(Alliance News) - Waste manager Augean PLC on Wednesday reported a doubling in interim profit after strong revenue growth.
Pretax profit, adjusted for the landfill tax in the UK, for the six months to June doubled to GBP9.6 million, while revenue prior to the tax climbed 40% to GBP44.2 million.
Including the tax, revenue was up 45% to GBP52.4 million, and pretax profit climbed 48% to GBP9.3 million.
Augean's cash position has grown significantly, with net cash at the end of June GBP22.8 million, up from GBP8.2 million at the end of December.
"The group has delivered strong results in all areas of the business with cash generation especially pleasing," said Executive Chair Jim Meredith.
"We remain confident in the group's prospects for a full year result and anticipate results ahead of market expectations."
The Treatment & Disposal business registered a pre-landfill tax revenue of GBP30.5 million, up 39% year-on-year, helped by strong radioactive waste volumes and new contract wins in treatment.
North Sea Services, while mainly deals with waste from drilling in the oil and gas sector, grew revenue by 4% to GBP13.7 million, mainly due to new customer wins.
During the period, Augean mothballed the East Kent incinerator operations after a review. The site was sold for GBP3.4 million in January.
On Monday, Augean had reaffirmed its belief that it owes the UK taxman no more landfill tax, having received a bill of GBP34.7 million. The tribunal is scheduled to begin in the first half of 2020.
While this tax dispute is taking place, Augean will not be paying dividends.
Shares were up 0.6% on Wednesday at a price of 118.25 pence each.
