31st Jan 2008 10:30
Shanks Group PLC31 January 2008 Shanks Group plc Interim Management Statement 31 January 2008 Shanks Group plc, a leading European waste management company, today issues thefollowing Interim Management Statement. Overall trading in the final quarter of 2007 has been satisfactory reaffirmingour statement at the Interim Results announcement in November that trading forthe year to 31 March 2008 is expected to be in line with our expectations. In The Netherlands we have completed two further tuck-in acquisitions to ourSolid Waste business for a total consideration of £11m plus potential earn-outsof up to £2m. In the United Kingdom we have acquired Wastecom Ltd for aconsideration of £6m. This is a Solid Waste recycling business whichconsiderably strengthens our position in the East Midlands. UK Contaminated Land activity has improved since the first half and whilst therehas been little contribution from work associated with the 2012 Olympic Games inthe last quarter of 2007, contractual arrangements are now in place and workwill start in the first quarter of 2008. All three of our Mechanical Biological Treatment (MBT) facilities, two in theEast London Waste Authority (ELWA) contract and the other in the Dumfries andGalloway (D&G) contract, are operating satisfactorily. As mentioned at theInterim Results announcement, additional elimination costs continue to beincurred for the Solid Recovered Fuel (SRF) at D&G due to the temporaryinterruption of inputs to a cement kiln in North Wales following a problem atthe plant unrelated to the processing of SRF. The Group's core net debt position as at 31 December 2007 was £203m, an increasefrom 30 September 2007 of £51m due principally to acquisitions (£22m includingdebt acquired), the injection of our equity/subordinated debt into the ELWAcontract funding vehicle (£23m) and exchange (£9m). Most of our core debt isEuro denominated and the Euro has continued to strengthen against sterling sinceSeptember. PFI debt, excluding fair value of interest rate swaps, reduced by£19m to £113m; increases due to funding of ongoing capital investment at ELWAbeing offset by the repayment resulting from the equity/subordinated debtinjection. Ends For further information please contact: Tom Drury, Group Chief ExecutiveFraser Welham, Group Finance DirectorShanks Group plcTelephone +44 (0) 1628 554920 Ginny Pulbrook, Executive Director, Citigate Dewe RogersonTelephone +44 (0) 207 282 2945 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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