LONDON (Alliance News) - Waste management business Augean PLC Wednesday said group revenue rose 6.4% in the first half, with growth in each of its five business divisions, despite the first quarter being hit by one-off issues.
The company's five reportable divisions are: Energy & Construction, Integrated Services, North Sea Services, Radioactive Waste Services and Industry and Infrastructure.
Augean said group revenue rose to GBP24.9 million from GBP23.4 million a year earlier, with the Energy & Construction division leading the way.
The company said the Energy & Construction division continued to grow the volumes of air pollution control residues from energy-from-waste customers treated at its East Northants and Port Clarence sites, as well as the volumes of hazardous waste for treatment and disposal.
Augean said the Energy division's pipeline of work for the remainder of the year suggests that expectations for 2014 could be exceeded.
In addition, the radioactive waste services delivered an increase in the volumes disposed. Augean said a total 2,453 tonnes were received in the first six months, with the pipeline of work for the remainder of the year also suggesting that expectations for 2014 could be exceeded.
Last month, Augean said its North Sea Services arm suffered a slow start to the year as drilling activity was curtailed in the North Sea by poor weather conditions. The company said the business made a strong recovery from that early position during the second quarter, gaining incumbency on new drilling operations and further expanding onshore waste management activities and is now in line with its plan for the year.
The Industry & Infrastructure division also had its own problems during the year and was hurt by a slow-down in drill cuttings volumes during the first quarter. However, performance across the three processing sites remained sufficient to deliver a year-on-year improvement to operating losses and results for the first six months were satisfactory, the company said.
Financially, net debt at the period-end rose to GBP8.9 million from GBP8.5 million a year earlier. Nonetheless, Augean said this is "well within" the headroom available from its loan facilities.
"While the first quarter was impacted by a number of one-off issues, the overall performance in the second quarter and pipeline of work in the Energy & Construction and Radioactive Waste Services divisions give me confidence in delivering the strategy announced in March," Chief Executive Stewart Davies said in a statement. "The group continues to trade in line with market expectations for the full year."
The group's full results for the half year ended June 30 are expected to be announced on September 23.
Augean shares were untraded Wednesday morning. It last traded at 45.00 pence.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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