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24 Jul 2018 13:06
Augean plc
("Augean" or "the Group")
Trading update
Augean, one of the UK's leading specialist waste management businesses, provides the following update ahead of issuing interim results for the six-month period ended 30 June 2018.
2018 performance
In the first half the Group has benefitted from increased ash volume from Energy from Waste plants, nuclear and North Sea decommissioning and significant cost reduction. The loss-making activities of Colt Industrial and Augean Integrated Services have been sold. First half profit is ahead of prior year by over a third on a like for like basis* and the Group expects to deliver full year profit growth at least in line with market expectations. Net debt at 30 June 2018 was £2.7m compared with £10.8m at 30 December 2018, with current expectation to be debt free by year end.
HMRC Update
Having taken legal advice confirming its position, Augean continues to believe that the Landfill Tax (LFT) Assessments received to date are to protect HMRC's four-year lookback. Augean is maintaining positive discussions with HMRC in an effort to resolve the matter. The Group will robustly challenge the LFT Assessments that it has or may receive from HMRC, through the tax tribunal system if appropriate. Augean continues to work with stakeholders in the waste and other affected industry sectors about the broader adverse implications for the continued and necessary proper treatment of hazardous waste.
Jim Meredith Executive Chairman, commented:
"Pleasingly the first half of 2018 has delivered significant and sustained progress having, as anticipated, grown sales in key strategic markets, whilst removing some unprofitable activities from the business, reducing the business cost base and driving cash generation to deliver significant debt reduction. The team at Augean have achieved this whilst responding to HMRC's LFT Assessments and to that end should be commended. I would like to thank them all for their efforts. Notwithstanding the ongoing HMRC matter, the Board remains confident in the prospects for the full year at least in line with expectations."
The Group's interim results for the six months ended 30 June 2018 are expected to be announced on 18 September 2018.
* for continuing operations (excluding AIS and Colt)
- Ends -
Enquiries:
Augean plc Jim Meredith, Executive Chairman Mark Fryer, Group Finance Director
| 01937 844 980 |
N+1 Singer Shaun Dobson Jen Boorer
| 020 7496 3000 |
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