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South West Water continues ‘robust’ financial performance

South West Water owners Pennon Group has said its overall financial performance since 31 March 2013 "remains in line with management expectations."

In an interim management statement on Thursday, the company said South West Water was continuing its “robust” performance and was well placed “to outperform its assumptions”.

The company said: “[South West Water] continues to deliver effective operational performance and high standards of customer service, underpinned by strong financial performance.”

Waste business Viridor, also owned by Pennon, has suffered from a decline in recycling and landfill revenues.

This will be a “transitional year” for Viridor and profit before interest and taxes plus joint ventures in 2013/14 is expected to be “broadly similar” to the 2012/13 figure of £36.5 million.

Pennon said: “Cost reductions, combined with a modest recovery in recyclate revenues per tonne, are delivering an improvement in recycling margins per tonne compared to the second half of 2012/13, offsetting the trend decline in landfill.”

Since 1 April 2013, Pennon has renewed £50 million of Revolving Credit Facilities (RCFs) and term loans, and put in place £90 million of new RCFs and term loans.