Construction and services company Kier Group continues to see potential in the recycling and waste management market.
In its interim results for the period from 1 January this year, the firm revealed that “pressures on government spending will only increase our opportunity in this sector”.
Waste falls into its support services division that also provides buildings maintenance, plant and street scene services. This division has a £2 billion order book and is providing a 4.5 per cent operating margin to the business.
The statement added: “We have secured a series of long-term contracts in East Northamptonshire (waste collection services), Gosport, Surrey, and Waltham Forest…The challenging environment within which our local authority clients are operating means that although we are currently negotiating a number of contract extensions, we believe that the delay in the award of a number of larger new contracts will, as predicted, last into 2012.
“Our Pure Recycling materials recycling facility in Ettington, Warwickshire, one of the largest in the UK, began operating ahead of schedule in March. This facility enhances our environmental business, which offers a fully integrated waste collection and recycling solution, assisting local authorities to achieve their recycling targets over the coming years.”
Overall, the company expects its end of year results due next week to be in line with expectations.