15 November 2016 – trading update/resignation of CEO
Although the company announced new contracts worth £40m with the UK Government earlier in the week, it has also revealed that chief executive Adrian Ringrose is to leave the company once a successor has been identified and appointed. This is expected to happen next year. The group also announced that trading is in line with expectations with a better performance overseas expected to make up for a difficult UK market. The Energy from Waste business is still a major issue and the company has now been served notice that its Glasgow project, which has already been the subject of a serious provision, has been terminated. The group has stated that it is considering the implications of this with its legal advisers and it will comment further in due course. This has caused a large degree of uncertainty and the share price has fallen sharply as a result. Despite this decline there is too much risk in the shares to recommend a buy at the moment and so we move to HOLD.