WRG today announced preliminary results for the year ending December 31 2001 which show that the group achieved turnover of 281.2million (2000 – 175.2million) which represents an increase of 49% after excluding the impact of the annual increase in landfill tax. Profit before tax, goodwill amortisation and exceptional items 43.3m (2000 – 37.5million), an increase of 15.5%.
Paul Rackham, chairman of WRG, said in his statement: “The group has delivered strong results in difficult trading conditions and has made good progress during the year in integrating Hanson Waste Management, the acquisition of which was completed in January 2001. The first half of the year was affected by unusually high levels of rainfall and by the foot and mouth epidemic. The high water levels increased operating costs at several of our sites. The foot and mouth outbreak had a mixed impact on the waste management industry. Some regions in which we operate were affected by the significant reductions in economic activity and restrictions in movements of materials. Our overall results for the year were very impressive when viewed against this background.”
In the last year, WRG has expanded by almost 50% through the acquisitions of Hanson Waste Management, Integrated Waste Management Limited – a former local authority waste disposal company in Humberside – and four waste management and quarrying activities in Yorkshire and Lincolnshire from SITA. WRG now handles approximately 11 million tonnes of waste a year and derives about 55% of its income from long-term contracts with local authorities. Its waste to energy business generates 78 MW of electricity.
Exciting
Nigel Sandy, group chief executive, said: “The future for our business is exciting with a number of major projects in the pipeline; the largest is the Allington energy from waste project in Kent. Recycling opportunities will continue to arise as new legislation emerges, for example, the specialised disposal requirement for fridges. All this is backed up by ongoing volume growth in the sector coupled with a strategy that foresees our group continuing to play a key role in a rapidly consolidating industry.”
Mr Sandy told letsrecycle.com that recycling was “very, very important” to the Waste Recycling Group. He said: “We can't emphasise the importance of recycling enough.” Mr Sandy explained that WRG recycled 30,000 tonnes of glass last year and 222,000 tonnes of green waste compost, making it the largest UK producer of green waste derived compost. Mr Sandy also said that the company was “very active” in paper and metals recycling. WRG now has an average recycling rate of 19% and recycling at five civic amenity sites in Wigan increased from 4% to 36% over the last year.
Mr Sandy said that he did not see any conflict between the company's recycling aims and its plans for the proposed energy from waste plant in Allington, which is to be a cornerstone of Kent County Council's waste management plans. The energy from waste plant will include a front end materials recycling facility (MRF) and Mr Sandy said that the plant enables both the recycling of materials and the opportunity to create energy from waste that cannot be recycled.
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