28th Sep 2015 08:20
LONDON (Alliance News) - Waste-to-product company Shanks Group PLC on Monday said it is trading in line with its expectations and affirmed its outlook for the full year to the end of March.
The company said market conditions in the Netherlands have shown encouraging signs of improvement in the first half of its financial year, with a modest recovery in construction activity, firmer pricing and its own improvement programmes helping profitability in its commercial division. Trading conditions in Belgium, however, remain tough, due to weakness in offtake markets.
Shanks said its Hazardous division has been hit by a decline in orders from the oil and gas market within the low oil price environment. It has traditionally generated about half its revenue from this segment.
Its Municipal business has performed well in the half, though trading profit for the second half will take an exceptional hit of around GBP5 million due a four month delay to the start of full service at Wakefield caused by the bankruptcy of a major supplier.
Shanks expects the improved conditions in the Netherlands commercial business will offset the problems faced in the Hazardous and Municipal units, meaning its outlook for the full year is unchanged.
Shares in Shanks were up 0.6% to 91.00 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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