Augean Plc Pre-close trading update (8156C)
January 22 2015 - 2:00AM
UK Regulatory
TIDMAUG
RNS Number : 8156C
Augean Plc
22 January 2015
Augean plc
("Augean" or "the Group")
Pre-close trading update
Augean, one of the UK's leading specialist waste management
businesses, provides the following update prior to commencement of
its close period, ahead of issuing its preliminary results for the
year ended 31 December 2014.
2014 Group performance
The Group performed well in the second half of 2014, and
confirms that underlying profit before tax is expected to be in
line with market expectations.
Net debt, as at 31 December 2014, is lower than market
expectations. This is due to cash received by the Group of
GBP1.2million, in respect of the settlement of litigation in
December 2014, and total cash received of GBP0.8million from the
issue of new shares, to satisfy the exercise of share options,
during the period September 2014 to December 2014.
Business unit performance
The Group operates five business units, in a diverse range of
markets. The 2014 performance of those businesses is summarised as
follows:
-- Strong performance from Energy & Construction throughout
2014, with additional contracts won during the year and an
increased level of tonnage sent to landfill, without significant
abatement in the period leading up to Christmas 2014, as the
weather remained mild;
-- Successful first full financial year for Radioactive Waste
Services as a separate business unit, with the attainment of a
place on the Low Level Waste Repository Waste Treatment Services
Framework and growth in the business arising from nuclear
decommissioning;
-- Continued improvement in revenue and profit from Industry & Infrastructure;
-- Strategic traction from the newly formed Augean Integrated
Services business seen in the delivery of consultative total waste
management solutions and increasing visibility of commercial growth
through the East Kent High Temperature Incinerator during the
second half;
-- Significant growth in revenues and operating profit from
Augean North Sea Services ("ANSS") compared to 2013, with this
trading performance seen throughout the second half of 2014,
including December 2014 and continuing to date.
Impact of oil prices
At the current time, none of our operations appear to have been
affected by the recent decline in oil prices. However, whilst some
benefit may accrue to other parts of the Group, we note the reduced
activity of some oil companies in the Aberdeen area, and
acknowledge the potential risk to the ANSS business of reduced
drilling programmes if oil prices remain at their current levels or
fall further.
Dr Stewart Davies, Chief Executive Officer commented:
"2014 was the first full year of trading since the announcement
of the Group's new strategy. We have seen the strategy gain
traction during 2014, with an extremely encouraging performance for
the year, which we expect to be reflected in 2014 earnings and cash
flow compared to 2013. Despite the adverse conditions currently
seen in one of the markets in which we operate, we continue to see
benefit from the diversity of the sectors that we serve and from
our ability to provide an integrated offering to our customers,
from energy-from-waste to nuclear decommissioning and high value
manufacturing. We are well positioned to continue the delivery of
our strategy and to further strengthen our position in specialist
waste markets"
The Group's preliminary results for the year ended 31 December
2014 are expected to be announced on 24 March 2015.
-Ends-
For further information, call:
Augean plc
Dr Stewart Davies, Chief Executive
Richard Laker, Group Finance Director 01937 844 980
N+1 Singer
Shaun Dobson
Richard Lindley
Jennifer Boorer 020 7496 3000
FTI Consulting
Oliver Winters
Adam Cubbage 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
END
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