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Shanks upbeat on year-end results

Shanks Group expects full-year results to be in line with expectations despite markets remaining challenging.

In an interim management statement, the firm said trading conditions continue to be difficult, but it had seen some improvements in its core divisions in the three months to December. Shanks said end-of-year results, due in March, will be in line with expectations “on an underlying basis”.

An incinerator tax of €13 (£10) per tonne in the Netherlands, effective 1 January 2015, is expected to  help stabilise and increase the prices for recycling materials. This will benefit Shanks’ division Solid Waste Benelux.

The division also performed well in Belgium despite being hit by weak end-markets for its solid recovered fuel products and trade union strikes.

The Hazardous Waste division saw record output in the period and the group is confident that it is now restored to a growth trajectory.

UK Municipal also performed well in the period, with a £300m programme for new facilities at Barnsley, Doncaster, Rotherham, Wakefield and Derby remaining on track and on budget.

Net debt at the end of December 2014 increased by £15m to £165m with no change to the year-end expectation.

Peter Dilnot, Shanks chief executive, said: “As the euro is currently weaker than our guidance of €1.25/£1, we expect a modest translation impact on our reported results. However, the board remains confident that the group’s full-year result will be in line with its expectations on an underlying basis.”

Shanks posted a 39% drop in pretax profits for the six months to September 2014.

 

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