Augean Plc Trading update (7953E)
July 21 2016 - 2:00AM
UK Regulatory
TIDMAUG
RNS Number : 7953E
Augean Plc
21 July 2016
21 July 2016
Augean plc
("Augean" or "the Group")
Trading update
Augean, one of the UK's leading specialist waste management
businesses, provides the following update ahead of issuing its
interim results for the six-month period ended 30 June 2016.
Group performance
The Group confirms that performance for the year ended 31
December 2016 is in line with market expectations that were
recently upgraded following the acquisition of Colt Industrial
Services.
Business unit performance
The Group operates five business units, in diverse markets. The
performance of those businesses in the first six months of 2016 is
summarised as follows:
-- Continued strong performance from Energy & Construction, with growth seen across a broad range of waste streams.
The significant increase in APCR volumes has been underpinned by a number of contract wins in the first half of
the year;
-- Performance from Radioactive Waste Services has been impacted by the sharp reduction in volumes from UK nuclear
decommissioning that we have previously reported. This has continued through the first half of 2016;
-- An encouraging performance from Industry & Infrastructure, which traded ahead of management expectations and
delivered the planned profitability improvements at its Avonmouth site. The integration of the recently acquired
Colt Industrial Services ("Colt") business is underway;
-- Performance in Augean Integrated Services has been impacted in the first half of 2016 by below-plan availability
at East Kent, which is being addressed through an operational improvement programme. Further recent contract wins
with tier-1 customers provide increased confidence of a stronger operational and financial performance in the
second half of the year;
-- Augean North Sea Services ("ANSS") has achieved a number of significant contract wins in the first half including
with two major oil & gas companies for services related to North Sea production; this is in line with the ANSS
strategy of reducing its dependency on exploration drilling. Nonetheless, the financial performance of the
business in the first half of 2016 was materially lower than in the same period in 2015.
Dr Stewart Davies, Chief Executive Officer, commented:
"Trading in the first half has been in line with management
expectations. The performance within Energy & Construction, the
Group's largest business unit, has been particularly pleasing with
the growth in APCR volumes delivering a key strategic
objective.
There has been significant progress in developing sustainable
market positions across a broad range of sectors, both organically
and through the acquisition of Colt. The Group's growing asset base
and exposure to diverse markets enables us to manage short term
headwinds within individual business units and the Board remains
confident in the Group's ability to continue to grow shareholder
value."
The Group's interim results for the six months ended 30 June
2016 are expected to be announced on 20 September 2016.
-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 3727 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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