23rd Jul 2015 08:37
LONDON (Alliance News) - Shanks Group PLC Thursday said it "remains confident" that the company's underlying results for the full year will be in line with expectations but warned the ongoing fluctuations in the sterling-euro exchange rate "may impact" its results.
The international waste-to-product business said the market conditions for its commercial division in the Netherlands continue to show signs of improvements whilst the construction and demolition activity has started the year "at a moderately higher level than last year" but said pricing remains competitive.
"Shanks has made an encouraging start to the year, with all three divisions trading in line with our expectations. Our end markets in the Dutch Commercial Division continue to show signs of improvement as forecast," said Chief Executive Peter Dilnot.
The hazardous waste division has shown an "improved performance" since April 1 compared to last year but said its industrial and cleaning activity has been hampered by the division;s high exposure to the Dutch oil and gas market which is struggling due to the fall in oil prices from around USD115 per barrel in July 2014 to around USD56 Thursday.
However, the division's soil treatment line has continued to perform well since new emission control equipment was commissioned over the past year, with a sustained strong output that means that the division is expected to deliver growth this year despite the market headwinds in the oil and gas segment, it said.
The municipal division has started the year in line with expectations in both the UK and Canada.
"Whilst ongoing fluctuations in the GBP:EUR exchange rate may impact our reported results, the board remains confident that the group's underlying result for the full year will be in line with its expectations," said Dilnot.
Shanks shares were up 1.8% to 100.56 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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