Shanks reports robust financial performance

The Milton Keynes-based firm published a pre-close trading update today (April 4), for the financial year ending March 31, stating that performance across the year had been robust.

Full financial results are expected to be released in May, but in todays statement the company said: Since the Interim Management Statement on February 7, the Group has delivered a robust performance in trading conditions which have remained challenging. Accordingly, we anticipate that we will report a full year result in line with our expectations.

On cash and borrowings for the financial year, the Milton Keynes based company said: The balance sheet remains strong and the ratio of core net debt to earnings before interest, taxes, depreciation and amortisation at March 31 was estimated to be between 1.7 and 1.8 times.

PFI

On Monday (April 2), Shanks announced that its joint venture 3SE had signed a 25-year, 750 million PFI contract to treat waste for the Barnsley, Doncaster and Rotherham Waste Partnership (see letsrecycle.com story). The contract will see 3SE build a mechanical biological treatment (MBT) and anaerobic digestion (AD) facility, subject to obtaining planning permission, in 2015.

The firm, in partnership with engineering company Babcock, has also been named as the preferred bidder for the much delayed 750 million Wakefield waste PFI contract, which is expected to achieve financial close shortly (see letsrecycle.com story).

However December and January did see the company miss out on a number of contracts including a residual waste treatment contract for Gloucestershire county council, a contract worth up to 3 billion to treat waste for the Essex Waste Partnership and a 25-year waste disposal contract for Bradford and Calderdale councils.

In November the company announced its six month results for the first half of the financial year to the end of September 2011, which showed that the company had achieved strong growth in the UK and revenue was up 18% from 85 million for the same period in 2010 to 100 million in September 2011.

The companys full end of year results for the year ended March 31 2011 will be announced on May 17.