Shanks Share Discussion Threads

[skinny] 03/2/2014 07:32

Highlights for the period include:

· Exit from UK Solid Waste on schedule. This has included the sale of the majority of our UK Solid Waste business to Biffa, completed on 31 December 2013, and the closure of the Blochairn and Kettering facilities.

· On track delivery of our Benelux Solid Waste cost reduction plan, including commencement of the first elements of the Shared Service Centres.

· Continued investment to grow our Hazardous Waste division. Permits have already been granted for the expansion of our profitable water storage facilities at ATM in Moerdijk.

· Construction work continuing on schedule with the £200M programmes at the Wakefield and Barnsley, Doncaster and Rotherham (BDR) PFI sites.

· Final planning permission secured for the Derby PFI gasification plant, allowing us to work towards financial close.

· Good progress with several early stage bid activities in the North American Organics market .

Notwithstanding the above, markets are challenging, with ongoing pressure on volumes and prices in Benelux solid waste and in EU organics.

Cash and borrowings

The Group delivered a strong cash performance in the third quarter, with net debt as at 31 December 2013 falling sharply to £151m from £182m at the half year. The reduction was due to strong working capital management, the receipt of sale proceeds from the UK solid Waste exit, an insurance payment relating to the Vliko fire in August and timing differences in PFI construction payments. Whilst there will be a cash outflow in the fourth quarter due to dividend and tax payments, we expect to finish the year with a comfortable net debt to EBITDA ratio, slightly better than our previous expectations.

Refinancing of Group banking facilities

A new revolving credit facility of €180m was signed with seven major banks on 31 January 2014. The new agreement will expire in January 2019 and refinances the existing bank facility which was due to expire in June 2015. The margins on the new facility are at a lower cost than the existing arrangements.

This follows the successful completion in July 2013 of our second Belgian retail bond, which raised €100m.


Outlook

The Board remains confident that the Group will deliver a trading result in line with its expectations for the year ended 31 March 2014.

[ivyhuang] 03/2/2014 07:14

Managers are so confident, let it get over 120 at first.

[contrarian2investor] 23/1/2014 19:16

Just in case the markets get ugly, I have placed a stop-loss of £1.10p on my SKS shares.

[contrarian2investor] 16/1/2014 11:34

With SHANKS now at £1.20p, they have now reached the takeover offer price, that last year I had hoped they would eventually get. So I have raised my target price to £1.50p

[cyfran101] 13/1/2014 14:17

Well i suppose you don't have to agree with their conclusion. I didn't agree that the dividend was under threat which was key to their sell viewpoint and held accordingly. I tend to read their articles and use it as a starting point for a more research. At least they state what the bear and bull points are and you may place more weighting on either one.On this occasion sks have proven to be very resilient.I'm hoping for more work with the water companies in generating energy from their own waste. I believe most produce only a quarter or less if their own energy requirements and certainly could be self sufficient.

[cyfran101] 13/1/2014 00:11

Nice to see that IC recognised the SKS sell recommendation was one of their worst in 2013.

[craigends] 10/1/2014 14:12

this is a stellar performance - where to? Is someone squirrelling away for a reason? Have held for some time but tempted as it nears previous highs ~130.

[wad collector] 07/1/2014 08:54

Starting the yr with a 2 yr high. Perhaps 2014 is the Year of the Brass.

[skinny] 03/1/2014 07:04

news-detail.html?announcementId=11822776">Completion of transaction

Leading international waste management business Shanks Group plc ('Shanks') is pleased to announce that it completed the sale of the majority of its UK Solid Waste business to Biffa on 31 December 2013. The transaction was announced on 15 October, and has completed on schedule following successful employee consultation and resolution of other routine regulatory clearances.

[skinny] 25/11/2013 13:09

Liberum Capital Buy 103.75 102.75 125.00 125.00 Reiterates

[contrarian2investor] 15/11/2013 17:44

With £1.11p acting as a barrier to further gains recently. I decided to sell 40% of my SKS shares today to lock in some gains. GLA c2i

[ivyhuang] 15/11/2013 15:53

The line is so straight, and looks like man made. Someone is building up?

[skinny] 08/11/2013 07:14

Jefferies International Hold 110.00 110.00 100.00 121.00 Reiterates

[wad collector] 07/11/2013 19:20

If I was a broker , I would not put my tips in the public arena until after I had told my favored clients. I suspect most published tips are the second line ones.
If ten brokers all say BUY , then either the share has already gone up , or they are in a cartel and will sell into the bounce.

[contrarian2investor] 07/11/2013 18:43

Erogenous Jones,

So the moral of your post is?

I find doing my own deep research and buying what is unloved and off the radar most rewarding.

Few investors or analysts were interested in SHANKS below 80p. Now they are happy to pay £1.10p or more for them. The market and investors love trends whether those are positive or negative. Recommendations and tips are merely opinions and do not dictate the price action of shares. Cash flow and profits are and will always be the main drivers.

[contrarian2investor] 07/11/2013 17:25

Great numbers from SHANKS today. Share price climbing ever higher. 2 year bowl nearly completed. Recycling and waste proving to be a winning combination.

[skinny] 07/11/2013 07:12

Financial Summary

· Strong performance in line with expectations
· Underlying profit before tax up 3% at constant currency to £18.3m on flat revenue
· Underlying EPS up 3% at constant currency to 3.4p per share
· Robust balance sheet with core net debt at £182.2m and net debt:EBITDA ratio of 2.1x
· Return on operating assets up by 60 basis points to 14.8% due to capital discipline and portfolio management
· Loss from discontinued operations in first half of £27.2m, £23.1m non cash
· Interim dividend maintained at 1.1p per share, reflecting confidence in medium term

Business Overview

· Successful cost programme in Solid Waste Benelux delivers increased profit despite continued challenging markets
· Hazardous Waste performed ahead of expectations, particularly in soil and water treatment
· Organics Netherlands delivers growth, new assets being commissioned
· UK Municipal growth in line with forecast, with good progress on construction of new facilities for BDR and Wakefield PFI projects
· Significant investment in Hazardous Waste where we can generate attractive returns
· Active portfolio management including the exit from UK Solid Waste will deliver £4m uplift in annualised profit before tax and £22m cash inflows for reinvestment in growth businesses, principally from exit of UK Solid Waste
· Well positioned for future growth, with portfolio of strong businesses in attractive key markets

[ivyhuang] 07/11/2013 07:08

H1 pretax profit up15% to £12.8m.

[ivyhuang] 06/11/2013 21:49

Lots of sell in afternoon, looks like to be -10 from my predication. Hold.

[ruethewhirl] 06/11/2013 20:15

Nice move, chart looking good.

[wad collector] 06/11/2013 19:36

I don't subscribe to IC but here is the gist

Waste management group Shanks (SKS) is suffering due to plunging cash flow and weak core markets, which experts aren't expecting to recover until 2015. With capital spending programmes draining cash, goodwill writedowns cutting net asset value (NAV) and a dividend cut forecast now being forecast by one broker, we wouldn't hang around for the full-year results to get out. Sell.