PENNON GROUP PLC INTERIM MANAGEMENT STATEMENT
Overall financial performance at Pennon Group since 31 March 2012 remains in line with management expectations.
South West Water
South West Water is continuing its strong performance against the 2010-2015 regulatory contract and is well placed to outperform the assumptions contained therein. The company is working towards the next Price Review (PR14) and is actively engaged in the development of Ofwat's regulatory reform agenda. It has already rolled out its initial phases of customer engagement and work is under way to determine investment scenarios for the next period.
The company continues to deliver robust operational performance and high standards of customer service.
Viridor
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.
Since 1 April Viridor has continued to develop its pipeline of long-term PPP and EFW projects and has signed a 25 year contract with Glasgow City Council for the recycling and treatment of its residual waste and commenced construction of a 350,000 tonne Energy from Waste plant at Trident Park near Cardiff.
In July Viridor acquired JWT Holdings Limited, a waste collection and recycling business based in Greater Manchester, for £7.6m. The company provides excellent synergies with Viridor's existing activities in Manchester and across the North West.
Group
Since 1 April Pennon Group has:
- renewed a £35m Revolving Credit Facility (RCF)
- put in place £50m of new term loans and RCFs and
- drawn a US Private Placement of $100m 10 year funding at 4.5%.
The Company intends to announce its Half Year Results for 2012/13 on Thursday 29 November 2012.
