7th Nov 2013 08:18
LONDON (Alliance News) - Sustainable waste management firm Shanks Group PLC said Thursday revenue in the six months to September 30 2013 was up 5% to GBP325.3 million as the business performed in line with expectations.
Earnings before interest, taxes, depreciation and amortisation during the period was up 4% to GBP46.6 million. Underlying profit before tax was GBP18.3 million, up 3% at constant currency.
Profit before tax was GBP12.8 million, up on the GBP11.1 million reported for the comparable period last year.
Trading profit was GBP26.1 million from GBP24.1 million for the comparable period while underlying total free cash flow for the six month period was GBP23.1 million, up from GTBP10.2 million in 2012.
Shanks recorded a GBP27.2 million loss in the first-half from discontinued operations.
During the half-year, Shanks said its Hazardous Waste division performed ahead of expectation, particularly in soil and water treatment interests, as well as a successful cost programme in Solid Waste Beneleux recording increased profit despite continued challenging markets.
The firm also reports the UK Municipal growth has been in line with forecasts and good progress on the construction of new facilities for BDR and Wakefield PFI projects has been seen. Its Organics Netherlands business has also recorded growth, with new assets being commissioned for the division, said Shanks.
The company confirmed a 1.1 pence dividend per share, maintained from last year, "reflecting confidence in [the] medium term," said the firm. This is due to be paid on January 10 to shareholders on the register at the close of business on December 6 2013.
Peter Dilnot, Group Chief Executive of Shanks Group said, "In markets that remain challenging, Shanks delivered strong results for the first half, with underlying profit before tax and EPS up 3%. Hazardous Waste and UK Municipal performed particularly well and we have continued to invest in both of these growth businesses. Our self-help actions in Solid Waste Benelux are well on track, resulting in increased profits on lower revenues. Organics continued to perform steadily.
"Following the period end, we announced our exit from UK Solid Waste and the sale of the majority of those operations to Biffa. This exit and other portfolio actions will deliver a pro forma uplift of £4 million in annualised trading profit and £22m cash inflow for reinvestment in our growth divisions.
"Shanks is well positioned for the future with a portfolio of market leading businesses with clear opportunities for growth. The Board remains confident that the Group will deliver a trading result in line with its expectations for the full year and is pleased to maintain the Interim dividend," he adds.
The company has constructed specific strategy pans for further growth in its Solid Waste Benelux, Hazardous Waste, Organics and UK Municipal businesses, following the disposal of its UK Solid Waste arm. These directives include plans to improve the profitability of the Solid Waste Division through cost optimisation and strong commercial performance, broaden the scope of the Hazardous Waste Division, both geographically and technologically, expand the footprint of the Organics Division in target geographies through investment in new facilities, grow the UK Municipal business through execution of the current build programme for its long-term PFI/PPP contracts.
Shares in the waste management firm were up 0.23% in early trading Thursday at 109.25 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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