The company, which has operations in the UK, Netherlands, Belgium and other regions has claimed that following a ‘challenging’ first six months it saw a stronger performance in the second half of the year.
Shanks’ UK municipal division has also reported a 5% increase in revenues to £145 million, coupled with a 9% increase in trading profit to £10 million. Revenue for the year was recorded at £601.4 million, down 5% from the previous year, while earnings before interest, taxes, depreciation and amortisation (EBITDA) were also down 16% from £87 million to £73 million.
Elsewhere, the company says it has made ‘significant’ progress with its major PFI investments with its Barnsley, Doncaster and Rotherham (BDR) facility completing construction in February 2015 and now in commissioning.
Facilities
The company has also started supplying the first fuel into the new Ferrybridge incinerator that will take all of the material from the BDR facility. Shanks’ Wakefield facility has largely completed construction and is due to enter into commissioning shortly. Both plants are due to enter full service over the next financial year.
2014 also secure financial close on the Derby PFI contract, with construction of the gasification plant now underway.
Shanks has also noted the effects of the Zero Waste Scotland which it claims demonstrates the impact of government action in promoting waste diversion – citing an increase in organic waste tonnages delivered to its Cumbernauld AD facility.
Commenting on the results, Peter Dilnot, chief executive of Shanks Group, said: “After a challenging first half of the financial year, we delivered our committed stronger second half performance. Our core Dutch solid waste markets are developing as predicted, with some encouraging evidence of improvement.
“We continue to invest in infrastructure that will deliver high-quality earnings growth and these projects are on track. In addition, we have a refined strategy and a new organisation structure to deliver profitable growth. The Board’s expectations for the year ended 31 March 2016 remain unchanged excluding the impact of a fluctuating Euro exchange rate on our reported results.”
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