Interim Management Statement

RNS Number : 2132L

Pennon Group PLC

08 August 2013

 

8 August 2013

PENNON GROUP PLC

INTERIM MANAGEMENT STATEMENT

Overall financial performance of Pennon Group since 31 March 2013 remains in line with management expectations.

South West Water

South West Water is continuing its robust performance against the 2010-2015 regulatory contract and is well placed to outperform its assumptions.  The company continues to deliver effective operational performance and high standards of customer service, underpinned by strong financial performance. 

South West Water is well prepared for legislative changes and will submit its 2015-2020 business plan to Ofwat in December 2013.

Viridor

Financial performance of Viridor since 31 March 2013 has been in line with management expectations. 

As previously advised this will be a transitional year for Viridor and the company expects PBIT plus joint ventures in 2013/14 to be broadly similar to 2012/13.  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.

Viridor continues to progress the construction of its pipeline of Energy from Waste (EfW) plants.  The company expects its EfW plants to deliver significant EBITDA growth starting from 2014/15.

New Pennon Group Executive Director and Chief Executive for Viridor

On 5 August 2013 Pennon Group announced the appointment of Ian McAulay as an Executive Director of the Pennon Group Board and Chief Executive of Viridor Limited with effect from 9 September 2013.  Following Ian's appointment, and as previously announced on 13 March 2013, Colin Drummond, the current Chief Executive of Viridor will retire and take up the position of Non-executive Chairman of Viridor.

Pennon Group

Since 1 April 2013 Pennon Group Plc has:

·     renewed £50m of Revolving Credit Facilities (RCFs) and term loans

·     put in place £90m of new RCFs and term loans

The Company intends to announce its Half Year Results for 2013/14 on Thursday 28 November 2013. 

Further information on Pennon, South West Water and Viridor can be found on the Group's website, www.pennon-group.co.uk

For further information, please contact:

Pennon:           David Dupont - Group Director of Finance               
                        01392 443998

                        Jo Finely - Investor Relations Manager
                        01392 443401

RLM Finsbury: Sarah Heald                                                                
                         0207 251 3801

Cautionary statement in respect of forward-looking statements

This Statement contains forward-looking statements relating to the Pennon Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, Pennon Group management.  Forward-looking statements are identified by words such as "aim", "anticipate", "believe", "continue", "could", "due", "estimate", "expect", "forecast", "goal", "intend", "may", "plan", "project", "remain", "seek", "should", "target", "will" and related and similar expressions, as well as statements in the future tense. Important risks, uncertainties and other factors that could cause actual results, performance or achievements of Pennon Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements include, among other things, changes in law, regulation or decisions by governmental bodies or regulators; general business and economic conditions in the UK and globally; the availability and cost of finance; poor operating performance or a failure or interruption of the Group's operating systems or the inability to carry out network operations or damage to infrastructure; failure or increased costs of capital projects or acquisitions or joint ventures not achieving predicted revenues or performance; reduced customer base, market reform or increased competition affecting prices or reduced demand for services; need for increased environmental provisioning; increased pension costs; and information technology and business continuity systems and processes failing.  These and other risks are described in greater detail in the 2013 Pennon Group Annual Report which can be viewed online at http://www.pennon-group.co.uk/pennon/uploads/latestresults/Annual-Report-3-July.pdf  Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them.  Nothing in this Statement should be construed as a profit forecast.

Any forward-looking statements are made only as of the date of this Statement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made.  The Group accepts no obligation publicly to revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required.

 

END

 

 

IMSLLFSRTLIDIIV