Waste management group looks ahead to further growth

WASTE management group Augean today said it expects further growth and improvements in its business as it announced an increase in both profit and revenue.

In its preliminary results for the year to December 31 2013, the Wetherby-based business reported adjusted pre-tax profit of £3.2m (2012: £2.6m) and said revenue from continuing operations increased by 19% to £43.5m.

Yesterday, the group announced the sale of its Waste Network business and earlier this month completed a £15m refinancing.

Dr Stewart Davies, chief executive officer, said: “While Augean underwent a number of operational and strategic changes during 2013, the group delivered a robust financial performance with increases in revenue and profit from continuing operations. The board believes that the group is well placed to benefit from the significant investment it has undertaken in new businesses and assets, the sale and closure of underperforming activities and any increase in the volume of waste management activity, backed by a general UK economic recovery.
 
“The group has an established position in a number of key waste markets, including hazardous waste treatment and disposal, Air Pollution Control Residues management, low level radioactive waste disposal and North Sea oil and gas. With improving underlying performance across the whole group and the benefits of lower overhead costs the board expects further growth in EBITDA, operating profit and cash flows during the year.

“The newly developed strategy for the business, focused on key markets and a more service-led approach to customers, is expected to provide opportunities to deliver a material improvement to adjusted profit before tax in the coming 12 months.”
 
Jim Meredith, non-executive chairman, added: “I believe that Augean is stronger now than at any point during the past five years.”

Augean has proposed a 40% increase in the dividend payment to 35p per share.

Meredith added: “With improving economic conditions in the UK, a refreshed strategy and several new opportunities under development I look forward to another year of growth and enhanced returns for shareholders during 2014.”