Revenues up but profits stagnate at Augean

HAZARDOUS and construction waste specialist Augean has increased revenues but pre-tax profits have stagnated as some of its divisions struggle in challenging markets.

Revenues for the half year to 30 June 2016 reached £36.8m, up 17.6% on the same period last year.

Pre-tax profits remained static at £3.1m following a difficult year in two of its divisions: North Sea and nuclear decommissioning.

Revenues for its energy and construction division (excluding landfill tax and intra-group trading) increased by 20% to £12.7m, with waste volumes up 45%.

Its infrastructure and integrated service divisions also showed revenue improvement, with the former returning an operating profit and 54% growth in revenues to £9.2m for the half year. The latter recorded a narrowed operating loss, to £200,000, half of its losses last year.

Augean was hit by the wind down in nuclear decommissioning spend by the Government. Income in that division dropped 53% to £600,000 for the first six months of 2016. In the same period last year it was dealing with 1,747 tonnes of low level radioactive waste – this year it was half that number.

The North Sea division was also hit hard by the challenging circumstances in North Sea oil industries. Revenue fell 26% to £6m with a £200,000 operating loss.

In May 2016, the group purchased Colt Holdings for an initial £9.2m as it seeks to diversify its offering.

Dr Stewart Davies, chief executive of the Wetherby-based group said: “The group has performed well in the first half of 2016, with particularly strong performances from its Energy & Construction and Industry & Infrastructure businesses.

“The group is well-placed to continue to take advantage of growth opportunities and to deliver profit growth for 2016, in particular due to additional APCR volumes secured in the first half and the integration of the Colt Holdings acquisition. Accordingly, the Board remains confident of delivering full year financial results in line with market expectations.”