Pennon Group, the parent company of both South West Water and Viridor, has announced strong profit growth for the first six months of the year.
The company today reported that adjusted pre-tax profit rose 10.7% to £97.3 million. Revenue was up 6% to £535.5 million.
South West Water’s revenues rose 1.5% to £226.5 million, while profit before tax increased by £6.9 million to £71.8 million, which will, no doubt, fuel renewed calls for lower prices.
Revenues at its waste management operation, Viridor, were up £26.9 million to £309.8 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) was stable at £55 million.
Pennon said it was well positioned in the economic slowdown as its water unit has a lower than average proportion of business customers, and its Viridor waste division was expected to tap into the “huge” opportunities offered by waste-based renewable energy production.