Ouch - poor rns28 Jan 2013 09:31
Pre-close Trading Update
Augean plc, one of the UK's market leaders in the management of hazardous waste, is pleased to update the market prior to commencement of its close period the ahead of the publication of its 2012 Full Year results on 26th March 2013.
Trading in the second half of the year delivered satisfactory performance despite delays in the delivery of the expected volumes for Low Level Waste (LLW). As a consequence the Full Year results are expected to be at the lower end of the Board's revised forecasts, with revenue expected to be in a range of £42.0m to £43.0m. However, the Board remains confident that the routes to the LLW market remain in place and will continue to develop as the challenges of unlocking volumes are met during 2013.
Revenues during 2012 were supported by the development of new business streams in industrial services, hazardous waste incineration and offshore waste management, whilst the Group's traditional hazardous waste markets were broadly flat throughout the year. Alongside LLW market development these new businesses are expected to continue to enhance shareholder returns during the coming year.
Strategic developments
The key strategic opportunities identified during 2010 have all now been delivered and the Group is well positioned for the next phase of its strategic development.
In September the Group announced that two significant contracts had been secured for disposal of LLW at East Northants Resource Management Facility (ENRMF), through the framework managed by Low Level Waste Repository Limited, as well as receiving numerous smaller enquiries. The pace at which volumes have been released from the relevant sites through this framework has been slower than originally planned, with a number of deliveries being delayed until Q1 2013, impacting the total value of LLW revenue secured during 2012. However, thanks to other LLW contracts the Board still expects LLW activities to make a material positive impact on the results for the full year.
The Group has completed the integration of the new businesses announced during the first half of the year and each is now well established in their respective markets and trading in line with management expectations. The activities at East Kent Waste Recovery Facility (incineration and energy recovery), Augean North Sea Services (offshore waste management) and Cooks Hole (minerals extraction) had limited financial impact during 2012 as they were being integrated, but all are expected to deliver profitable returns during 2013.
Sign In
Follow the stocks
