Financial Summary
- Performance in line with revised expectations following the recent trading update.
- Revenue down 8% at constant currency to 339.6m.
- Underlying profit before tax down 22% at constant currency to 14.3m.
- Underlying EPS down 29% to 2.7p per share.
- Interim dividend maintained at 1.1p per share, reflecting confidence in medium term growth.
- Robust balance sheet with core net debt at 188.1m and EBITDA ratio of 2.1x.
Business Overview
- Business reorganised into market facing segments of Solid Waste, UK Municipal, Organic Waste and Hazardous Waste.
- Solid Waste markets in UK and Netherlands adversely affected by recession and record lows in construction output.
- Announcing today structural cost programmes that will reduce costs by 20m per annum by 2015/16.
- Organics, Hazardous Waste and UK Municipal segments continue to perform well, with aggregate profit improvement of 2.1m (22% at constant currency).
- Strong progress in Organics with a new 30,000 ton contract extension in York, Canada and good progress in SW Wales Municipal anaerobic digestion (AD).
- Good progress in the UK Municipal pipeline, with planning approval at Derby.
- Investment programme continues to deliver expected returns, and is well funded and with promising pipeline.
Commenting on the results, Peter Dilnot, Group Chief Executive of Shanks Group plc, said:
"While Solid Waste markets have deteriorated sharply, our Hazardous Waste, Organics and UK Municipal businesses have continued to perform well. We have launched programmes that will deliver significant cost savings over the next three years. We have accelerated the implementation of our growth strategy by reorganising the business into market facing segments.
With strong market positions, a clear strategy, robust balance sheet and our ongoing investment programme we remain confident in the Group's medium term growth prospects.
Reflecting this confidence, the Board is maintaining the interim dividend level and we are on track to deliver our revised expectations for the full year."
