Questor share tip: Shanks well-positioned to ensure that where there's muck, there's brass The deal will not boost earnings for a couple of years, as many elements need to be constructed and put in place, but the contract puts Shanks in exactly the position it wants to be in to secure future growth. There will be no upgrades to forecasts, but the news is a boost for sentiment around Shanks" shares, which have been very volatile over the past year. The UK still has some way to go to meet recycling targets. In the year to April 2012, recycling rates in England hit an all-time high, according to the Department for Environment, Food and Rural Affairs. However, the speed at which the recycling rate is rising is at its lowest for 10 years, so councils are going to have to try harder to boost recycling levels as all the "low-hanging fruit" appears to have been picked. In total, 43pc of waste generated in England was recycled, reused or composed. The range was from a low 14pc at Ashford council to an impressive 69pc in the Vale of White Horse in Oxfordshire. The European Union has an overall target of 50pc of waste being recycled, reused or composted by 2020, so there is some way to go. Looking ahead, Shanks's next potential big news relates to a recycling contract with Derby council that it is angling to win. Further in the future, there should be an improvement in economic activity in the Benelux region, which will also be positive for earnings. Shanks currently has four UK municipal waste contracts in operation. These are in east London, Dumfries and Galloway, Argyll and Bute, and Cumbria. Facilities for its contract in Barnsley, Doncaster and Rotherham are currently under construction. Shanks" market backdrop is challenging, but the group continues to position itself well. The shares are trading on a March 2013 multiple of 19.2, falling to 14.2 then 11.2 over the next two years. The prospective yield is 3.8pc and the shares remain a buy for future growth in a market that is underpinned by regulation.