Profits down by 10% at Attwoods

ATTWOODS, the waste management company where Sir Denis Thatcher is a non-executive director, yesterday reported a 10 per cent fall in taxable profits to pounds 38.7m for the year to 31 July.

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.

(Photograph omitted)

PROMOTED VIDEO
Sport
Malky Mackay salutes the Cardiff fans after the 3-1 defeat at Liverpool on Sunday
footballFormer Cardiff boss accused of sending homophobic, racist and messages
Sport
Rodgers showered praise on Balotelli last week, which led to speculation he could sign the AC Milan front man
transfers
Life and Style
life – it's not, says Rachel McKinnon
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
Arts and Entertainment
Arctic Monkeys headline this year's Reading and Leeds festivals, but there's a whole host of other bands to check out too
music(who aren't Arctic Monkeys)
News
Lizards, such as Iguanas (pictured), have a unique pattern of tissue growth
science
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Test Lead (C#, Java, HTML, SQL) Kingston Finance

£40000 - £55000 per annum: Harrington Starr: A Global Financial Service Organi...

Access/Teradata Developer, Banking, Bristol £400pd

£375 - £400 per day: Orgtel: Access / Teradata Developer - Banking - Bristol -...

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home