Last checked at 29 Sep 2017 07:00
29 September 2017
PENNON GROUP PLC
Update on Viridor's Greater Manchester Contract
As previously reported, progress is being made on the final agreements relating to the Greater Manchester PFI Contract.
The agreement relating to Viridor Laing (Greater Manchester) Limited has now been signed, with ownership passing to the Greater Manchester Waste Disposal Authority (GMWDA). Work continues on the remaining agreements in relation to INEOS Runcorn (TPS) Holdings Limited and the contract relating to the recycling and reprocessing operations.
For the joint venture entities, Viridor Laing (Greater Manchester) Holdings Limited and INEOS Runcorn (TPS) Holdings Limited, Pennon continues to anticipate a net one-off non-material impact to the income statement in 2017/18.
A fuller update will be provided at Pennon's half year results for 2017/18 on Wednesday 29 November 2017.
For further information, please contact:
Pennon: Susan Davy - Chief Financial Officer Sarah Heald - Director of Corporate Affairs & Investor Relations 01392 443 401
Finsbury: James Murgatroyd Faeth Birch 0207 251 3801
Notes to Editors:
Viridor Laing (Greater Manchester) Limited is wholly owned by Viridor Laing (Greater Manchester) Holdings Limited which in turn is jointly owned by Viridor (50%) and John Laing (50%).
INEOS Runcorn (TPS) Limited is wholly owned by INEOS Runcorn (TPS) Holdings Limited which in turn is a joint venture between Viridor, John Laing and Inovyn Chlorvinyls Limited.
The book value of Viridor's economic investment in the Greater Manchester project as at 31 March 2017 was £78.0 million, of which Viridor Laing (Greater Manchester) Holdings Limited represents £40.2 million and INEOS Runcorn (TPS) Holdings Limited represents £37.8 million.
Cautionary statement in respect of forward-looking statements
Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group's principal risks were described in the 2017 Pennon Group Annual Report which can be viewed online at www.pennon-group.co.uk/AR2017 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. They are made only as of the date of this announcement 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. No obligation is accepted to publicly 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. Nothing in this Statement should be construed as a profit forecast.