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25 Jul 2017 07:00
25 July 2017
Augean plc
("Augean" or "the Group")
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 2017.
Half Year Group performance
Profit performance for the first half was broadly in line with the prior year. The Group has recently instigated a cost reduction programme which is expected to generate annual savings of around £2m from August. The expected one-off cost of around £0.7m will be shown as an exceptional item in the full year results. Overall the Group expects to deliver full year profit growth, although the outcome is likely to be at the lower end of market expectations.
Business unit performance
The Group operates five business units, in diverse markets. The performance of those businesses in the first six months of 2017 is summarised as follows:
Air Pollution Control Residue (APCR) volumes within Energy & Construction have continued to grow in line with expectations, while as expected, volumes of other materials were lower, leaving profits marginally down overall.
Performance from Radioactive Waste Services (RWS) has improved strongly, as anticipated, with prospects positively impacted by two significant contract awards with total revenue of £4m, at typical RWS margins, over the next two years. The waste on the first of these began to move at the start of the second quarter.
Trading within the original Industry & Infrastructure (I & I) business has been robust and in line with management expectations although the performance of Colt (which is also now part of I & I) has been disappointing. This has been caused by losses on one major legacy contract within Colt which has set back overall I & I performance. This contract is ongoing and negotiations are expected to complete by September, with an anticipated positive impact on Colt and I & I performance in the second half.
Integrated Services is flat year-on-year with Total Waste Management (TWM) meeting expectations and the East Kent High Temperature Incinerator reaching breakeven by the end of the half.
North Sea Services has continued its good performance from the second half of 2016 and was profitable in the first half of the year compared with a £0.3m loss in the first half of 2016.
The Group's interim results for the six months ended 30 June 2017 will be announced on 19 September 2017.
Ends
For further information, call:
Augean plc
Augean plc Dr Stewart Davies, Chief Executive Officer Mark Fryer, Group Finance Director
| 01937 844 980 |
N+1 Singer Shaun Dobson Alex Price
| 020 7496 3000
|
FTI Consulting Oliver Winters Fiona Walker
| 020 3727 1840 |
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