9 January 2019 – trading update

The specialist waste management group has provided a trading update for the year to 31 December 2018 and this has revealed that the company traded strongly in the second half of 2018.  As a result the group expects to meet the upgraded market expectations for the year when it reports on 26 February.  The group has ended the year with higher levels of net cash than market expectations as this totalled £8.2m (2017: net debt £10.8m).  Although this statement is clearly encouraging, the share price has risen significantly since the beginning of November (when it was around 45p) and we remain cautious on the outstanding demands from HMRC to which we have referred before.  We therefore rate the shares as a HOLD.