In the current economic climate the waste market is under increasing pressure. Reduced waste volumes and a fragmented landscape with too many operators have caused downward pressure on prices.
Increased Operating Costs
In a difficult trading environment, significant increases in the landfill levy and fuel costs impacted negatively on margins.
Falling Waste Arisings
Demand from key commercial markets remained suppressed, with waste arisings continuing to fall. The average yield per serviced household also decreased.
European Union (EU) and local Government regulation continues to affect the business in the short term. Of particular significance is the EU Landfill Directive for reduced landfill volumes and the landfill levy increase. As Resource Recovery’s landfill diversion increases this will become less of a challenge for the business.