AUG.L Regulatory News (AUG)

Augean plc

("Augean" or "the Group")

Pre-close trading update

Augean, one of the UK's leading specialist waste management businesses, provides the following update prior to commencement of its close period, ahead of issuing its preliminary results for the year ended 31 December 2014.

2014 Group performance

The Group performed well in the second half of 2014, and confirms that underlying profit before tax is expected to be in line with market expectations.

Net debt, as at 31 December 2014, is lower than market expectations. This is due to cash received by the Group of £1.2million, in respect of the settlement of litigation in December 2014, and total cash received of £0.8million from the issue of new shares, to satisfy the exercise of share options, during the period September 2014 to December 2014.

Business unit performance

The Group operates five business units, in a diverse range of markets. The 2014 performance of those businesses is summarised as follows:

· Strong performance from Energy & Construction throughout 2014, with additional contracts won during the year and an increased level of tonnage sent to landfill, without significant abatement in the period leading up to Christmas 2014, as the weather remained mild;

· Successful first full financial year for Radioactive Waste Services as a separate business unit, with the attainment of a place on the Low Level Waste Repository Waste Treatment Services Framework and growth in the business arising from nuclear decommissioning;

· Continued improvement in revenue and profit from Industry & Infrastructure;

· Strategic traction from the newly formed Augean Integrated Services business seen in the delivery of consultative total waste management solutions and increasing visibility of commercial growth through the East Kent High Temperature Incinerator during the second half;

· Significant growth in revenues and operating profit from Augean North Sea Services ("ANSS") compared to 2013, with this trading performance seen throughout the second half of 2014, including December 2014 and continuing to date.

Impact of oil prices

At the current time, none of our operations appear to have been affected by the recent decline in oil prices. However, whilst some benefit may accrue to other parts of the Group, we note the reduced activity of some oil companies in the Aberdeen area, and acknowledge the potential risk to the ANSS business of reduced drilling programmes if oil prices remain at their current levels or fall further.

Dr Stewart Davies, Chief Executive Officer commented:

"2014 was the first full year of trading since the announcement of the Group's new strategy. We have seen the strategy gain traction during 2014, with an extremely encouraging performance for the year, which we expect to be reflected in 2014 earnings and cash flow compared to 2013. Despite the adverse conditions currently seen in one of the markets in which we operate, we continue to see benefit from the diversity of the sectors that we serve and from our ability to provide an integrated offering to our customers, from energy-from-waste to nuclear decommissioning and high value manufacturing. We are well positioned to continue the delivery of our strategy and to further strengthen our position in specialist waste markets"

The Group's preliminary results for the year ended 31 December 2014 are expected to be announced on 24 March 2015.

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