An Interview with Peter Dilnot
In this interview Peter Dilnot, Group Chief Executive, discusses Shanks' year-end 2013 results.
- Resilient performance against the backdrop of very challenging Solid Waste markets.
- Revenue, underlying profit before tax and underlying EPS down at constant currency.
- Total cost savings of £17m delivered, with £11m operational savings plus £6m savings through structural cost programme, including headcount reduction of 310 full time employees.
- Robust balance sheet, with lower than expected core net debt at £177.3m and EBITDA ratio of 2.0x.
- Final dividend maintained at 2.35p per share, reflecting confidence in medium term growth.
- Non-trading and exceptional charges of £61.8m in line with guidance previously reported and principally reflecting restructuring and impairment in Solid Waste.
- Business reorganised into market-facing segments: Solid Waste, Hazardous Waste, Organics and UK Municipal.
- Good profit performances in Organics (up 7%*), UK Municipal (up 80%) and Hazardous Waste unchanged maintaining record prior year performance.
- Solid Waste (down 50%*) affected by impact of recessionary markets and record construction lows.
- Structural cost programmes on track to reduce costs by £20m per annum by 2015/16.
- Investment programme continues to deliver expected returns, is well funded and has a promising pipeline.
* At constant currency