Shanks Group has warned that its full-year results will be around 15% lower than previously expected.
The firm has released a trading statement for the six-month period ending 30 September which warns that a poor performance by its Benelux Solid Waste arm would impact results but it was upbeat about the UK.
Chief executive Peter Dilnot said: “The underlying performance of our three growth divisions remains robust but market conditions in our Benelux Solid Waste business have deteriorated further over the summer and will impact our performance.
“We remain confident that the decisive action we are taking will enable the group to deliver a stronger second half. Overall, the board now anticipates that the group’s full year results will be around 15% below management’s previous expectations.”
Dilnot explained that the Benelux division had faced weak volumes, especially in the Netherlands’ construction and demolition sector.
He added: “The competitive environment remains intense, with market participants seeking to gain volumes by aggressive pricing in order to offset pressure on gate fees, lower volumes and prices of recyclates.”
There was better news from the UK municipal division, which Shanks said had performed well in the period.
Dilnot said: “The construction projects at Barnsley, Doncaster and Rotherham and Wakefield remain on time and on budget, and we were delighted to secure funding for the £145m Derby project (pictured), where construction work has now commenced.”
The organics division “had a good first half year” and Dilnot revealed plans to expand Shanks’ Cumbernauld anaerobic digestion plant in Scotland.
Shanks will release its interim results in early November.