SWW and Viridor owner hits performance targets
Water and waste company Pennon Group has hit its financial performance targets, and is expecting operational growth, it announced today (16 August).
According to the Group, which owns South West Water (SWW) and Viridor, since 31 March 2011 it has been performing in line with its management expectations, with SWW successfully completing its K4 regulatory contract for 2005 - 2010. This is the five-year budget of work approved and determined by Ofwat.
SWW also has a strong platform in place for continued success during the current regulatory period K5 2010-2015, Pennon said.
In April, SWW signed a £65M facility with the European Investment Bank (EIB), which represents the first stage of a £125M loan approved by the EIB for K5 funding.
Pennon also added that despite the dry spring, water restrictions in the region are "highly unlikely this year", and added there had been no water restrictions in the South West area since 1996 - unlike other areas of the country.
Meanwhile, Viridor continues to perform well and remains confident of delivering full year growth in profit before tax, reported Pennon.
Viridor acquired Storm Recycling, a small recycling company in Cheshire, for £1.7M in June, as part of its strategy to acquire firms in key strategic areas.
Last month, (July) an agreement was reached with Devon County Council for the diversion and treatment of 60,000 tonnes of Devon's residual municipal waste, which will see Viridor finance, construct, and operate a new energy-from-waste plant in Exeter.
Pennon Group also announced prospective plans to proceed with the financing, construction and operation of a energy-from-waste plant in Cardiff.
A spokesperson for the Group said: "The new project will provide a robust and deliverable bid for Prosiect Gwrydd (Project Green), a South Wales local authority consortium residual waste procurement."