saw its annual pre-tax profits drop by 1.1% to 198.2 million in 2012/13, intends to release its Half Year Results for 2013/14 on November 28.
This week (August 5), Viridor announced the appointment of Ian McAulay as its new chief executive, after Colin Drummond OBE declared he would retire from the post in March (see letsrecycle story).
Mr McAulay will also become an executive director of the Pennon Group Board. He will take over both roles from September 9.
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