Shanks Group plc (LSE: SKS), the international waste-to-product business, has today announced its interim results for the six months ending 30 September 2014.
They show that performance has been much in line with that announced on 26 September, with revenue down one per cent at constant currency to £304.8 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) down 11 per cent, to £38.5 million.
Further to this, underlying profit before tax was down by 35 per cent, with earnings per share (EPS) down 33 per cent to 2.1 pence per share.
The interim dividend maintained at 1.1p per share, reflecting ‘confidence in medium term’. This will be paid on 9 January 2015 to shareholders on the register at close of business on 5 December 2014.
Commenting on the results, Peter Dilnot, Group Chief Executive, said: “As previously reported, it has been a challenging six months for Shanks due to an increasingly difficult Benelux solid waste market. However, we are confident that the actions we are taking to address these market pressures and improve our operational efficiency will support a stronger second half and a full year result in line with our revised expectations.
“Our three growth divisions are continuing to deliver against their strategic objectives and the Group is well positioned to deliver profitable growth over the longer term from our portfolio of market leading businesses.”
Unless stated otherwise, all financial information in this announcement relates to the group’s continuing operations. Discontinued operations comprise the UK Solid Waste business, which was sold to Biffa in 2013.
| 2014 | 2013* | Change % | Change % Constant Currency | |
|---|---|---|---|---|
| Revenue | £304.8m | £323.8m | -6% | -1% |
| EBITDA | £38.5m | £46.2m | -17% | -11% |
| Trading profit | £18.1m | £25.9m | -30% | -25% |
| Underlying free cash flow | £12.7m | £23.1m | -45% | -42% |
| Underlying profit before tax | £11.2m | £18.3m | -39% | -35% |
| Exceptional and non-trading items | £(19.8)m | £(5.5)m | ||
| Loss after tax (statutory basis) | £(9.8)m | £(17.6)m | 45% | 40% |
| Underlying EPS | 2.1p | 3.4p | -38% | -33% |
| Basic loss per share (statutory basis) | (2.5)p | (4.4)p | 45% | 40% |
| Dividend per share | 1.1p | 1.1p | - | - |
Read more about Shanks’ accounts.
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