Viridor’s parent group Pennon has warned of difficult trading at the waste management firm.
In an interim management statement the firm said trading was “significantly below” the first half of 2011 because of global economic conditions. The statement added: “Viridor is not immune to the difficult conditions in the world economy”.
Recyclate prices, which in some cases have fallen to levels not seen since before the 2008 crash, were also blamed for Viridor’s performance.
However the company said it had continued to develop its pipeline of long-term PPP and EfW projects including signing a 25-year residual waste contract with Glasgow City Council and beginning construction of a 350,000 tonnes EfW plant in Cardiff.
In July Viridor acquired Manchester waste firm JWT Holdings for £7.6m.
Pennon Group said since 1 April it had:
- renewed a £35m revolving credit facility (RCF)
- put in place £50m of new term loans and RCFs and
- drawn a US private placement of $100m funding over 10 years at 4.5%
The group reported a strong performance by its South West Water division helping bring Pennon’s performance in line with expectations.
At the end of May Pennon reported an 8.4% fall in pre-tax profits at Viridor to £57.6m in the year to the end of March 2012. Group profits were up 6.4% to £200.5m