13th Aug 2014 06:53
LONDON (Alliance News) - Environmental utility infrastructure company Pennon Group PLC said full year earnings before interest, taxation, depreciation and amortisation for its struggling waste business Viridor will exceed the previous year, despite the unit's earnings in the first half being affected by the decline of the landfill business.
In an interim management statement for the period since March 31, the company said it expects Viridor's earnings before interest, taxation, depreciation and amortisation in the second half to increase significantly with five energy-recovery facilities scheduled to come on stream.
The company, which also owns South West Water, said Viridor has been investing to improve the productivity of its assets and quality of its recyclate products. It said the Rochester plastics plant is expected to come on stream in the next month and the Scottish glass separation plant shortly thereafter.
In addition, the company said Viridor's Lakeside Energy Recovery Facilities joint venture with Grundon Waste Management is performing strongly and ahead of expectations.
On the water side of the business, Pennon said South West Water's 2014/15 profit will be impacted by its previously announced tariff freeze.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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