LONDON (Alliance News) - Augean PLC Tuesday said adjusted pretax profit for 2013 is expected to be in line with the revised expectations adopted following half-year results when it said it had been hurt by its struggling waste network division.
In a pre-close trading update, ahead of its full-year results for the period ended December 31, 2013, the waste management operator said group revenues rose 13% to GBP47.8 million in 2013, compared with GBP42.2 million in 2012. This was driven by a strong second performance from its continuing operations.
Last year, the firm decided to sell its underperforming Waste Network division.
This process is well advanced, Augean said, with a number of offers received for the assets and goodwill of the division and two sale transactions underway.
These transactions are expected to conclude during the first quarter of 2014.
The sites being sold as going concerns are continuing to trade whilst the sales process concludes, Augean said. However, the Waste Network division has now closed, and the targeted GBP1.0 million per annum of overhead reductions have been included in the company's 2014 plan.
Following the Waste Network closure, certain assets were retained and a new business, Augean Integrated Services (AIS) established. AIS began operations this month and will be focused on clients requiring total waste management services, utilising Augean's expertise in the management and disposal of hazardous wastes, it said.
In the continuing operations of the group, the Land Resources division performance improved strongly during the last quarter after a quiet summer period, as did the Oil and Gas Services arm.
During the year, Augean said it invested in assets to support generation of future revenues and cash flows. Capital investment exceeded GBP6.0 million as the group strengthened its capabilities in the growing specialist waste markets around treatment of ash from energy-from-waste incinerators and North Sea oil and gas exploration.
This investment, and the now-anticipated slight delay in receiving proceeds from the sale of the Waste Network division assets, resulted in net debt at the end of the period rising to around GBP8.5 million from GBP6.1 million in 2012.
Augean said it expect this level of debt to be reduced during 2014.
The firm will publish its full 2013 results on March 25.
The stock was trading at 45.00 pence Monday morning, down 1.00 pence or 2.2%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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