WRG yesterday reported an increase in turnover to 129.1m (2000: 86.9m) with tonnage handled up by 12% on a like for like basis. The figures show a 10% increase in profit before tax and goodwill amortisation to 20.2m (2000: 18.3m). The group now handles in excess of 10 million tonnes of waste per annum with 55% of revenues coming from long term municipal contracts and 5% of revenues come from long term waste to energy contracts.
Commenting, Paul Rackham, chairman, said: “We have achieved a very sound result in a period when prolonged rainfall and foot and mouth restrictions put pressure on volumes and margins, particularly in the first quarter, but we continue to trade in line with expectations.
“There is a clear opportunity to maintain growth into the longer term through providing additional services to our customers to enable them to meet their expanding recycling and disposal requirements.”
WRG also announced that it is to buy Integrated Waste Management Limited for 14m in cash. IWM, based in East Yorkshire, own two transfer stations and four landfill sites and are in an area where WRG has a strong presence through a long-term contract with the Hull and East Riding councils.
A separate division is being set up by WRG to “develop and maximise the potential of our waste to energy business, an area already making a significant contribution.” The company intends to more than double its current 66 megawatts of capacity to 141 megawatts.
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