The statement said: On 7 December 2009 the board announced that it had received an unsolicited approach from a private equity group regarding a preliminary and highly conditional cash offer for the group. (see MRW story) The company confirms that confidential discussions are taking place which may or may not lead to a formal offer being made.
It also reported that due to adverse weather conditions the trading outcome for they year is expected to be slightly lower than expected. However, trading performance remains satisfactory and cost reduction plans are on track with over £7million of the targeted £10M cost savings now achieved.
Shanks group chief executive Tom Drury said; In what remain tough trading condition for the waste industry, we continue to deliver against our priorities of cutting costs, improving free cash flow and investing in our growth strategy of recycling, organic processing and UK PFI.
According to Shanks, its confidence in the UK waste market has increased following the recent Government announcement regarding the definition of biodegradable waste under the Landfill Directive. This move seems likely to add to the volume of waste requiring diversion from landfill.