Shanks Share Discussion Threads

[gateside] 25/6/2008 07:02

Good summary of results.

[cerrito] 30/5/2008 09:09

a good synopsis

[rabbrooks] 12/5/2008 17:00

I believe there will be changes for shanks sooner rather than later. The vast bulk of business is in Europe. It appears they have been relatively unsucessful in winning any new substantial contracts with the UK local authorities. I imagine a large continental operator would find SKS a worthwhile addition with the purchase balanced by the sale og the UK businesses.Sks should give us a decent return yet on our capital.

[cobweb] 02/5/2008 23:06

Where to next for this one ?

[oldvic] 20/4/2008 21:17

huy recommendation in telegraph yesterday
saying now biffa gone
shanks is number 1 in its field

[gateside] 07/4/2008 07:19

07 April 2008

Shanks Group plc: €13 million acquisition of Belgian Group, Foronex



7 April 2008



Shanks Group plc, a leading European waste management company, has today
announced the acquisition of several companies which together constitute the
Foronex Group. The companies have been acquired from Mr Joos Wemel and other
members of his family for a cash consideration of €13m (€23m gross of net debt
acquired).



Foronex is a leading player in the wood waste and by-products market in the
Benelux handling approximately 0.9 million tonnes per annum. The principal
sources of inputs are the timber and waste management industries. The major
outlets for these products are to the board manufacturers and increasingly the
supply of biomass for green energy production. Foronex employs some 250 people
and runs approximately 200 trucks.



Commenting on the transaction, Shanks Group plc Group Chief Executive, Tom Drury
said: 'We are delighted with this acquisition which better positions the Group
to take advantage of the converging waste and energy markets, an increasingly
important component of modern waste management. It also provides further
integration in the supply chain for waste wood, a major output from our
recycling centres in both the Benelux and the UK.'

[oldvic] 01/4/2008 17:42

wont say their plan was rubbish

[cerrito] 01/4/2008 08:11

From today's Times
a fair assessment
quote
Plays on an appreciating euro don't come much purer than Shanks Group. The £600 million waste management specialist must be alone among British-based constituents of the FTSE 350 in drawing virtually all its operating profits in the currency - a reflection of the nascent state of its British business, at which earnings are largely offset by central costs, and Shanks's extensive operations in Belgium and the Netherlands.

So it was that Shanks's expected fall in sales in Belgium - caused by legislative restrictions on municipal waste sent to landfill - was more than compensated by strong Dutch trading and conversion gains from a strengthened euro. As a result, the company reassures that it is on course to meet full-year profit forecasts.

Yet Shanks's attractions extend beyond currency moves. After the disposal of its British landfill operations four years ago Shanks started afresh on its home turf by licensing mechanical and biological treatment methods that met the need for diverting waste away from landfill, a need that is growing ever more urgent given a punitive taxation regime under which British landfill tax is rising from £24 a tonne to £48 by 2010 - and is expected to keep on rising.

That has sent local authorities in search of private sector partners that can develop expensive waste treatment facilities, for which Shanks and its peers are rewarded by being given 25-year contracts to run them.
Related Links

* Shanks rises 7% after it impresses analysts with group's rubbish plan

After repeated delays, Shanks's flagship PFI project for the East London Waste Authority is up and running, while the company is the preferred bidder for a £400 million scheme in Cumbria, that is due to close in July. It is on the final shortlist for £850million of work in Cheshire and Merseyside, with more than a dozen other big-ticket PFI tenders due to be decided by next summer.

Elsewhere, last year's acquisition of Orgaworld, which composts food waste for Albert Heijn, the largest supermarket chain in the Netherlands, raises the possibility that Shanks can import that model to the UK. At the same time, the arrival last October of Tom Drury as chief executive - previously he was with United Utilities - raises the prospect of a more radical restructuring.

In the meantime, Shanks sits in a defensive niche and after the completion of the private equity takeover of Biffa will be the last fully listed representative of its sector. However, after yesterday's 8 per cent rise to 260p, or 19 times current year earnings, the near-term potential is priced in. Hold.

[gateside] 31/3/2008 07:13

Trading Statement




RNS Number:1021R
Shanks Group PLC
31 March 2008


Trading Statement

31 March 2008

Shanks Group plc, a leading European waste management company, today issues the
following pre close trading statement.

Trading in the quarter to 31 March 2008 in the majority of our Mainland European
activities has been strong, although as predicted at previous results
announcements, the contribution from our Belgian landfill has declined in the
year ended 31 March 2008. This has been particularly marked in the last quarter
following an increase in the legislative restrictions on the landfilling of
municipal waste in the Walloon Region from January 2008. The continued
strengthening of the Euro has also boosted our Euro denominated results when
converted into Sterling. In the UK overall trading is in line with our
expectations. For the Group overall therefore, the performance in the quarter
to 31 March 2008 was robust giving us confidence that the full year result for
the year to 31 March 2008 will be in line with our expectations.

In order to come into line with general practice amongst listed companies we
have redefined our Headline Profit to exclude amortisation of intangible assets
arising on acquisition. Prior to year ended 31 March 2007 the impact of this is
immaterial. Below is a table restating the affected figures for the 2007 full
year and the 2008 Interim Results.

The Group's preliminary results announcement for the year ended 31 March 2008
will be published on Thursday 29 May 2008.

[w.bramley] 25/2/2008 08:53

The news from Biffa, may mean the potential bidders who were looking at Biffa, may now look elsewhere, and that could be to Shanks. My guess is that although, the fall today in the BIFFA price seems to have steadied the SKS price, their attention could soon turn to SKS being in the same line of business and SKS may be due for a rise. Also when the BIFFA shareholders receive their offer money, I can see them also eyeing SKS. Keep a VERY close watch.

[john hampton] 18/2/2008 13:00

Agreed, the recent bids on Biffa & Novera have brought the sector into life, I'm invested here + looking at a couple of others like Augean & Prometheus Energy. I think invesors will come into this sector strongly over the next 6 months once the overall markets pick up.

[mr.oz] 08/2/2008 14:58

SKS , big name in a reducing sector, makes it more likely to be in play soon too, IMO

[bryan2] 08/2/2008 12:00

Ageed. share price should reach 270p soon.

[gateside] 08/2/2008 11:08

I imagine many investors will put their money from the Biffa takeover into Shanks.

[w.bramley] 08/2/2008 09:14

BIFFA up on agreed bid, makes Shanks a target for a bid.

[oldvic] 08/2/2008 08:58

somethings afoot


and its not a ruler

[mr.oz] 06/2/2008 22:55

Shanks Group PLC
31 January 2008


Shanks Group plc

Interim Management Statement

31 January 2008

Shanks Group plc, a leading European waste management company, today issues the
following Interim Management Statement.

Overall trading in the final quarter of 2007 has been satisfactory reaffirming
our statement at the Interim Results announcement in November that trading for
the year to 31 March 2008 is expected to be in line with our expectations.

In The Netherlands we have completed two further tuck-in acquisitions to our
Solid Waste business for a total consideration of £11m plus potential earn-outs
of up to £2m. In the United Kingdom we have acquired Wastecom Ltd for a
consideration of £6m. This is a Solid Waste recycling business which
considerably strengthens our position in the East Midlands.

UK Contaminated Land activity has improved since the first half and whilst there
has been little contribution from work associated with the 2012 Olympic Games in
the last quarter of 2007, contractual arrangements are now in place and work
will start in the first quarter of 2008.

All three of our Mechanical Biological Treatment (MBT) facilities, two in the
East London Waste Authority (ELWA) contract and the other in the Dumfries and
Galloway (D&G) contract, are operating satisfactorily. As mentioned at the
Interim Results announcement, additional elimination costs continue to be
incurred for the Solid Recovered Fuel (SRF) at D&G due to the temporary
interruption of inputs to a cement kiln in North Wales following a problem at
the plant unrelated to the processing of SRF.

The Group's core net debt position as at 31 December 2007 was £203m, an increase
from 30 September 2007 of £51m due principally to acquisitions (£22m including
debt acquired), the injection of our equity/subordinated debt into the ELWA
contract funding vehicle (£23m) and exchange (£9m). Most of our core debt is
Euro denominated and the Euro has continued to strengthen against sterling since
September. PFI debt, excluding fair value of interest rate swaps, reduced by
£19m to £113m; increases due to funding of ongoing capital investment at ELWA
being offset by the repayment resulting from the equity/subordinated debt
injection.

[mr.oz] 06/2/2008 22:53

Shanks Group PLC
31 January 2008


Shanks Group plc

Interim Management Statement

31 January 2008

Shanks Group plc, a leading European waste management company, today issues the
following Interim Management Statement.

Overall trading in the final quarter of 2007 has been satisfactory reaffirming
our statement at the Interim Results announcement in November that trading for
the year to 31 March 2008 is expected to be in line with our expectations.

In The Netherlands we have completed two further tuck-in acquisitions to our
Solid Waste business for a total consideration of £11m plus potential earn-outs
of up to £2m. In the United Kingdom we have acquired Wastecom Ltd for a
consideration of £6m. This is a Solid Waste recycling business which
considerably strengthens our position in the East Midlands.

UK Contaminated Land activity has improved since the first half and whilst there
has been little contribution from work associated with the 2012 Olympic Games in
the last quarter of 2007, contractual arrangements are now in place and work
will start in the first quarter of 2008.

All three of our Mechanical Biological Treatment (MBT) facilities, two in the
East London Waste Authority (ELWA) contract and the other in the Dumfries and
Galloway (D&G) contract, are operating satisfactorily. As mentioned at the
Interim Results announcement, additional elimination costs continue to be
incurred for the Solid Recovered Fuel (SRF) at D&G due to the temporary
interruption of inputs to a cement kiln in North Wales following a problem at
the plant unrelated to the processing of SRF.

The Group's core net debt position as at 31 December 2007 was £203m, an increase
from 30 September 2007 of £51m due principally to acquisitions (£22m including
debt acquired), the injection of our equity/subordinated debt into the ELWA
contract funding vehicle (£23m) and exchange (£9m). Most of our core debt is
Euro denominated and the Euro has continued to strengthen against sterling since
September. PFI debt, excluding fair value of interest rate swaps, reduced by
£19m to £113m; increases due to funding of ongoing capital investment at ELWA
being offset by the repayment resulting from the equity/subordinated debt
injection.

[hmkwan] 28/1/2008 12:00

trade support line should at 180-200p at future.

[gateside] 28/1/2008 09:47

Government spending to aid Biffa and Shanks
By Tom Griggs

Published: January 4 2008 03:10 | Last updated: January 4 2008 03:10

UK waste disposal companies including Biffa and Shanks look set to benefit further from increased government spending on new incineration, recycling and waste treatment facilities.

New research by Catalyst Corporate Finance argues that the UK will have to invest £9bn in new incineration and treatment facilities in order to cut the amount of waste dumped in landfill to just 20 per cent by 2020, while also providing opportunities for energy generation from waste.

EDITOR'S CHOICE
Biffa set to recommend new offer - Dec-19Biffa again rejects private equity offer - Dec-06Shanks hit by slowing services demand - Nov-08Leading contenders to benefit from the spoils of waste disposal spending include Biffa and Shanks, the largest pure-play waste companies in the UK. Shares in both companies fluctuated in 2007 but are now broadly at the same level as last year. Shanks shares are back at about 230p after hitting a high of 280p in May and a low of 195p in November.

Biffa shares have also been boosted by a £1.23bn takeover approach made last month by Montagu and HG Capital. Biffa shares have recovered to 330p since the interest from Montagu and HG Capital was revealed. They fell as low as 220p in August. Biffa was demerged from Severn Trent in October 2006 at 265p.

The recommended offer is the latest of a number of examples of merger and acquisition activity in the sector. Last March, Montagu sold Cory Environmental to ABN Amro for £588m. In 2006, Spanish construction company FCC bought the Waste Recycling Group from Terra Firma for about £1.4bn, while France's Veolia bought Cleanaway.

Other rivals for the private finance initiatives include Pennon Group, which runs a waste management division, Viridor, and South West Water. Other privately held and overseas rivals such as Cory Environmental, FCC, Suez and Veolia also compete in the field, which has attracted increasing interest from private equity.

In the recent comprehensive spending review, the government earmarked £1.5bn in private funding initiative credits to help local authorities over the next three years. But Catalyst claims this will not be enough to meet the 2020 targets.

Currently, the UK sends 73 per cent of waste to landfill, incinerates 3m tonnes of waste a year and has the capacity to recycle or compost about 6.5m tonnes. In order to reduce the total sent to landfill to 20 per cent, Catalyst estimates the UK will need to incinerate 11.5m tonnes – which could mean an additional 50 incineration facilities – and recycle or compost 28m tonnes a year.

[gateside] 28/1/2008 09:42

Shanks cut to 'neutral'

Goldman Sachs downgrades Shanks Group to 'neutral' from 'buy' with a reduced target price..

...of 265 pence from 281 pence following its recent outperformance relative to the Utilities sector.

In a note this morning, the broker said it is also lowering estimates on the back of a harsher economic outlook and concerns about a slowing economy.

It said historically there is a correlation between economic growth and waste volumes, and it lowers its earnings forecasts for stocks with a sizeable exposure to the waste market.

For 2007, the broker's earnings forecast for Shanks falls by 2 pct while, beyond 2007, it lowers its earnings per share forecast by between 2 pct to 9 pct to 2010.

Its reduced price target of 265 pence reflects the revised earnings as well as recent market movements, the broker added.

It said that, while Shanks remains its preferred waste company in the context of the waste market, with 17 pct potential upside, it thinks there is better value elsewhere in the Pan-European Utilities sector following recent market volatility.

[gateside] 28/1/2008 09:40

I have started a new thread with some charts in the header

[oldvic] 20/1/2008 17:36

i view similar to biffa
not quite such a high profile

now look whats happening to biffa