Profits before tax have fallen by 36.6 per cent to £36.5 million at waste management company Viridor.
Headwinds in recycling and ongoing trend in decline of landfill affected its end of year results for the financial year that ended on 31 March, Viridor reported.
However, the company noted that it had a strong pipeline of energy projects including having reached financial close in contracts in Glasgow and South London.
Viridor owner Pennon Group chairman Ken Harvey said: “It has been a mixed year for Viridor. As previously flagged, trading in Viridor is significantly down on last year with declines in recycling and landfill more than outweighing continued growth in joint ventures.
“Viridor is continuing to respond aggressively to the near term challenges in recycling and landfill, which have necessitated site rationalisations, headcount reductions and exceptional charges in relation in asset impairments and provisions.
“One the positive side, Viridor has continued to make very strong progress on its growing PPP and EfW pipeline with major new contracts signed for Glasgow, South London and Peterborough; its appointment as preferred bidder for the South East Wales PPP and an enhancement of Dunbar’s planning permission to cover all of Scotland.
“These and similar projects are expected to drive the company’s long term profit growth.”