Profits up for specialist waste management group

Listed specialist waste management business Augean has seen its adjusted revenue before Landfill Tax decrease by 8% to £37.9m (2020: £41.4m) in its interim results for the six months ended 30 June 2021.

The Wetherby-based company also says its adjusted pre-tax profits increased 19% to £10.1m (2020: £8.5m) in the same period, while adjusted EBITDA rose by 7% to £14.2m (2020: £13.3m).

All of Augean’s sites have remained fully operational so far this year, with safe working measures in place to mitigate the impact of Covid-19

The business achieved  sales growth of 20% in Treatment and disposal with strong growth in all waste streams.

And it managed robust growth of 20% in residues from Energy from Waste (EfW) and other incinerator plants, as a result of annualised growth and new contracted plants coming online.

Augean says industrial waste volumes have increased as the market has reopened, with volumes now approaching pre-pandemic levels. Volumes remain on course to exceed prior year.

But it points out that nuclear decommissioning, which is a long-term growth market, remains subdued as operators are taking a cautious approach to reopening.

Jim Meredith

Jim Meredith, the company’s executive chairman, said: “The Group has delivered pleasing growth in our core markets in the first half. 

“We anticipate this to continue in the second half with full year results therefore anticipated to be in line with our expectations.”

In its outlook, Augean says further growth is being targeted in its core markets of Energy from Waste and construction soils.

It highlights a “subdued” market for North Sea Services, with no new significant decommissioning project expected in 2021

The company’s Board notes that it expects to meet management expectations for the full year.