Pennon shrugs off Big Freeze

15th Feb 2011 07:47

Pennon has traded in line with expectations since October 1 and doesn't expect December's Big Freeze to have a material impact on results at either the water or waste businesses.Strong summer demand was followed by the coldest December in 100 years, bursting pipes across the country."However, the financial impact of this is not expected to be material," Pennon said in an update Tuesday.Waste unit Viridor continues to do well and is confident of delivering full year growth in profit before tax despite December's severe weather which had a significant impact on operations. "As flagged at the Half Year, capital expenditure in both businesses in the second half of 2010/11 is expected to be significantly higher than in the first half," the firm said. "However gearing levels are forecast to be not materially different from the position reported in November."