Revenue: £147m, 24% of the Group^*
Trading profit: £5m, 9% of the Group^*

The UK has historically relied heavily on landfill. The imposition of the European Landfill Directive and the UK Government's policy of doubling the rate of landfill tax from £40 per tonne to £80 per tonne by 2014 will have a major impact on both the Municipal and Industrial & Commercial (I&C) sectors. Implementation of the Directive requires waste disposal authorities to develop new strategies to reduce the amount of biodegradable municipal waste that they send to landfill by 25% between 2010 and 2013. In addition, consultation is currently ongoing to ban certain waste streams going to landfill, which will further increase the need for alternatives such as recycling and organic processing.

Our UK business comprises Solid Waste collection and recycling, municipal PFI contracts, contaminated land services and we have recently launched Orgaworlds' anaerobic digestion technology, with the first plant due to open in Cumbernauld in June 2011. The core objective is to develop an integrated recycling and organics business incorporating an expanded PFI business.

Legislative support for landfill diversion continues to strengthen and, as a result, the UK has significant growth potential. Our aim is to make Shanks the preferred alternative choice to landfill. We will continue to bid for new PFI where we are already one of the leading operators in the country, using those contracts that we win as a base to expand our I&C operation. At the same time, there is significant UK demand for anaerobic digestion and composting and, using our Orgaworld technology and others as applicable, we intend to secure a meaningful foothold in the Municipal and I&C sectors.

Find out more about Shanks in the UK

^*As at 31/03/2010