The group has today (9 February) published a trading update. The board considers that the group will deliver trading performance “consistent with its expectations and prior guidance”.
Pennon Group chief executive Chris Loughlin said: “Our water and waste businesses are performing well and we are on track to deliver a good set of results for the full year 2016/17.
“South West Water is on course to remain at a sector-leading 11.7 per cent and Viridor is on track to contribute the targeted c.£100 million of EBITDA from its portfolio of energy recovery facilities.
“With our sector-leading dividend policy, our growth profile and our strong balance sheet, Pennon is well-placed to continue to deliver for customers, communities and shareholders.”
As announced at the half year, Glasgow’s recycling and renewable energy centre is being completed by an experienced team assembled by Viridor, which will work with a new engineering, procurement and construction contractor.
In Greater Manchester, Viridor recognises the financial challenges faced by its client, the Greater Manchester Waste Disposal Authority, due to prolonged austerity.
Pennon has announced today that it has agreed terms with Nomura to unwind a derivative, entered into in 2011, through Peninsula MB.
The derivative had been due to end in 2027, however, following a change in the economic benefit of this derivative outlined at the half year results 2016/17, Pennon is exercising its option to unwind the transaction early.
Pennon intends to announce its full year results for 2016/17 on Wednesday 24 May 2017.