Pennon Group PLC Update on Viridor's Greater Manchester Contract (9552D)
May 02 2017 - 10:29AM
UK Regulatory
TIDMPNN
RNS Number : 9552D
Pennon Group PLC
02 May 2017
2 May 2017
PENNON GROUP PLC
Update on Viridor's Greater Manchester Contract
As reported in Pennon's Trading Statement on 9 February 2017,
the Greater Manchester Waste Disposal Authority (GMWDA) continues
to face financial challenges due to prolonged austerity.
Diversion of waste from landfill remains ahead of contractual
commitments and Viridor and its partners are keen to ensure this
progress is able to continue. Viridor and its joint venture partner
John Laing have been actively engaging with GMWDA as they have
worked to consider their options. Following a GMWDA meeting held on
26 April 2017, GMWDA has now confirmed it is seeking an exit from
the Recycling & Waste Management Private Finance Initiative
(PFI) Contract. This Contract relates to Viridor Laing (Greater
Manchester) Limited.
Discussions and negotiations are now expected to progress over
the coming weeks as we work with GMWDA to ascertain the
implications. There are provisions in the PFI Contract for
compensation to be paid to Viridor and John Laing on
termination.
The book value of Viridor's investment in the Greater Manchester
project as at 31 March 2016 is GBP72.3 million, of which Viridor
Laing (Greater Manchester) Limited represents GBP36.8 million and
Ineos Runcorn (TPS) Limited represents GBP35.5 million.
Pennon continues to anticipate reporting a strong financial
performance for the Group at its full year results for 2016/17 on
Wednesday 24 May 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
This Contract relates to Viridor Laing (Greater Manchester)
Limited, which is jointly owned by Viridor and John Laing. Both
Ineos Runcorn (TPS) Limited, jointly owned by Viridor, John Laing
and Inovyn, and Viridor Waste (Greater Manchester) Limited, that is
wholly-owned by Viridor, are contractually linked to Viridor Laing
(Greater Manchester) Limited.
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 2016 Pennon Group Annual Report which can be
viewed online at http://www.pennonannualreport.co.uk/2016/.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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