Augean confident despite profits fall

AUGEAN – the hazardous waste company- said today it was confident of meeting full year expectations despite a drop in profits.

Wetherby-based Augean said profit for the six months ended 30 June fell to £1.2m from £2m.

The company said the drop was a result of a £200,000 loss on its soil treatment operation joint venture and an increase in finance costs to £900,000 from £500,000 in 2007.

Revenue excluding landfill tax rose to £16.8m from £10.7m and underlying operating profit stood at £2.3m from £2.5m as a £400,000 increase in profit at the treatment division failed to offset a £600,000 drop at the landfill business.

Chief executive Paul Blackler said: “We have a better balance between our landfill business and our treatment business and have secured major contracts which will deliver a strong second half performance. As such, the board is confident that current year market expectations will be achieved.”

Last month Augean revealed it had received a number of preliminary takeover approaches.

Mr Blackler added that discussions with potential bidders were ongoing.

Augean has been active in the acquisitions market over the past year – growing rapidly by acquiring other businesses.