Overall Group financial performance since 30 September 2011 remains on track to meet management expectations.
South West Water
South West Water is continuing its strong performance against the 2010-2015 (K5) regulatory contract, with capital investment increased substantially over the prior year.
The 9,300km sewer network increased by approximately 50% from 1 October 2011 following the adoption of private sewers and lateral drains. It is anticipated that shareholders will receive appropriate returns for K5 private sewer expenditure spent efficiently through the regulatory pricing mechanisms.
The water resource position is at a similar level to this time last year despite record breaking low rainfall last spring. During last autumn and early winter South West Water used its pumped storage facilities to help to refill Colliford, Stithians and Wimbleball Reservoirs and installed new distribution pumps in East Devon to optimise use of its boreholes.
Viridor
As flagged at the Half Year results announcement, Viridor has experienced a reduction in recyclate prices over the winter months reflecting world economic conditions. At the same time a higher level of activity year to date associated with its growing pipeline of long-term projects has led to an increase in bid costs. Full year profits are therefore expected to be a little below those of last year.
