Shanks well positioned as it reduces full year loss, lifts revenue

Waste management company Shanks Group said it is well positioned to meet its expectations for 2016/17 as it turned in a much-reduced full-year pretax loss on improved revenue.

"We continue to implement our self-help initiatives to drive margin expansion across all our divisions and significant new infrastructure assets are coming on stream," the company said.

"As we come to the end of a period of high capital investment in the coming year, we will focus even more intensively on delivering returns from our existing assets."

Shanks' full-year pretax loss was £2.5 million, from a loss of £20.5 million a year ago. It notably swung to an operating profit of £9.8 million, from a loss of £12.4 million.

Revenue was £613.8 million, from £599.4 million. It maintained a final dividend of 2.35p a share, taking the total to 3.45p.

"We have delivered revenue and profit growth in 2015/16 despite tough macro markets," the company said in a statement.

Shanks' Commercial Waste Division returned to strong profit growth, and its Hazardous Waste Division delivered a robust performance. The Municipal Division experienced market headwinds but commissioned two flagship assets.

"Overall we remain well positioned to make progress and meet our expectations for 2016/17."