Shanks revenue rises and profit surges

The company’s underlying profit before tax was 23% firmer at constant currency, at £15.4m, or up 44% at reported rates.

Exceptional and non-trading items were £16.3m, £10.2m of which the board said related to the proposed merger with Van Gansewinkel Groep as announced in September, resulting in a statutory loss before tax of £0.9m

Underlying earnings per share were up 23% at constant currency to 2.7p per share, or up 43% at actual rates.

Core net debt remained in line with management expectations at constant currency, although a reported core net debt of £244m reflected adverse currency movement, the board claimed.

The board said the interim dividend would be maintained at 0.95p per share, adjusting for the bonus factor within the recent rights issue.

“We have delivered a good performance in the first half, with revenue and underlying profit growth at constant currency in line with our expectations,” said group chief executive Peter Dilnot.

“Our two Benelux divisions have performed strongly, offsetting a reduced result in Municipal.

“We are making good progress with our transformational merger with Van Gansewinkel Groep to create a leading waste-to-product business in the Benelux.”

Dilnot said the board’s expectations for progress for the full year were unchanged at constant currency and its reported results will benefit materially from recent foreign exchange movements.

“We are therefore well positioned both as Shanks, and as an enlarged group post-merger, to deliver long-term sustainable growth and attractive returns.”