Recycling and waste management company Viridor has revealed that 51 per cent of its profits come from recovering value from materials.
Its growth came from further progress in recycling, contracts and power generation, which offset a decline in landfill.
In the half yearly results for its parent Pennon Group, Viridor’s pre-tax profit was up 7 per cent to £30.6 million. Overall, Pennon Group, which also owns South West Water, saw its profits increase by 11.6 per cent to £107.4 million.
It was also revealed that Viridor increased its revenue per tonne from recycling by 16 per cent in the first half of the financial year to £125. Recycling volumes traded increased by 53,000 tonnes (6 per cent) to 913,000 tonnes with an improved mix.
Higher value recyclates increased by 122,000 tonnes mainly due to acquisitions while lower value recyclates fell 69,000 tonnes. It expects that revenue per tonne may ease back in the second half of the year due to world economic conditions, but the profit per tonne will remain appreciably higher in recycling than in landfill.
Pennon Group chairman Ken Harvey said: “I am pleased to report another successful half year for the Group. Viridor continues to grow and its long-term profit momentum is underpinned by its developing pipeline of major energy from waste and PPP projects. I am delighted to say that Pennon Group has invested a further £100 million in key infrastructure which supports development of the UK economy.”