Shanks full year trading in line

5th Apr 2016 10:49

(ShareCast News) - Waste-to-product business Shanks said trading for the year to the end of March was in line with the board's expectations.Ahead of its preliminary results on 19 May, the company said expectations for the year ending 21 March 2017 remained unchanged.Shanks said its strong ongoing focus on cash management meant year-end core net debt was better than expected at £195m after adjusting for the impact of the stronger euro.The group received £26m of the £30m proceeds relating to the sale of its Wakefield subordinated debt and equity as announced in February, with the remaining cash expected to be received in the short term.The loss on the sale of its Wakefield private finance initiative assets will be £5m better than previously expected at £5m thanks to movements in swap rates in the weeks prior to completion, the company said.In addition, Shanks has extended the net debt:EBITDA covenant on its core banking facilities at 3.5x for a further 12 months to September 2017 and cuts its total net worth covenant to £175m."These amendments will provide additional flexibility as we complete the build phases on our Derby and Surrey public private partnership contracts and give further protection against currency fluctuation as we approach the EU referendum."At 1115 BST, Shanks shares were up 0.6% to 83.50p.