Shanks says results to fall below expectations

Waste management group Shanks said it now expects results for the year to 31 March 2013 to be slightly below the current range of expectations after market conditions in the UK and Dutch solid waste markets deteriorated significantly in the first half.

Shanks said its organics, hazardous waste, and UK municipal businesses continued to perform robustly and in line with company expectations.

However, while the group said it is delivering benefits from the investment programme and cost reduction plans, it warned these will not be enough in the short term to offset the challenging conditions in the Solid Waste markets.

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Chief Executive Peter Dilnot said: "While market conditions in Solid Waste remain very challenging, our Organics, Hazardous Waste and UK Municipal businesses are performing well and we are continuing to invest for future growth."

"Our cost reduction plans are progressing well and, with the new organisation in place, the group remains firmly on track to deliver profitable growth in the medium term."

CJ