Final Results 2012/13

Final Results 2012/13

An Interview with Peter Dilnot

In this interview Peter Dilnot, Group Chief Executive, discusses Shanks' year-end 2013 results.

Results highlights

  • 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 overview

  • 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

Previous results

Interim Results 2012/13