Simpler business to create success for waste management firm
HAZARDOUS waste management company Augean is confident its “simpler” business model will create opportunities to accelerate its growth.
The West Yorkshire business, based in Wetherby, announced an increase in both profit and revenue in its preliminary results for the year yesterday, and said its focus on its higher margin business areas will help it continue its strategy.
The group operates through three divisions, Land Resources, Waste Network and Oil & Gas Services, and a subsidiary company, Augean North Sea Services. This week, it announced the sale of its Waste Network business, which resulted in exceptional impairment charges of £4m.
Richard Allen, group finance director, said: “It is now a much more simpler business focusing on the growing areas. We’ve significantly reduced the complexity of the group.
“The businesses we are now focused on have higher margins. The waste network was of low margin and we are no longer requiring that extra effort for that business. The impairment charge from the sale of the business is non-recurring, so is now dealt with.”
Part of the division was retained by the company and used to form a new arm, Augean Integrated Services, with operations based in Staffordshire.
Augean says this strategy for growth focuses on markets where it sees the best opportunity to secure long-term contracts with tier one blue chip companies. It said its North Sea Services arm has already provided a good track history for this strategy, working with companies such as Shell.
Chief executive officer, Dr Stewart Davies, said: “There are some growing sectors which we are very well aligned with. We can see opportunity and more growth in these areas.”
In its preliminary results for the year to December 31 2013, the business reported adjusted pre-tax profit of £3.2m (2012: £2.6m) and said revenue from continuing operations increased by 19% to £43.5m.
AIM-listed Augean was founded in 2004 and specialises in hazardous waste management. It operates sites across the UK and owns 50% of the UK hazardous waste landfill capacity.
Commenting on the results, non-executive chairman, Jim Meredith, added: “I believe that Augean is stronger now than at any point during the past five years.”
