Interim Management Statement

Shanks Group PLC
31 January 2008


Shanks Group plc

Interim Management Statement

31 January 2008

Shanks Group plc, a leading European waste management company, today issues the
following Interim Management Statement.

Overall trading in the final quarter of 2007 has been satisfactory reaffirming
our statement at the Interim Results announcement in November that trading for
the 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 our
Solid Waste business for a total consideration of £11m plus potential earn-outs
of up to £2m.  In the United Kingdom we have acquired Wastecom Ltd for a
consideration of £6m.  This is a Solid Waste recycling business which
considerably strengthens our position in the East Midlands.

UK Contaminated Land activity has improved since the first half and whilst there
has been little contribution from work associated with the 2012 Olympic Games in
the last quarter of 2007, contractual arrangements are now in place and work
will start in the first quarter of 2008.

All three of our Mechanical Biological Treatment (MBT) facilities, two in the
East London Waste Authority (ELWA) contract and the other in the Dumfries and
Galloway (D&G) contract, are operating satisfactorily.  As mentioned at the
Interim Results announcement, additional elimination costs continue to be
incurred for the Solid Recovered Fuel (SRF) at D&G due to the temporary
interruption of inputs to a cement kiln in North Wales following a problem at
the plant unrelated to the processing of SRF.

The Group's core net debt position as at 31 December 2007 was £203m, an increase
from 30 September 2007 of £51m due principally to acquisitions (£22m including
debt acquired), the injection of our equity/subordinated debt into the ELWA
contract funding vehicle (£23m) and exchange (£9m).  Most of our core debt is
Euro denominated and the Euro has continued to strengthen against sterling since
September.   PFI debt, excluding fair value of interest rate swaps, reduced by
£19m to £113m; increases due to funding of ongoing capital investment at ELWA
being offset by the repayment resulting from the equity/subordinated debt
injection.

                                      Ends



For further information please contact:

Tom Drury, Group Chief Executive
Fraser Welham, Group Finance Director
Shanks Group plc
Telephone [phone]

Ginny Pulbrook, Executive Director, Citigate Dewe Rogerson
Telephone [phone]


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