Profits down by 10% at Attwoods
The result, which was slightly below market expectations, reflected a sharp downturn at the group's North American operations, where profits before interest slumped from more than dollars 58m ( pounds 35m) to about dollars 44m despite a 12 per cent jump in underlying sales to dollars 305m.
Earnings per share slipped from 12.4p to 8.06p but the the total dividend has been maintained at 5p.
The profits fall was blamed on Mindis, the metal recycling arm, which was hit by weak metal prices. Although Mindis's sales were virtually unchanged at dollars 123m, its trading profits collapsed from dollars 16m to dollars 2.5m. However, the company believes that Mindis's performance is unlikely to deteriorate further.
Attwoods, which is 30 per cent controlled by Laidlaw, the Canadian waste group, said its North American results masked significant regional variations. Whereas the profits from the mid-eastern US states were hit by the recession, Florida boosted its contribution significantly. Since the year- end it has received new contracts to clear up damage caused by Hurricane Andrew.
Profits from Adco, the group's continental European arm, boosted its profits by almost half to DM25m ( pounds 10.25m) thanks to strong growth in Germany and Holland and expansion in Belgium and Czechoslovakia.
In Britain, profits rose from pounds 3.1m to pounds 4.7m on turnover up from pounds 44m to pounds 51m. However, the company warned that last year's growth may not be matched this year unless the UK economy stages a recovery.
The group has taken a pounds 6.2m extraordinary charge against the potential impact of a federal government inquiry into alleged overcharging by its managers in some east coast states several years ago.
The company informed shareholders of the inquiry last year, but Ken Foreman, Attwoods' chairman, said yesterday: 'The problems relating to this investigation have proved more difficult to resolve than we originally envisaged. Whilst the investigation continues, the company has taken the prudent decision to make refunds to those customers affected since 1981.'
The group incurred total capital expenditure of pounds 68m last year, almost half the previous year's total. Thanks to an pounds 80m rights issue last December, net debts as a proportion of shareholders' funds have fallen from almost 92 per cent to 36 per cent.
But the rights issue nearly flopped, triggering a slide in the share price. In the past six months it has slumped from around 175p to 104p, down 9p yesterday.
City analysts are looking for about pounds 40m in taxable profits this year. Attwoods recently won a 10- year waste collection contract in the Dominican Republic.
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
The Sistine Chapel is set to be illuminated with thousands of LEDs
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Cheryl Cole named 'the most dangerous celebrity' on the internet
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...