Shanks Group plc continues to trade heavily in challenging end markets, the company announced in an interim management statement.
“The Group has continued to trade robustly in end markets which remain very challenging, particularly in Solid Waste where we are making good progress with our cost reduction programme,” said Shanks Chief Executive Peter Dilnot in a statement to media. “Accordingly, the Board expects the result for the year ending 31 March 2013 to be broadly in line with its current expectations.”
In the first half of 2012, Shanks reorganised the group into market-facing segments of Solid Waste, UK Municipal, Organic Waste and Hazardous Waste to allow it to focus closely on active cost reduction in the Solid Waste businesses, where market conditions remain increasingly challenging.
The group’s structural cost reduction programmes, which will save $20 million pounds per year by 2015—2016, are progressing well, with approximately 60 per cent of the planned headcount reduction of 420 completed by the end of January 2013, the company said. The investment programme remains on track and continues to deliver the expected returns.
“Despite the very challenging market conditions, which will impact the rate of growth in the next financial year, we remain confident in the Group’s medium-term prospects,” Dilnot added.