Specialist waste business Augean Group has reported a ‘significant’ increase in air pollution control residue (APCR) treatment and growth in integrated waste contracts in a 2016 trading update posted today (23 January).
And, the firm’s subsidiary – Augean North Sea Services – also performed strongly in the second half of the year despite a ‘loss-making’ first six months.
Augean’s operations include facilities to clean up contaminated soils
The trading update, published ahead of the preliminary financial results for the year ended 31 December 2016, has seen Augean confirm its underlying profit before tax performed ‘in line’ with market expectations and generated ‘strong net operating cash flows’.
Net debt for the Group as a whole stood at £10.8 million at the end of the year – £2.3 million better than it had expected.
APCR
Augean reported continued strong performance from its Energy & Construction portfolio, with further growth in APC residue volumes and a smaller than expected reduction in construction soil tonnages received at its sites from the ‘unusually high’ levels recorded in 2015.
Augean previously identified treatment of APCR – the material left over after the removal of hazardous pollutants from the energy from waste process – as a ‘growth area’ in April 2016 handling around 49,000 tonnes per year (see letsrecycle.com story).
Integration
Augean Integrated Services also continued to develop in 2016, with additional 3-5 year Total Waste Management contracts contributing to a top-line growth of over 35% for the subsidiary.
However, the firm’s East Kent High Temperature Incinerator in Sandwich – which burns ‘difficult to handle’ waste streams at 1200°C – did not achieve breakeven in 2016 and an operational improvement programme at the site is expected to ensure increased levels of plant availability going forward.
North Sea
Elsewhere, the update indicates Augean North Sea Services saw a rocky start to 2016 but ‘traded strongly’ in the second half – with additional contract wins helping to offset continued reduced market activity in its drilling waste management business.
In November, the company announced it would be investing in a waste transfer facility at Port of Dundee to service the North Sea decommissioning market – an area which is expected to remain profitable over the next 20 years as equipment used in oil and gas explorations reaches end of life (see letsrecycle.com story).
“We have had an encouraging start to the year and have good momentum across our businesses.”
Dr Stewart Davies
Augean
According to Augean, the investment is attracting ‘substantial interest’ from the decommissioning market for the subsidiary to undertake onshore waste management.
Commenting on the trading update Augean chief executive Dr Stewart Davies, said: “We have had an encouraging start to the year and have good momentum across our businesses. Despite some challenging market conditions in 2016, we have secured further waste management contracts with top tier customers that will progressively diversify our revenue streams.
“In view of the opportunities ahead, the Board remains confident in the Group’s delivery of further sustainable growth, in line with our strategy.”
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Source: letsrecycle.com Waste Managment
