Tough times continue for Pennon's Viridor unit

published 17 August 2012

Pennon Group said trading since the end of March has been in line with management expectations, with the water operations going well and the waste management arm battling tough market conditions.

South West Water is continuing its strong performance against the 2010-2015 regulatory contract and is well placed to outperform the assumptions contained therein, Pennon said. In preparation for the next industry price review South West Water has already rolled out its initial phases of customer engagement and work is under way to determine investment scenarios for the next period.

Things are a bit tougher in Viridor, the waste management unit, where trading has been significantly below the high level of the first half of the previous fiscal year with recyclate prices remaining under pressure.