Revenue and profit climbs for listed waste management business

Augean, the Wetherby-based waste management company, has seen its revenue before landfill tax increase by 40% to £44.2m.

It compares to 2018’s adjusted revenue figure of £31.6m, and features in the company’s interim results for the six months ended 30 June 2019, released today.

The same results for Augean also show profit before tax increased 100% to £9.6m (2018: £4.8m), the adjusted EBITDA measure of profitability increased by 71% to £14.2m (2018: £8.3m) and adjusted basic earnings per share increased by 114% to 7.61 pence (2018: 3.56p).

Reacting to the results, Jim Meredith, Executive Chairman, said: “The Group has delivered strong results in all areas of the business with cash generation especially pleasing. We remain confident in the Group’s prospects for a full year result and anticipate results ahead of market expectations.”

Augean reported good sales growth in all sites with Treatment and Disposal up 39% and North Sea 43%.

The business said it had seen “double digit growth” from residues from Energy from Waste (EfW) and other incinerators plants, despite delays in plants commissioning. 

And it forecast further expansion for its activities, targeted in the core markets of Energy from Waste and North Sea Decommissioning, with its Board expecting to exceed market expectations for the full year.

Augean also said it had now received proceeds worth £3.35m from the sale of its mothballed East Kent Incinerator.

Earlier this week, Augean said it had delayed any payments of its HMRC landfill tax bills until a tribunal concludes.

The company was issued bills totalling £34.7m across its Augean North and Augean South businesses in April, but said it had “received confirmation that hardship has been granted for the assessments received by Augean South.”

It received a hardship notification for Augean North Limited in February.

The business will not have to pay up before the conclusion of any tribunal. It continues to argue that it has correctly paid its appropriate share of landfill tax.