Milton Keynes, UK — Shanks Group plc has announces its interim results for the six months ended 30 September 2016. The group balances a good trading performance, with revenue and underlying profit growth at constant currency in line with the expectations and ahead of the expectations at reported currency given weakness of sterling.
The Commercial Waste Division performed strongly, with trading profit up 20 per cent to £11.1m. Both the Netherlands and Belgium performed well, with volume growth in the Dutch construction, commercial and organics market segments. The Hazardous Waste Division performed well, with trading profit up 38 per cent to £11.4m primarily due to improved soil processing and water volumes. Ongoing market and operational challenges in the Municipal Division, as previously reported, resulted in a significant reduction in trading profit to £1.1m. Corrective action programmes being taken expected to deliver improved operational performance from the second half.
Peter Dilnot, Group Chief Executive, commented on the results: „We have delivered a good performance in the first half, with revenue and underlying profit growth at constant currency in line with our expectations. Our two Benelux Divisions have performed strongly, offsetting a reduced result in Municipal. We are making good progress with our transformational merger with Van Gansewinkel Groep to create a leading waste-to-product business in the Benelux. Our reported results will benefit materially from recent FX movements. We are therefore well positioned both as Shanks, and as an enlarged group post-merger, to deliver long-term sustainable growth and attractive returns.”
Expectations remain unchanged
The Board’s expectations for the year ending 31 March 2017 remain unchanged at constant currency and the current weakness of sterling will benefit the reported results for the full year materially. Longer term, the growth drivers in this business remain attractive. Shanks continues to focus actively in its existing business on driving margin expansion and completing existing infrastructure build programmes. Furthermore, the transformational merger with VGG will create a strong business with the scale, capability and expertise to deliver sustainable growth and attractive returns in Shank`s core Benelux market.
More details can be found under shanksplc.com.
Source: Shanks Group plc