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Viridor profits rise as it eyes tighter landfill market

Increased profitability at Viridor Waste was reported today by its parent company the Pennon Group plc. And, the company also said it hopes to benefit from landfill shortages in some parts of the country where it operates.

Half-yearly results for Pennon, which includes South West Water, saw turnover down 2% to 220m and profit before tax down 3% to 40m. Viridor Waste did rather better in April to September this with a turnover of 62.6m, an increase of 10m over the comparable half year in 2000.

Included in the turnover was 19.6m in respect of Landfill Tax (2000 – 16.8m). Viridor says that the increase in turnover reflects increases in both landfill volumes and gate fees.

Operating profit was 8.2m (2000 – 7m) with an operating margin, excluding landfill tax, of 18,.5%. The increased profitability arose principally, says the company, in the landfill and collection divisions.

And, Viridor Waste is upbeat about its future prospects. Pennon chairman Ken Harvey said the waste operation is well –placed to achieve further growth. He said that a factor in this is Viridor's recent acquisitions which were Manchester-based Lavelle & Sons for 3.6m and the Suffolk Waste Disposal Company Ltd.

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