Viridor earnings grow despite recycling price slowdown


Earnings at recycling and waste management company Viridor are expected to exceed last year, according to its owner Pennon Group.

This is despite a fall in the value from recycling than it previously expected.

In a pre-close trading statement, Pennon Group said that earnings from energy recovery facilities at Viridor are expected to more than offset declines in landfill and recycling.

The statement said: “Recycling revenues are being adversely affected by current market conditions with lower recycling EBITDA in 2014/15 than expected. The recent fall in commodity prices has led to a decline in recyclate prices and UK power prices, which could impact profitability next year should these market conditions continue.”

Pennon Group also said that Viridor has now “reached a point of inflexion in its ongoing transformation from being predominantly a landfill business to becoming a leading renewable energy and recycling provider”.