Shanks Group Plc (SKS.L) Monday said deterioration in the Benelux solid waste market conditions, together with a strengthening of sterling, will impact its first-half reported results. The shares fell about 5 percent in the morning trade.
In an interim management statement for the period since April 1, 2014, the provider of waste management solutions stated that it expects results for fiscal 2015 to be broadly in line with expectations, assuming no material deterioration in the Benelux solid waste markets.
However, it remains well placed to deliver profitable growth through its ongoing investment programme and any market recovery in the Benelux.
Shanks said it is experiencing further deterioration in market conditions in Solid Waste Benelux division. Solid Waste Benelux has experienced increased market pressure in the first quarter, particularly in the Netherlands.
Peter Dilnot, chief executive of the company said, "The Group has had a mixed start to the year with a solid performance from the three growth divisions but Solid Waste Benelux experiencing a further deterioration in market conditions."
Hazardous Waste division is on track to deliver growth, and Organics had an encouraging start to the year. UK Municipal division also performed in line with its expectations in the first quarter, the firm said.
SKS.L fell 4.66 percent to trade at 102.25 pence.
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