Acquisitions Help Boost End of Year Revenues at Viridor

Viridor's Lakeside Waste to Energy joint venture 26 May 2011 UK based waste management company, Viridor - a part of the Pennon Group has published its financial results for the year, showing a 13.6% increase in revenue to £712 million. Some £40.6 million of the company's revenue came through 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. Existing business increased by £44.9 million, including an increase in landfill tax collected of £14.0 million. Viridor's earnings before interest, tax, depreciation and amortisation (EBITDA) rose £1.7 million to £116.5 million. Profit before interest and tax (PBIT) decreased by £1.2 million to £71.6 million. The company's joint venture projects, Lakeside and Viridor Laing Greater Manchester, contributed £11.0 million, compared to £4.2 million for 2009/10. This comprised interest receivable on shareholder loans of £6.7 million and share of profit after tax of £4.3 million. Including profits earned in Viridor's contracts segment, Lakeside's total profit contribution in the year was approaching £9 million from the company's investment of circa £17.5 million (average during the year). PBIT plus joint ventures taking account of the above increased 7.3% to £82.6 million. Profit before tax at £62.9 million was up 14.2% on the previous year. Capital expenditure for the year was £73.7 million, including £38.3m on Runcorn II. In addition, £12.5 million was invested in joint ventures. Outlook Viridor says that it has successfully transformed itself over the last ten years from predominantly a landfill operator to being one of the country's largest recycling, renewable energy and waste management companies. Recycling is now the company's largest single segment and Viridor says that this will be key to profit growth in the next two years. In addition, waste to energy PPP projects are starting to contribute to the bottom line. Sign up for Waste Management World's Free E-Mail Newsletters