Waste management group Shanks (SKS) has sold its industrial cleaning business in Wallonia, Belgium, as part of plans to dispose of non-core businesses. Shares in the group rose 3 per cent following the announcement. The cash costs of Shanks' sale of the business are expected to be around €3m (£2.1m), while the total loss on disposal will be around €4m-€5m. As a result of the sale, the Belgian commercial division is also expected to make a further €900,000 in cost savings a year by streamlining its support functions.
Shanks's core commercial waste business in Belgium put in a mixed performance during the first half of the year. Revenue fell 5 per cent due to lower specified recovered fuel (SRF) production at its Ghent site. However, management have implemented a self-help programme in Belgium, which includes disposing of non-core assets. This follows similar measures introduced in the Netherlands, which have yielded some success. The Dutch business has exited contracts with loss-making customers, reduced sickness levels by 190 basis points. And cost management programmes have resulted in a sustained improvement in performance at its Icova facility in Amsterdam.
