Shanks profit shrinks

Waste management firm Shanks said half year profit fell 29 per cent as markets in the UK and Netherlands are hit by recession and record lows on construction output.

Underlying profit before tax fell to £14.3m for the six months ended September 30th 2012 versus £20.2m the same time a year earlier. Revenue dropped to £339.6m during the period from £397.7m previously.

Commenting on the results Chief Executive Peter Dilnot said: "While Solid Waste markets have deteriorated sharply, our Hazardous Waste, Organics and UK Municipal businesses have continued to perform well."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"We have launched programmes that will deliver significant cost savings over the next three years. We have accelerated the implementation of our growth strategy by reorganising the business into market facing segments," he added.

Shanks said with a clear strategy, robust balance sheet and its ongoing investment programme, it remains confident in its medium term growth prospects.

Underlining its confidence in future trading, the group has maintained its dividend payment at 1.1p per share.

"We are on track to deliver our revised expectations for the full year."

CJ