Embattled Augean to be ‘materially ahead’ of expectations

Despite facing major payouts to HMRC over the amount of landfill tax it paid, Wetherby-based waste management firm Augean has announced an unexpectedly positive update.

The company said this morning that due to stronger group trading in the first quarter, profits for the year to 31 December 2019 are expected to be “materially ahead of market expectations.”

It says it has benefited from higher landfill volumes across most waste types, increased radioactive waste profit and strong performance of both the treatment and North Sea businesses.

Last week it was issued with a final assessment from HMRC for Augean South for £24.4m. Combined, it must pay out £34.7m to the tax office.

At the time, Augean said: “The Group continues to believe, based on legal advice, that it has paid the correct amount of landfill tax and that HMRC’s assessments are incorrect/unjustified.”

However it had agreed with HMRC to defer payments until a tax tribunal is undertaken in 2020, meaning it will not materially affect this year’s results.

The company is contesting the tax bill, and has appealed both the Augean South and Augean North assessments, saying it has paid its share of landfill tax.

Last year it disposed of loss-making divisions of the company, and despite the issues surrounding its landfill tax obligations, it saw pre-tax profits rise from £4.5m to £10.5m.

Augean will announce its interim results in July.