16th May 2018 11:50
LONDON (Alliance News) - Waste management business Augean PLC said on Wednesday it will consult with staff to investigate options to re-allocate the assets of its loss-making Colt business across the group's Industrial Services unit.
Having incurred a loss of GBP600,000 in the year-to-date, Augean concluded that Colt did not have the potential to generate appropriate returns in the medium term.
Augean is also looking to reduce its costs, through the closure of Colt offices and disposal of unwanted assets. The consultation is expected to take up to 30 days with 60 staff in Colt lined up to be affected.
The impact of closing the Hull site and any associated redundancy costs could reach GBP1.6 million, and the Colt site will be classified as a discontinued operation.
Shares in Augean were up 2.4% at 33.79 pence on Wednesday.
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