Pennon on track for FY targets despite UK flooding

14th Feb 2014 07:48

British water utility Pennon said it was on course to hit annual targets despite the severe flooding hitting its core market in south-west England.Pennon said its regulated business South West Water had continued its robust performance against regulatory requirements between 2010 and 2015 and was well-placed to outperform its expectations."Despite the exceptional weather and resultant flooding in the south-west, the company continues to deliver effective operational performance and high standards of customer service, underpinned by strong financial performance," it said in a trading update.The group said its waste business Viridor was set to make an operating contribution slightly above last year's, although increased pension charges had affected its pre-tax profit before interest, which was likely to be broadly flat against the year before.Pennon added that it had made excellent progress in efforts to turn Viridor from a conventional waste business into a business that generates power from waste.Two energy-from-waste plants were due to begin burning waste by the end of March, another plant started commissioning earlier this month and a further two sites will shortly enter commissioning."Overall financial performance at Pennon Group since 30 September 2013 remains on track to meet management expectations," it said in a trading update.PW