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Waste management firm impacted by poor construction output

Milton-Keynes-based waste management business, Shanks Group plc, has said poor market conditions in the UK and Holland have impacted performance.

The international firm said benefits from its investment programme and cost reduction plans will not be sufficient in the short term to offset the challenging conditions in the solid waste markets.

While the hazardous waste division of Shanks posed a strong international order book, recession, poor construction output, and increased price competition during the summer had “put pressure” on margins.

Peter Dilnot, Group Chief Executive of Shanks, said: “While market conditions in Solid Waste remain very challenging, our Organics, Hazardous Waste and UK Municipal businesses are performing well and we are continuing to invest for future growth. Our cost reduction plans are progressing well and, with the new organisation in place, the Group remains firmly on track to deliver profitable growth in the medium term.”

This was posted in Bdaily's Members' News section by Tom Keighley .