3rd Feb 2014 08:52
LONDON (dpa-AFX) - Waste management company Shanks Group PLC Monday said it has continued to trade in line with its expectations since November and expects to deliver a trading results in line with its hopes for the fiscal year ending March 31.
Peter Dilnot, Group Chief Executive, said: "Our rigorous management of the business is delivering results in the face of market conditions that remain challenging. The successful exit from UK Solid Waste will increase profits immediately and allow us to focus on growth areas where we can deliver sustainable and attractive returns."
"We are also delighted to have refinanced our core banking facility on a long term basis. Together with the Belgian bond raised earlier this year, we have secured our core financing requirements for the next five years," Dilnot added.
The group said it delivered a strong cash performance in the third quarter, with net debt as at December 31, 2013 falling to GBP151 million, from GBP182 million pounds at the half year. This decline was due to strong working capital management, the receipt of sale proceeds from the UK solid Waste exit, an insurance payment relating to the Vliko fire in August and timing differences in PFI construction payments.
While there will be a cash outflow in the fourth quarter due to dividend and tax payments, the firm expects to finish the year with a comfortable net debt to EBITDA ratio slightly better than its prior expectations.
Copyright RTT News/dpa-AFX
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