City File: Shanks & McEwan to face flak

Shanks & McEwan, the Glasgow-based waste-management company, will have to face a certain amount of flak at its finals this Thursday. In June, it announced a pounds 19.3m charge against its 1992-93 profits to cover debts and reconstruction of its contracting arm. Given profits of only pounds 2.32m last year, the division has exceeded even the core business in its ability to sink stuff in holes in the ground.

But the good news is Shanks & McEwan will make about pounds 29m overall, implying that the three waste divisions have picked up in the second half. At 156p, the shares are a buy.