24th Sep 2013 11:05
LONDON (Alliance News) - Waste management services company Augean PLC said pretax profit increased in the recent half. However, Augean said full-year results will not reach expectations due to challenging hazardous waste transfer markets hurting its Waste Network division.
Augean said it now is seeking to sell the struggling division.
The firm reported pretax profit of GBP901,000 for the period ended 30 June, up from GBP540,000 a year earlier, while revenue increased to GBP23.4 million from GBP20.0 million in 2012.
Recent acquisition Augean North Sea Services performed strongly, posting revenue of GBP4.2 million and operating profit of GBP0.2million, of which 81% was attributable to the group.
The principal revenue drivers for the business were the management of drill cutting wastes from offshore oil-and-gas exploration, and the treatment and disposal of slops, it said.
However, the landfill resources and oil-and-gas services divisions saw revenue drop during the period, while the Waste Network division continued to perform poorly.
The division continues to make significant losses and consume cash, Augean said, and therefore plans are being prepared for the disposal, in full or in part, or closure if necessary, over the remaining three months of the year.
The sites and commodity trade at Cannock, Hinckley, Worcester and Rochdale will be made available to third parties either as a single package, or as separate units, as Augean seeks to maximise their divestment value.
Earnings before interest, tax, depreciation and amortisation before exceptional costs was GBP2.3 million, down from GBP3.3 million in 2012, generating cash flow from operations of GBP3.7 million, compared with GBP1.0 million.
It is not the policy of the board to pay interim dividends, the firm said.
The stock was trading at 40.00 pence Tuesday, down 4.00 pence or 9.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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