30th Jan 2015 09:08
LONDON (Alliance News) - Waste-to-product company Shanks Group PLC on Friday said it is trading in line with expectations, with signs of improvement emerging in its Benelux business.
The group said its Solid Waste Benelux business performed in line with expectations in its financial third quarter to the end of December, with underlying market conditions for the business showing signs of improvement. It expects recycling prices to stabilise in the Netherlands following the implementation of an incinerator tax in the country this year, but it said its Belgian business has been hit by weak end markets for solid recovered fuel products and by union strikes.
Its Hazardous Waste business also improved in the third quarter, following operational challenges in the first half. Shanks expects the full-year performance of the unit to be below expectations owing to the ramp up of new environmental control units, but it saw strong output volumes in December and is confident the business is well-positioned for growth in the future.
Its Organics business is trading well in the Netherlands and Canada, with an improvement in the performance of its Scottish and Belgian anaerobic digestion facilities. Its UK Municipal business also performed well.
"The group has continued to trade in line with our expectations in markets that have remained challenging. However, underlying market drivers for Benelux solid waste are showing some initial signs of improvement, as forecast," said Shanks Chief Executive Peter Dilnot.
Dilnot added that the weaker euro against sterling will have an impact on its reported results, but said the company expects to meet expectations for its underlying performance.
Shanks shares were up 1.0% to 99.25 pence on Friday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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