Viridor sees profit slip as recycling prices fall

Viridor, the refuse and recycling operator, saw its turnover boosted by an acquisition spree last year, but profit fell as growth in recycling failed to offset a fall in landfill volumes.

Viridor bought JWS Churngold for £14.25m in November 2011, having purchased Storm Recycling in June of that year and In January 2011 Veolia's trade waste collection interests in Cornwall and North Devon and its  industrial and commercial collection interests in Devon and Somerset.

The company, which now makes half of its money from recycling activities, was hit by a fall in recyclate prices and the continuing reduction in landfill volumes mandated by the UK government.

Turnover in the year ended 31 March 2012 was up 6.9% to £761.1m, while pre-tax profit fell 8.4% to £57.6m.

In a statement Viridor said it was well placed for the future but cautious about immediate prospects as there was unlikely to be a recovery in recyclate prices in the short term.