The waste management firm Shanks saw a drop in its shares of 13 per cent after it issued a warning of tough trading in the UK and announced that it was cutting 55 jobs.
Shanks reported a growth in sales across its business of 5.6 per cent for the nine months ending 31 December, as compared with the same period in the previous year.
The company, however, which provides waste disposal and recycling services for households and construction sites throughout England, Scotland and Wales, noted that trading in the UK continued to be a challenge due to a slowdown in business recycling volumes accompanied by a significant drop in the value of recyclables.
Shanks noted that it took quick measures to reduce operating costs, in an effort to mitigate the impact of the recession, which included the announced job cuts – representing six per cent of its total workforce. A company spokesman said that a consultation process with staff had begun.
Restructuring efforts will lead to a final quarter charge of approximately £1.5 million, but is expected to yield around £2 million in annual operational cost savings.
Shanks also operates in Belgium and Holland, and has an overall workforce of over 3,000 employees at more than 100 sites. In the 1880s, Shanks was founded in the west of Scotland as a construction company.
www.shanks.co.uk
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