(Alliance News) - Waste management company Augean PLC on Tuesday said it has extended its loan facilities and has decided to pay its entire outstanding GBP40.4 million UK landfill tax assessment and interest accrued to date.
The company has paid the outstanding tax assessments to stop any further accrual of interest and to allow the company to receive appropriate corporation tax deduction and focus on further growth and development of the business.
Augean said it will continue to dispute the tax assessments through the UK tax tribunal system with the first hearing expected to be heard in 2020.
Executive Chair Jim Meredith said: "Based on legal advice received, we maintain our position that we have correctly collected and paid the appropriate landfill tax, and we will continue to robustly challenge the assessments received through the tax tribunal system. Nonetheless paying these assessments fully will enable the group to focus on implementing its strategy for creation of further value."
Augean has renewed and upgraded its banking facilities with HSBC UK Bank PLC. Under the amended loan facilities, the company may draw down a revolving credit facility of GBP20 million and additional loans up to GBP20 million
The new loan facilities are for a three year term with the flexibility to be extended for a further one or two year term.
Augean shares were up 5.6% at 187.45 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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