60 jobs at risk as waste group looks to bin Hull site

Sixty jobs are at risk as waste management business Augean looks to close a Hull-based division it acquired just two years ago.

Colt, which provides a range of industrial services to customers including major industrial companies, oil refineries, rail and utilities, such as specialist tank cleaning and high pressure jetting, was acquired by Wetherby-based Augean in 2016 in a £14m deal.

It has been based in Hull for 25 years.

Augean this morning gave an update in relation to its ongoing restructuring programme programme following the company’s announcement in March that it could not continue to invest in assets that did not generate suitable returns.

Augean said that Colt has not provided the “positive improvement required”, having incurred a loss of £600,000 year to date.

The company has decided to consult with staff to investigate options to strengthen and support other profitable areas of the industrial services business across the group (turnover almost £15m with 75 staff operating out of seven sites) through the potential re-allocation of Colt assets.

Augean said it is also seeking to reduce its costs through the potential closure of the Colt offices and disposal of unwanted assets. This consultation will take 30 days and could impact up to 60 staff, while the Hull site could also be sold.

“The income statement impact of closure of the Hull site and any associated redundancy costs could be approximately £1.6m with net cash receipt expected of £1.3m,” the company said.

“The Colt operation is expected to be classified as a discontinued operation for both the half and full year accounts and will include the loss to date of £0.6m as well as the potential closure cost of £1.6m.”

Augean said that elsewhere, the board is encouraged by group trading and is confident that this remains in line with market expectations.