Profits rise at Pennon despite slowdown at waste business
BRITAIN’S Pennon reported a six per cent rise in full-year profit yesterday as strength at its water business helped offset weakness at the company’s waste management unit, Viridor.
Viridor, which was seen as Pennon’s growth engine, struggled in the second-half of the year, hurt by lower prices for waste paper or recovered metals – recyclate.
“Viridor’s financial performance will continue to be impacted by trends in recycling and landfill,” Pennon said. “We are cautious about the prospect for a recovery in recyclate prices in the near-term.”
Full-year pre-tax profit rose to £200.5m. Profit at Pennon’s water and sewerage business, South West Water, rose 10 per cent to £141.5m, while Viridor, which provides recycling and waste collection services, saw profit slip eight per cent to £57.6m.
However, the company said its growing pipeline of projects could help more than double Viridor’s earnings before income tax, depreciation and amortisation within the next five years.