Viridor's growth focus is on energy-from-waste, as global recyclate price-falls impact trading
Waste management company Viridor is continuing to battle against a global fall in prices for materials recovered through the recycling process, its parent company has said.
In its interim trading statement, Pennon Group said that Taunton-based Viridor had been trading "significantly below the level of last year," with recyclate prices falling back from their 2011 peak.
Pennon said while recyclate revenues per tonne recovered "a little" from their lows of October and November, they remained significantly below first half 2012/13 levels and the company remained "cautious" about the prospects for further recovery.
Looking ahead, it said with the ongoing weakness in recyclate prices and the continuing reduction in landfill volumes, it expects profits before interest and tax for Viridor and its joint ventures to be broadly similar to the current year, in 2013/14.
Pennon said Viridor is continuing to respond "aggressively" to the ongoing near-term challenges and that its energy from waste projects are expected to deliver "significant growth" from 2014/15 onwards.
Meanwhile, it added that Exeter-based South West Water continued to deliver a "robust operational performance" and "high standards of customer service" despite the extreme flooding of recent months.