Preliminary Results 2014/15

Preliminary results 2014/15

Shanks Preliminary Results 2014/15: An interview with Peter Dilnot

Financial summary

  • Performance in line with trading update issued on 31 March 2015, with second half improvement delivered.
  • Revenue increased 1% at constant currency, with underlying growth from UK Municipal.
  • EBITDA down 10% at constant currency to £73.0m.
  • Underlying profit before tax down by 22% to £21.7m at constant currency.
  • Underlying EPS down 7% at constant currency due to lower effective tax rate.
  • Total Group exceptional and non-trading charges of £42.2m as previously disclosed.
  • Ongoing focus on capital discipline delivered strong cash performance, with lower than expected core net debt at £155m and net debt to EBITDA ratio of 2.3x.
  • Final dividend maintained at 2.35p per share, reflecting confidence in medium term growth.

Business overview

  • Challenging year, particularly in the first half, with market pressure in Benelux Solid Waste and one-off operational challenges in Hazardous Waste associated with new investment.
  • Business improvement programmes have delivered a stronger underlying second half and positioned the Group well for future growth.
  • Core Dutch solid waste markets beginning to improve.
  • Achieved ‘financial close’ for long-term Municipal contracts in Derby, UK and Surrey, Canada.
  • £200m build of plants in Wakefield and Barnsley, Doncaster and Rotherham (BDR) close to completion; both to commission this year.
  • Continued investment through the cycle in Hazardous Waste in infrastructure that is expected to deliver sustainable high quality earnings.

Financial highlights

Revenue
£601m
EBITDA
£73.0m
Trading profit
£34.3m
Underlying EPS
5.0p

Previous results

Interim Results 2014/15

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