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21 Jul 2016 07:00
21 July 2016
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 its interim results for the six-month period ended 30 June 2016.
Group performance
The Group confirms that performance for the year ended 31 December 2016 is in line with market expectations that were recently upgraded following the acquisition of Colt Industrial Services.
Business unit performance
The Group operates five business units, in diverse markets. The performance of those businesses in the first six months of 2016 is summarised as follows:
Continued strong performance from Energy & Construction, with growth seen across a broad range of waste streams. The significant increase in APCR volumes has been underpinned by a number of contract wins in the first half of the year;Performance from Radioactive Waste Services has been impacted by the sharp reduction in volumes from UK nuclear decommissioning that we have previously reported. This has continued through the first half of 2016; An encouraging performance from Industry & Infrastructure, which traded ahead of management expectations and delivered the planned profitability improvements at its Avonmouth site. The integration of the recently acquired Colt Industrial Services ("Colt") business is underway;Performance in Augean Integrated Services has been impacted in the first half of 2016 by below-plan availability at East Kent, which is being addressed through an operational improvement programme. Further recent contract wins with tier-1 customers provide increased confidence of a stronger operational and financial performance in the second half of the year;Augean North Sea Services ("ANSS") has achieved a number of significant contract wins in the first half including with two major oil & gas companies for services related to North Sea production; this is in line with the ANSS strategy of reducing its dependency on exploration drilling. Nonetheless, the financial performance of the business in the first half of 2016 was materially lower than in the same period in 2015.
Dr Stewart Davies, Chief Executive Officer, commented:
"Trading in the first half has been in line with management expectations. The performance within Energy & Construction, the Group's largest business unit, has been particularly pleasing with the growth in APCR volumes delivering a key strategic objective.
There has been significant progress in developing sustainable market positions across a broad range of sectors, both organically and through the acquisition of Colt. The Group's growing asset base and exposure to diverse markets enables us to manage short term headwinds within individual business units and the Board remains confident in the Group's ability to continue to grow shareholder value."
The Group's interim results for the six months ended 30 June 2016 are expected to be announced on 20 September 2016.
-Ends-
For further information, call:
Augean plc Dr Stewart Davies, Chief Executive Richard Laker, Group Finance Director
| 01937 844 980 |
N+1 Singer Shaun Dobson Richard Lindley Jennifer Boorer
| 020 7496 3000 |
FTI Consulting Oliver Winters Adam Cubbage | 020 3727 1000 |
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