Preliminary Results 2015/16

Shanks Preliminary Results 2015/16

Business overview*

  • Revenue and profit growth in tough markets.
  • Commercial Waste Division delivered 18% trading profit growth, driven by self-help initiatives and stabilising markets.
  • Hazardous Waste Division delivered robust performance, with 1% trading profit growth despite over half of its revenues coming from the oil and gas sector.
  • Municipal Division performance impacted by market headwinds, with trading profit down 15%; successful commissioning of two flagship PFI facilities for long-term profit and cash generation.
  • Continued progress with self-help initiatives across the Group to improve margins.
  • Consistent strategy with increased focus on delivering returns from our existing assets across all our divisions.
  • Ongoing active portfolio management to recycle capital and increase returns, including £30m sale of Wakefield PFI financial assets.

* variances at constant exchange rates

Financial summary

  • Performance in line with revised expectations, with self-help initiatives largely offsetting macro-economic headwinds in the second half.
  • Revenue increased 7%*, with underlying growth in all Divisions.
  • Trading profit up by 4%* to £33.4m.
  • Operating profit of £9.8m compared with prior year loss of £12.4m.
  • Underlying profit before tax up by 4%* to £21.0m.
  • Underlying EPS up 1%* to 4.7p.
  • Total Group exceptional and non-trading charges of £23.5m, as previously disclosed
  • Ongoing focus on capital discipline delivered strong cash performance in a year of high investment, with underlying free cash flow generation of £56.8m.
  • Year end core net debt was lower than expected at £193m resulting in a net debt to EBITDA ratio of 2.6x.
  • Final dividend maintained at 2.35p per share, reflecting confidence in medium term growth.

* variances at constant exchange rates

Financial highlights

Revenue
£614.8m
EBITDA
£68.5m
Trading profit
£33.4m
Underlying EPS
4.7p

Previous results