Financial Summary
Revenue growth of 4% (1% at constant currency), driven by the Hazardous Waste Division and UK Municipal.
Underlying profit before tax up by 14% from that reported last year to £30.2m, due to exit from UK Solid Waste, with profit before tax on continuing businesses broadly flat.
Ongoing investment in Cumbria and good progress in construction at BDR and Wakefield has led to 25% increase in Directors' valuation of PFI portfolio to £110m.
Ongoing focus on capital discipline delivered strong cash performance with lower than expected core net debt at £156m and net debt to EBITDA reduced to 1.9x. Final dividend maintained at 2.35p per share, reflecting confidence in medium term growth.
Total Group exceptional and non-trading charges of £22.5m, principally reflecting non-cash goodwill impairment, and a loss on discontinued operations of £30.0m, being the cash generative exit from UK Solid Waste, partially offset by provision releases.
Business Overview
Outperformed the industry in markets that remain very challenging.
Successfully achieved exit from loss-making UK Solid Waste business generating cash and refocusing the Group.
Delivered profit growth in Solid Waste Benelux, our biggest division by revenue, for the first time in five years and ahead of any market recovery.
Delivered underlying growth in Hazardous Waste, while generating high returns and actively investing for further growth.
UK Municipal Division performing well, with key build programmes and Derby project making good progress.
Organics municipal pipeline progressing in Canada, with promising long-term contract opportunities, while Organics in Europe increasingly challenged by market over-capacity.
Repositioned Group with leadership in core markets and are executing our clear growth strategies for each division.
