Report of the Directors
CHIEF EXECUTIVE'S OVERVIEW
Viridor is one of the UK's leading waste management, recycling and renewable energy companies. Over the past 10 years we have evolved from waste collection and disposal into a more broadly based resource recovery business with major activities in recycling and waste-based renewable energy generation. At the same time we have increased our profits at an average rate of over 20% (PBITA plus joint ventures) per annum since 2001. Over 40% of our profit contribution now comes from recovering value from waste.
We have core competencies in landfill disposal, recycling and waste-based renewable energy generation. The company operates materials recycling facilities (MRFs), waste transfer stations, treatment plants, household waste recycling sites (HWRS), composting facilities, landfills and renewable energy generation facilities in most regions of the UK and has a collection fleet focussed on the industrial and commercial market.
Continuing developments in the UK's waste management and renewable energy policies, driven by climate change and environmental awareness, create major opportunities for Viridor.
Viridor profits grew strongly in 2009/10, with over 40% now coming from recovering value from waste
In 2009/10 Viridor delivered another year of very strong profit growth despite the difficult economic conditions in the UK and worldwide. At the same time we progressed various major strategic initiatives, including in particular the Greater Manchester waste and renewable energy project (the largest of its kind in the UK) and the Lakeside Energy from Waste (EfW) plant, both of which commenced profitable operations. We also completed the acquisition of two further recycling companies. These and other initiatives are expected to enhance our business significantly in future years.
This reflects our focussed strategy of:
- capitalising on our strong position in landfill waste disposal
- proactively developing new recycling operations to meet ambitious EU/UK targets
- successfully exploiting the huge potential in waste-based renewable energy generation.
Further detail on the climate change and environmental drivers behind government's policies and Viridor's strategy is given in the sections on the main trends and business and strategy pages.
Colin Drummond, Chief Executive, Viridor Limited
18 October 2010