Pennon’s Viridor is doing well

City A.M. Reporter
WATER and waste company Pennon said it expects higher full-year profits at its waste management unit, Viridor, on the back of strong trading.

Waste management, recycling and renewable energy company Viridor accounts for a third of group profits and Pennon had said in May the unit would boost growth, as projects to generate energy from waste gain acceptance in the UK.

The company said yesterday it had decided to proceed with the financing, construction and operation of a 350,000 tonne energy from waste plant in Cardiff.

Pennon, which also owns South West Water, added trading for the whole group since 31 March had been in line with its expectations.

“South West Water has a solid platform in place for continued success during the current regulatory period,” the company said, adding that water restrictions in the region were “highly unlikely” despite the dry spring.

In May, Pennon said it expects Viridor to continue boosting profits, as UK projects to generate energy from waste start to gain acceptance.

Over the past year, the company has got planning permission for four energy from waste facilities previously stuck in planning.