Waste management firm Shanks has said its solid waste business continues to face challenging market conditions in a statement issued ahead of the company’s AGM on 19 July.
The company’s interim management statement said it expects to deliever a robust performance for the year with underlying trading profit in line with expectations, and its UK municipal business achieving margins of more than 10%.
Peter Dilnot, chief executive said: “While market conditions continue to be challenging, particularly in our Solid Waste businesses, our Organics, UK Municipal and Hazardous Waste businesses are performing well.
He added: “We remain focused on taking the necessary actions to offset these headwinds through delivering returns from our strategic investment programme and driving operational improvements across the Group.
“Assuming market conditions do not deteriorate further, we expect to deliver a robust performance this year
The statement said Shanks was on track to deliver targeted returns of 12-15% on its £100m investment programme, and is making progress on a £150m second phase.
In May the firm reported a profit increase of 8% for the year.