The owner of Viridor has said that the company continues to be affected by low recycling prices.
In its interim management statement, Pennon Group noted that while its overall financial performance remains in line with management expectations, conditions for Viridor were continuing to be tough.
Its management statement said: “As flagged at the preliminary results in May, Viridor is not immune to the difficult conditions in the world economy and trading has been significantly below the high level of last year’s first half with recyclate prices remaining under pressure.”
Last year, 51 per cent of Viridor’s profits came from recovering the value in waste.
The company also noted that since 1 April it had continued to develop its pipeline of long-term PPP and EfW projects including the signing of a 25-year recycling and residual waste contract with Glasgow City Council and commenced construction of a 350,000 tonnes per year EfW in Cardiff.
In July, Viridor acquired waste and recycling business JWT Holdings for £7.6 million. This will help the company with its existing activities in Manchester and the north west
Pennon also owns South West Water, which continues to perform well.