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Viridor optimistic despite Interserve worries

Viridor’s recycling business is on track for results in line with expectations, its parent group Pennon has said, but a question mark hangs over money due from the troubled Interserve construction firm.

In a trading update ahead of its 2018-19 results due on 30 May the company said: “Recyclate prices have remained largely stable over the period albeit with increasing customer quality requirements in line with recent trends.

“Viridor has continued with targeted investment in its recycling assets in order to improve output quality, including a focus on reliability centred maintenance and working with its customers to improve the quality of input materials.”

Pennon said it saw “a positive future for the recycling business”, in line with the Government’s resources and waste strategy.

Viridor has incinerator projects at Glasgow, Beddington and Dunbar which have all progressed to service commencement ahead of full operation, expected over the next 18 months.

Work at the Avonmouth incinerator (pictured) had progressed as expected with all major equipment parts and steelwork for the building in place.

Pennon is due £72m for rectification and completion costs at the Glasgow incinerator from Interserve Construction, which entered a pre-pack administration last week.

It said: “Given the recent announcements regarding Interserve plc entering into administration we are seeking further clarification regarding the financial position of Interserve Construction Limited the ongoing operating company with whom we contracted, which may change the level of provision to be announced with the full year 2018-19 results on 30 May 2019.

“We will continue to pursue recovery of all amounts due from the operating subsidiary Interserve Construction Limited and will take all the necessary legal and procedural steps to achieve this.”

 

 

 

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