Waste Recycling's accounting change produces £4.9m loss
Wednesday 14 August 2002
Waste Recycling Group, Britain's largest processor of waste, saw its shares slump 18 per cent yesterday after it announced it had adopted a more cautious accounting policy which created £4.9m of losses in the six months to 30 June.
The company said £3.5m of the write-off was due to ongoing delays in rolling out its compost business, which separates organic waste from domestic rubbish and sells it on to corporate customers.
Hugh Etheridge, the finance director of WRG, said the delay made it "prudent" to write off costs against developing the business. Its shares closed down 60.5p to 272.5p.
Mr Etheridge said: "In this era of much more conservative accounting and more rigorous tests about what assets are on the balance sheet, we thought it was more prudent to make a provision against this now."
The company said the delays were mainly due to government concerns about recycling animal products after the foot-and-mouth epidemic last year. Mr Etheridge predicted the company would not be able to scale up its compost business for two years, but added that developing a compost business continued to be a core part of Waste Recycling's strategy.
WRG, which operates more than 100 sites including 62 landfills, wrote off a further £1.4m of costs relating to planning and developing landfill sites because increased Government regulation has extended the amount of time it takes to receive planning permission to as much as five years.
The total exceptional costs of £4.9m dragged profits down by 51 per cent to £4.9m in the first half. Stripping out tax, goodwill and exceptionals, WRG saw underlying profit rise 7 per cent to £21.7m.
Nigel Sandy, the chief executive, said the group experienced a "distinct slowing" in June, which he attributed in part to the World Cup. He added business had picked up in July, leading to a position of "cautious optimism" about the prospects for the economy in the next few months.
The company, whose last chairman, Pat Barrett, left after only three months in the job, announced it has appointed James Newman, a non-executive director, to the position of non-executive chairman.
Despite problems caused by regulatory delays, WRG is set to benefit from the tightening up in rules governing the disposal of rubbish such as used fridges. Waste Recycling said it expected to dispose of 170,000 fridges this year because it has the right technology to comply with new European laws by removing potentially dangerous gases before burying the fridges in landfill sites.
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
PornHub turns masturbation into energy in bid to save the planet
Spiritual leader allegedly manipulated 400 men into removing testicles to be 'closer to God'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
'This is what Islam tells us to do': A rare glimpse inside a Saudi Arabian prison – where Isis terrorists are showered with perks and privileges
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
iJobs Money & Business
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...