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You are here: CIWM  >  Publications  >  Latest News  >  Viridors Chief Executive Confirms Yearly Profit Growth

Viridors Chief Executive Confirms Yearly Profit Growth

25 May 2011

Financial results for Pennon Group for 2010-11 published this week show a successful year for Viridor with almost half its profits coming from recycling and EfW

Chief Executive of Viridor, Colin Drummond today thanked staff for their hard work in continuing to transform the business, moving to ever greater levels of recycling and renewable energy production, despite challenging market conditions.

He said: "I'd like to thank all my Viridor colleagues for their continued efforts to deliver our essential recycling, renewable power and waste management services. We have continued to show strong growth in demanding market conditions. The fact that nearly half our profits now come from recycling and recovering energy from waste shows that the business continues to transform itself in line with the UK's recycling and resource efficiency agenda."

Report Highlights:

Finacial

Revenue was up 13.6 percent to £712m, of which the acquisitions of the Reconomy recycling companies, Pearsons, Adapt Recycling, Swinnerton and Martock in 2010/11, and the full-year effect of the 2009/10 acquisitions of London Recycling and International Recycling, accounted for £40.6m. Existing business increased by £44.9m (including an increase in landfill tax collected of £14m).

Recycling

Overall recycling revenues per tonne in 2010/11 were very strong with recyclate prices back to the peak levels seen previously, and more than offsetting lower gate fees and higher associated collection costs. Recycling volumes traded increased by 0.3m tonnes (22 percent) to 1.7m tonnes, with an improved mix. Volumes from existing businesses grew by 0.2m tonnes or 13 percent. Acquisitions accounted for the remaining growth of 0.1m tonnes. Profits per tonne are appreciably higher in recycling than from landfill. In net terms, Viridor is therefore benefitting from the move towards recycling away from landfill in the UK.

Renewable Energy

Energy can be recovered from waste in two ways, either via gas (notably landfill gas and potentially anaerobic digestion) and combustion (in "Energy from Waste" plants and similar facilities, some of which may be a part of a Combined Heat and Power (CHP) scheme). Energy recovery from waste currently accounts for around 25 percent of total UK renewable energy (20 percent from landfill gas and 5 percent from thermal treatment). This 25 percent equates to 1.5 percent of total UK electricity production (from both renewable and non-renewable sources).

For the full report visit www.pennon-group.co.uk