Shanks Group PLC
30 March 2007
Shanks Group plc
Pre Close Trading Statement
30 March 2007
Shanks Group plc, a leading European waste management company, today issues the
following pre close period trading statement. The Group's preliminary
announcement of the results for the year to 31 March 2007 will be published on
Thursday 31 May 2007.
Overall trading for the year to 31 March 2007 is expected to be in line with our
expectations.
The Mainland European operations have performed well in the period. The
acquisition of Smink Beheer BV in The Netherlands continues to perform in line
with our acquisition plan as co-operation with other Shanks Netherlands
companies increases. Trading in Belgium has again been strongly assisted by
some substantial non recurring projects.
In the UK, the acquisition of the waste management and recycling activities of
John W Hannay and Co Ltd has considerably strengthened our position in the
Central Belt of Scotland. The business has been integrated into existing Shanks
operations with additional investments also being made in new recycling
infrastructure. The programme is proceeding according to plan and is expected
to be of increasing significance when new regulations require the pre treatment
of all waste prior to landfill from October 2007.
UK Contaminated Land activity has been modest throughout the year but is
expected to improve during the 2007/8 year particularly with work associated
with the 2012 Olympic Games.
The first Mechanical Biological Treatment (MBT) facility at East London Waste
Authority (ELWA) project is now fully operational as is the MBT plant for the
Dumfries and Galloway contract. Substantial quantities of the solid recovered
fuel generated by the MBT process are now being regularly delivered to the
cement industry. The second phase of the ELWA project has experienced a delay
due to the insolvency of a subcontractor. Although now resolved there will be a
four month unrecoverable delay leading to higher than planned operating costs in
the early part of the 2007/8 year.
Potential within the UK municipal waste market remains high with the Group
recently appointed as preferred bidder for Cumbria County Council and to the
short list to bid for Derbyshire's waste elimination needs.
Ends
For further information please contact:
Michael Averill, Group Chief Executive
Fraser Welham, Group Finance Director
Shanks Group plc
Telephone +44 (0) 1628 554920
Ginny Pulbrook, Executive Director, Citigate Dewe Rogerson
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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