Commenting on Shanks' interim results for the six months ended 30 September 2004, chairman Ian Clubb said that the Ecodeco system “is proving extremely interesting to UK local authority customers. Some 10 million tonnes of annual waste arising are due to be tendered in a variety of projects in the coming five years, representing approximately one third of the UK market. As Shanks has sole UK rights to this technology, it is well placed to compete for this growing opportunity.”
Profit
On the financial side, the group reported a headline profit up by 24% in the six months to September 2004.
Results for the company are complicated by the sale in July this year of its landfill and power operations to Waste Recycling Group owner Terra Firma, for 227.5 million. This left Shanks with interests mainly in recycling, municipal contracts and hazardous waste.
Mike Averill, chief executive, said: “These results reflect the improved financial strength of the group following the disposal to Terra Firma and the streamlining of our UK operations.”
Mr Averill added: “In the medium term, we expected the impact in the UK of the Landfill Directive and Landfill Tax to significantly change the waste market, with future emphasis on landfill diversion.”
Unsatisfactory
The company – which also has operations in Belgium and Holland – described the performance of its continuing UK activities as “unsatisfactory” with them only breaking even. The chairman noted: “The management changes made last year together with the restructuring … are generating improved performances in the collections and recycling activities. Part of the upturn has come from the exit from loss-making activities and part from operational efficiency gains. Further progress is expected.”
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