Shanks Group PLC
30 March 2005
30 March 2005
Company Announcement
Shanks Group plc Pre-Close Period Trading Statement
Shanks Group plc, a leading European waste management company today issues the
following pre-close statement. The Group's preliminary announcement of the
results for the year to 31 March 2005 will be made on Thursday 2 June 2005 at
7.00am.
The Group is pleased to announce that trading for the year ending 31 March 2005
will be in line with expectations.
Following the recent restructuring of the UK business its performance continues
to improve although hazardous waste operations remain challenging. As previously
highlighted numerous regulatory and fiscal changes are reshaping the UK market
particularly for long term municipal contracts. Best and Final Offers have
recently been submitted for the 25 year PFI contracts at Central Berkshire and
Gloucestershire. The outcomes of these bids are scheduled for early 2005/6.
Overall, the European operations continue to perform robustly although economic
conditions remain flat.
The Group has been reviewing with its actuaries the effect of the UK landfill
disposal on the Group's defined benefit pension scheme (Scheme). It has been
decided to make a £10m cash payment into the Scheme, being the actuaries' best
estimate of that portion of the Scheme deficit which relates to the disposed UK
landfill businesses. This cash payment will increase bank debt but will not
affect current year profits as the existing pension charge already recognises
the overall Scheme deficit. As a result the Group's continuing businesses should
not now be encumbered by liabilities relating to the disposed businesses.
Ends
For further information contact:
Michael Averill, Group Chief Executive
David Downes, Group Finance Director
Shanks Group plc, telephone +44 (0) 1628 524523
www.shanks.co.uk
Ginny Pulbrook, Executive Director
Fiona Bradshaw, Associate Director
CDR, telephone +44 (0) 207 282 2945
This information is provided by RNS
The company news service from the London Stock Exchange
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