Augean Plc Trading update (7953E)

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

TSTLLFVRDAIIFIR

(END) Dow Jones Newswires

July 21, 2016 02:00 ET (06:00 GMT)