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

Important information:

On 28 February Shanks Group plc merged with Van Gansewinkel Groep BV to form Renewi plc. Information on this website is no longer being updated and is for historical reference only. Please visit www.renewi.com for latest information, or continue to the historic Shanks Group plc website.