U.K.-based Shanks Group plc. is reporting that revenue is down eight per cent at a constant currency to £339.6 million, despite strong progress in organics with a new 30,000 tonne contract extension in York, Canada.
“While Solid Waste markets have deteriorated sharply, our Hazardous Waste, Organics and U.K. Municipal businesses have continued to perform well,” Peter Dilnot, group chief executive of Shanks Group plc., in a statement to media. “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.”
Shanks said its performance is in line with revised expectations following the recent trading update.
The company’s underlying profit before tax is down 22 per cent at a constant currency to £14.3 million.
Shanks noted a strong business overview:
- Business reorganised into market facing segments of Solid Waste, U.K. 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 £20 million per annum by 2015/16.
- Organics, Hazardous Waste and U.K. municipal segments continue to perform well, with aggregate profit improvement of £2.1 million (22 per cent at constant currency).
- Good progress in SW Wales Municipal anaerobic digestion (AD)
- Good progress in the U.K. municipal pipeline, with planning approval at Derby.
- Investment programme continues to deliver expected returns, and is well funded and with promising pipeline.