Shanks confident on full-year despite currency headwinds

23rd Jul 2015 15:03

(ShareCast News) - Waste-to-product business Shanks said trading has continued in line with the board's expectations since its preliminary results in May and the company expects full-year results to be in line with guidance.Shanks said it has made an encouraging start to the year, with all three divisions trading in line with its expectations.In addition, it said end markets in the Dutch Commercial division continue to show signs of improvement as forecast."We were also particularly pleased to commission our £80m Barnsley, Doncaster and Rotherham PFI facility on schedule earlier this month," said chief executive Peter Dilnot.Construction & Demolition activity has started the year at a moderately higher level than last year, although pricing remains competitive, said Shanks, adding that recyclate prices have also shown a slight recovery from a very low base.It said increases in VAT from 1 July on construction activity may dampen the recovery in the construction market, so it remains cautious as to the rate and shape of any market recoveryShanks said that as expected, the Hazardous Waste Division has shown an improved performance in comparison to last year, recognising the operational challenges in the prior period.Looking ahead, the company said that while ongoing fluctuations in the GBP/EUR exchange rate may impact the company's reported results, the board remains confident that the underlying results for the full-year will be in line with its expectations.At 14:12, Shanks shares were up 2% at 100.75p.