Double digit growth for Augean

Oil field in the North Sea. Photo credit: Danny Lawson/PA Wire
Oil field in the North Sea. Photo credit: Danny Lawson/PA Wire

Specialist waste management firm Augean saw double digit growth in revenues and pre-tax profit as it continued to benefit from maintaining five different businesses in diverse markets.

The Wetherby-based​​ firm said that revenue increased by 27 per cent to £31.3m, from £24.7m the previous year, and that pre-tax profit was up 29 per cent to £3.1m, up from £2.4m, for the six months ended June 30.

Dr Stewart Davies, chief exec of Augean.

Dr Stewart Davies, chief exec of Augean.

Augean experienced strong performance within its Energy & Construction division, driven by significant increase in volumes of contaminated soils. The firm added that its Radioactive Waste Services division performed in line with expectations.

Dr Stewart Davies, chief executive officer at Augean, said: “I am pleased with the group’s performance in the first half of the year, where we delivered double digit growth in Group revenue and pre-tax profit, along with continued improvement in ROCE.

“We have seen the benefit of the group’s portfolio approach of maintaining five businesses in diverse markets, enabling us to optimise the performance in certain areas while continuing to deliver strong growth at a group level.

“The group enjoyed strong cash flow generation and remains well placed to take advantage of medium term investment opportunities that accelerate the strategy and are value enhancing for shareholders.”

The Industry & Infrastructure business, which includes the treatment of drill cuttings from the North Sea Oil & Gas market, experienced a disappointing first half. The business made an operating loss of £0.5m, in line with the same period in 2014.

It generated a negative EBITDA of £0.1m, compared to a positive EBITDA of £0.1m for the same period last year.

Industry & Infrastucture was adversely impacted by fluctuations in the oil price at its Avonmouth site, which accounted for £0.2m of the operating loss.

The firm reported a number of new medium and long term contract wins for Augean North Sea Services (ANSS), of which it purchased the remaining 19 per cent which it didn’t own earlier this year.

Dr Davies said: “With increased numbers of tier-1, long term and Total Waste Management contracts, the board remains confident in the group delivering its expectations for 2015 while continuing to deliver sustainable market positions and grow shareholder value.”