Milton Keynes, UK – According to Shank Group`s interim results for the six months ended 30 September 2015, underlying revenue grew by 5 percent at constant currency to £297m – a fall of 3 percent at actual rates. All divisions showed growth at constant currency. Trading profit from continuing operations, before non-trading and exceptional items, increased by 6 percent at constant currency to £17.4m (a fall of 4 percent at actual rates). The principal driver of this performance was an encouraging recovery in the performance of our Commercial Waste Division in the Netherlands.
The underlying profit before tax grew by 4 percent at constant currency to £10.7m. Core net debt was better than expected at £184m at the period end, representing a net debt to EBITDA ratio of 2.7x, comfortably within the Group’s covenant level of 3.5x.
The Commercial Waste Division reported a trading profit of £8.1m, an increase of 30 percent at constant currency, on revenues up by 2 percent. This result was underpinned by a strong performance from our improving Netherlands operations, where trading profit grew by 78 percent in local currency, slightly offset by a slower first half in Belgium.
The Hazardous Waste Division reported a 4 percent increase in revenues and a 1 percent increase in trading profit to £7.3m at constant currency, with the benefits of new investments coming on stream being offset by weakness in the core oil and gas markets.
The Municipal Division reported at constant currency a 12 percent increase in revenues, including the effect of construction revenues in Canada, but a 7 percent fall in profits to £5.2m as a result of the impact of previously reported contract changes.
Peter Dilnot, Group Chief Executive, commented on the results: “We have delivered revenue and profit growth in constant currency in the first half, underpinned by an encouraging improvement in our core Commercial Waste division in the Netherlands. The previously reported market pressures in the oil and gas segment and in our municipal business have offset some of this growth. The medium term outlook for all divisions remains positive. Our expectations for 2015/16 are unchanged and the longer term growth drivers for Shanks remain attractive. We continue to focus on implementing our strategy of driving margin expansion, investing in new infrastructure, and actively managing the portfolio.”
The full report can be downloaded from shanksplc.com.
Source: Shanks Group plc