“Mixed” results for waste management firm

Augean, a specialist waste management businesses, also saw operating profit before exceptional items decrease by 8% to £3.3m.  

The period to June 30 saw two contract awards for Radioactive Waste Services and an increase in Total Waste Management contracts. The total volume of waste disposed by the energy & construction business decreased by 23.7% despite strong growth, as expected, in the more profitable APCR volumes of 17.6%

There will now be a continued focus on diversification of revenue streams in Augean North Sea Services.

The interim results follow an announcement in August that the company was under investigation by HMRC as to whether it had paid sufficient land fill tax in relation to its treatment and disposal of hazardous waste.

It has been notified of an assessment by HMRC for landfill tax of £1.9m with interest of £0.2m for the three months ended August 31, 2013.

In its interim report, the company said: “Based on the legal and other advice received by the Group over several years, Augean is very confident that the Group has met its obligations in respect of landfill tax, consistent with the law and official guidance at the time.  

“We believe this has been issued in order to protect HMRC against that period falling out of time (a four year look back applies for landfill tax) whilst they undertake further enquiries and discussion with Augean. The Group believes this assessment to be without merit and an appeal is ongoing.”

Dr Stewart Davies, chief executive, said: “The Group has had a mixed first half of 2017, with improved performance from its Radioactive Waste Services and North Sea Services businesses offset by losses in its Industry & Infrastructure business primarily due to a legacy Colt contract.

“The group will continue to challenge the recent HMRC assessment. We expect to deliver full year financial results broadly in line with market expectation albeit the uncertain environment caused by this assessment is unhelpful.“