Double digit growth for hazardous waste firm Augean
WETHERBY-BASED hazardous waste management firm Augean has reported double-digit growth across the board.
The firm has been undergoing a strategy transformation which has diversified the business.
Revenues increased to £31.3m, up from £24.7m for the same half year in 2014, to 30 June.
Pretax profit increased 29% to £3.1m in the first half, up from £2.4m in 2014.
Dr Stewart Davies, chief executive officer of the Wetherby-based firm, and group finance director Richard Laker spoke the TheBusinessDesk.com. They said: “I think the headline message is that 20 months into new strategy we have full traction and momentum delivering results .
“We’re working in diverse markets which brings us stability. Operationally we’re doing encouraging things we’re moving away from broker work and into contractual agreements especially with our tier one customers and long-term customers, and adding support services for them.
“There is so much growth opportunity on site services and we’ve won some great contracts, which says to me that we’ve got a good strategy.
The firm which employs 343 staff, up from 279 in 2014, has been particularly strong in the energy and construction sector, due to an upturn in the industry in the first half of the year.
Dr Stewart and Mr Laker said: “The energy and construction sectors have seen a boom in the first half. Construction on brownfield sites has increased and so has demolition. This uptick in construction meant volumes were much higher and thankfully we had the infrastructure in place to deal with it.
“The radioactive materials division is different. Our work there is decided by the Nuclear Decommissioning Authority, so it’s slow and steadier, as it is the government that is driving it. Business there was in line with the first half, but may fall marginally short.”
Augean was vulnerable to the low price of oil due to its activities from its Aberdeen office in the North Sea, but, said chief executive Dr Davies:”Our North Sea services had a terrifically strong first half as we expected. The second half might slow as drilling activity declines due to the declining price of oil, but we’re positive that the Aberdeen business has a broadened range of businesses and services.
“We’re helping our clients address supply chain costs and provide a wider range of services, and helping customers gives us a growth angle.”
Growth is something the firm is keen on, after proving their credentials as an adaptable firm in what can be volatile industries.
Dr Davies and Mr Laker finished: “Our strategy for Augean has lots of organic growth potential. We’ve achieved double digit profit growth again this year, and we’re open to M&A activity on top of that, so we have shown that shareholder value will accelerate and we can deliver.”