Financial Summary
Resilient performance against the backdrop of very challenging Solid Waste markets.
Revenue, underlying profit before tax and underlying EPS down at constant currency.
Total cost savings of £17m delivered, with £11m operational savings plus £6m savings through structural cost programme, including headcount reduction of 310 full time employees.
Robust balance sheet, with lower than expected core net debt at £177.3m and EBITDA ratio of 2.0x.
Final dividend maintained at 2.35p per share, reflecting confidence in medium term growth.
Non-trading and exceptional charges of £61.8m in line with guidance previously reported and principally reflecting restructuring and impairment in Solid Waste.
Business Overview
Business reorganised into market-facing segments: Solid Waste, Hazardous Waste, Organics and UK Municipal.
Good profit performances in Organics (up 7%), UK Municipal (up 80%) and Hazardous Waste unchanged maintaining record prior year performance.
Solid Waste (down 50%) affected by impact of recessionary markets and record construction lows.
Structural cost programmes on track to reduce costs by £20m per annum by 2015/16.
Investment programme continues to deliver expected returns, is well funded and has a promising pipeline.
Commenting on the results, Peter Dilnot, Group Chief Executive of Shanks Group plc, said:
"This has been a challenging and transformational year for Shanks. Against a backdrop of very difficult markets, we have reorganised the Group into four market-facing segments to enable us to manage the business more effectively and create a platform for future growth."
"This new structure is already delivering benefits and, while Solid Waste end markets are expected to remain challenging in the year ahead, Shanks is on track to emerge a leaner, more focused and stronger business for the future. As a sign of confidence in the Group's medium-term growth prospects, the Board is pleased to propose a maintained final dividend for the year."
