Augean sees future benefits of waste

HAZARDOUS waste specialist Augean continues to face “challenging” conditions but is confident that as the economy recovers demand for its services will grow.

The Wetherby-based group, which earlier this week announced an end to a possible takeover approach that had first emerged last September, said in a pre close period trading update that it has traded in line with revised expectations announced in March.

While it said “economic conditions will remain challenging throughout the rest of this year”, chief executive Paul Blackler said: “Whilst it has been a challenging period, both corporately and within the waste management industry, we have worked extremely hard at extending our services to new markets, reducing our cost base and conserving cash.

“We believe that as the economy recovers, Augean, with its broad portfolio of waste management assets, is uniquely positioned to benefit from the comprehensive range of waste management services we have developed in order to generate long term value for our shareholders.”

Augean, which is due to announce its half year results in mid September, said that hazardous waste volumes into its landfill division were flat at 108,000 tonnes with prices remaining firm.

Its treatment division found trading conditions “particularly difficult” with many clients hit by the economic downturn.

The volatility in the UK market and the associated tighter controls that businesses have placed on cash preservation, have produced an overall reduction in industrial production and waste generation. We have taken action to reduce the division’s cost base to reflect the trading volumes and have focused all our efforts on providing an efficient and competitive service which, along with our investment in upgraded facilities, will bring a stronger second half performance.

Later this month Augean is submitting plans to manage low level radioactive waste at its landfill base in Northamptonshire.