Shanks H1 profit down 24%
Nov 05, 2009
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Waste management firm Shanks reported a 24% decline in half year pre-tax profit as recycling levels deteriorated but the group said trading is now improving.
Pre-tax profit fell to £17.4m in the six months ended 30 September 2009 from £22.9m. Revenue fell to £335m from £346m in 2008.
"In what has continued to be challenging economic conditions, we have made good progress," said chief executive Tom Drury.
Shanks said revenue decline during the first quarter slowed during the second and it expects that trend to continue as cost cuts and other initiatives kick in.
"We are on track to deliver the £10m per annum of cost savings," he added.
Shanks, which raised £70m in rights issue in May, said it remains confident that the actions it is taking, together with regulatory and legislative drivers, firmly position it to take full advantage of any upturn when economic conditions improve.
The board has proposed an interim dividend of 1.0p per share, down from 1.7p a year earlier.
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