Augean Plc Sale of Colt Assets (2098S)

TIDMAUG

RNS Number : 2098S

Augean Plc

22 June 2018

Augean plc ("Augean", "Company" or "Group")

Sale of Colt Assets

Augean, one of the UK's leading specialist waste management businesses, provides an update in relation to its ongoing programme to optimise business units and turn around those that are underperforming. This programme led to the announcement on 16 May that it had been decided to consult with staff to reduce costs through the potential closure of the Colt site (an industrial services provider to a range of customers including major industrial companies, oil refineries, rail and utilities) and disposal of unwanted assets. This consultation was to take 30 days and impact up to 60 staff. The potential income statement impact of closure was announced to be approximately GBP1.6m with net cash receipt expected of GBP1.3m for the sale of the property and assets.

The consultation period has today completed with the Colt fixed assets being sold to Future Industrial Ltd. The main terms of this agreement are:

   --      GBP1.0m cash consideration; 
   --      The transfer of all staff working for Colt Industrial Services at the Hull site; 
   --      The retention by the Company of the Colt business working capital; 

-- The retention by the Company of the Hull site, which is now being leased to Future Industrial Ltd on a ten-year lease for GBP0.1m per annum.

The sales proceeds will be used to pay down existing debt facilities. There is now not expected to be an exceptional loss on closure / sale. The loss attributable to the assets sold was GBP0.75m in 2017.

As previously announced, the Company will continue to operate its Industrial Services business across the rest of the Group.

- Ends -

Enquiries:

 
 Augean plc 
  Jim Meredith, Executive Chairman 
  Mark Fryer, Group Finance Director    01937 844 980 
 N+1 Singer 
  Shaun Dobson 
  Jen Boorer                            020 7496 3000 
 

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June 22, 2018 02:00 ET (06:00 GMT)