Settlement of dispute

13 July 2016

Augean plc

("Augean" or "the Group")

Settlement of dispute

In its preliminary results announcement on 22 March 2016, the Group indicated it was involved in a commercial dispute with a customer, which arose in the ordinary course of business, and the customer had indicated its intention to bring a claim against the Group in relation to that matter.

The Group has now settled the matter, without a legal claim being made, the detailed terms of which are subject to a confidentiality agreement. The total cost of the settlement, including amounts paid to the customer, adviser fees and other related costs, is approximately £1.1 million and will be treated as an exceptional item in the income statement of the Group. A cash outflow of £1.0 million occurs during 2016 and £0.1 million of cash outflow will occur in the first half of 2017, in respect of this settlement.

-Ends-

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