Pennon performing in line

30th Jul 2009 08:02

Water firm Pennon Group said it has been performing in line with management expectations and intends to offer £120m of senior unsecured convertible bonds.The group also said its water arm, South West Water, is considering OFAT's recent Draft Determination and will be responding before the final declaration in November. It said around £15m of required investment identified in the K5 Final Business Plan is being advanced into 2009/10 in line with Government plans to stimulate infrastructure spending during the economic downturn.The group said in the 2008/09 results it noted the high recyclate prices in the first half of 2008/09, which have now returned to trend, and the closure of the Beddingham landfill since the year end. "These factors will impact the first half year results compared to the same period last year," said the group.Viridor is performing well in current conditions and remains confident of delivering continued full year growth in profits. The offering of approximately £120m of senior unsecured convertible bonds due 2014 will be convertible into fully paid ordinary shares. The net proceeds of the offering will be used for general corporate purposes and to refinance acquisitions including London Recycling Limited.