Viridor improving profits by sharing risk on price of recycled materials


The latest full year results from Viridor owner Pennon Group have shown that its waste management operation is looking to share the risk in the price of recycled goods.

In its results for its financial year 2015/16, Pennon said that recyclate prices were lower than in the previous financial year, but had stabilised. However, prices still remained under pressure.


Through its Input, Throughput and Output Optimisation programme it was targeting improvements in source material quality to gain a higher price.

This include renegotiating contracts where required to enhance value and quality inputs. On new contracts, better gate fees have been reflecting more sharing of recyclate price risk with customers and secure a better specified quality of inputs.

These measures have helped Viridor see marginal increases in gate fees compared to the previous year.

Overall, Pennon Group which also owns South West Water, saw profits before tax rise to £211.3 million from £210.7 million the year before.   

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