LONDON (Alliance News) - Waste management business Augean PLC said Tuesday it expects to deliver annual profit growth "at least" in line with market views, as like-for-like profit in the first half is "ahead of prior year" by over a third.
The company added that, during the first half of the year, it sold its loss making units, Colt Industrial and Augean Integrated Services.
Augean said it is maintaining positive discussions with Her Majesty's Revenue and Customs department in an effort to resolve the matter arising around the Landfill Tax.
In April, the company said it will continue to battle claims from the UK taxman after it was issued with GBP37.6 million worth of tax assessments.
The assessments cover Augean North Ltd and Augean South Ltd in the periods October 2013 to July 2017 and August 2013 to August 2017, respectively.
"The group will robustly challenge the Landfill Tax Assessments that it has or may receive from HMRC, through the tax tribunal system if appropriate," it added.
The company said that it still believes it has paid landfill tax correctly and continues to defend its position that HMRC has no claim.
Chairman Jim Meredith said: "Pleasingly the first half of 2018 has delivered significant and sustained progress having, as anticipated, grown sales in key strategic markets, whilst removing some unprofitable activities from the business, reducing the business cost base and driving cash generation to deliver significant debt reduction."
The company will publish its interim results for the six months to June 30 on September 18.
Augean shares were trading up 18% at 42.40 pence each.
