Trading Statement

Shanks Group PLC
28 March 2003


Shanks Group plc Pre-Close Period Trading Statement

At the half year the Group reported difficult trading conditions in the UK.
Despite these conditions a trading performance close to current market forecasts
for the year to 31 March 2003 is expected. There will, however, be three
exceptional charges totalling c.£5m. Firstly, to cover the net losses on the
disposal of certain underperforming businesses and non-core assets (c.£1m).
Secondly, to cover restructuring costs (c.£1m) and, lastly, a one off provision
relating to the reduction in the level of leachate in UK landfill sites as now
demanded by both the Environment Agency and the Scottish Environmental
Protection Agency (c.£3m).

UK Waste Services

In response to the reported harsh markets the Division has been restructured,
increased its prices and is applying stringent cost control in order to mitigate
the effects. In particular, the organisation has been further streamlined to
give better operational focus from a lower overall headcount.

The East London Waste Authority contract which reached financial close in
December 2002 has started well and is performing according to its business plan.

The electricity from landfill gas activity continues to flourish with capacity
increasing by 18 MW bringing the current total to 68 MW.

UK Chemical Services

Trading in this division has been largely according to our plans with the
exception of the new fluidised bed plant built at Fawley to process Meat and
Bone Meal arising from the BSE crisis. The contractor responsible has recently
completed extensive modifications to the plant since which its performance has
been in line with that expected when the works were agreed.

Netherlands/Belgium

Trading in these areas has been generally satisfactory although there are now
signs of economic slow down. Additionally, current profits are being positively
affected by the strengthening euro.

The State Council in the Netherlands has disallowed the grounds under which the
authorities had refused the ATM pyrolysis plant permit. Negotiations have
re-opened and it is anticipated that a permit can be secured in the coming
months.

In Belgium the application to re-permit new void at the CETEM landfill has been
lodged and the Group expects this application to succeed.

For further information on 28 March, before close period begins, contact 01628
524523:

Michael Averill, Group Chief Executive

David Downes, Group Finance Director

or John Shaughnessy, Group Head of External Relations


                      This information is provided by RNS
            The company news service from the London Stock Exchange