AUG.L Regulatory News (AUG)

24th July 2012

Augean plc

("Augean" or "the Group")

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 ahead of issuing its half year results for the 6 months ended 30th June 2012.

Trading during the first half of the year has been in line with the Board's revised expectations despite limited growth in the Group's traditional waste markets. This has been supported by a strong performance from the Land Resources division during the first quarter of the year, with total waste volumes into the Group's landfill sites increasing 6.7% during the first six months to 192,087 tonnes (H2 2011: 179,952 tonnes).

On 23rd July the Group received notification that the application for permission to appeal to the Supreme Court against the decision by the Secretary of State to allow disposal of Low Level Waste at East Northants Resource Management Facility (ENRMF) had been refused. This concludes the legal process and confirms that the original planning permission was lawful.

The Group has now secured two contracts for the disposal of LLW, through the framework managed by Low Level Waste Repository Limited. Numerous enquiries have also been received from new customers for smaller volumes and the Board is therefore confident of delivering the forecast 2,000 tonnes for the year, weighted towards the second half.

Management has continued to focus on improving the performance of the new Waste Networks and Oil & Gas Services divisions and is pleased to announce the appointment of a new Director to run the Waste Network division. Trading in these divisions remains challenging but the Group has made good progress to deliver the integration of the new businesses announced during the first half of the year. The activities at East Kent Waste Recovery Facility (incineration), Augean North Sea Services (offshore waste management) and Cooks Hole (minerals extraction) are all now trading as planned.

Investment in the new businesses, offset by positive cash flows from operations and control of capital expenditure, led to an increase in net debt at the end of the period to approximately £6.6m (H2 2011: £4.0m), including normal capital expenditure and the £2.05m share purchase and £1.0m loan to Augean North Sea Services.

As announced in the 2011 Annual Report, Roger McDowell resigned as Chairman of the Board following the Annual General Meeting on 8th June 2012, retaining his role as a non-executive director. The Board is pleased to confirm the election of Jim Meredith as Chairman of the Board.

The Board is also pleased to confirm that, following hearings in the High Court on 18th and 27th June, the capital reduction of Augean plc was confirmed on 4th July. The share premium account of the company (valued at £114.9m) will be cancelled and reflected in the Group's accounts for the year ending 31st December 2012.

Commenting on the first half of the year Paul Blackler, CEO, said:

"We have continued to make considerable progress with the delivery phase of our strategic opportunities during the first half of the year. To date we have secured two contracts for the disposal of Low Level Waste and we have successfully integrated the new businesses at East Kent Waste Recovery Facility, Augean North Sea Services and Cooks Hole. Trading has been in line with revised expectations and we have taken action to mitigate the challenging environment in the Group's traditional waste markets."

The Group's half year results to 30th June 2012 are due to be announced on 25th September 2012.

- Ends -

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