Hazardous waste disposal company Augean has posted a 121% increase in profits for the six month period ending in June.
Profits rose from £1m in the same period last year to £2.2m in 2014. Group-wide revenue rose 7% to £24.9m from £23.4m while earnings before interest, tax, depreciation and amortisation increased from £2.2m to £4.4m.
The newly formed Augean Integrated Services (AIS) division grew revenues compared to the same period in 2013 in both waste management activities and waste incineration.
AIS secured new contracts with “high value manufacturing customers requiring a broad waste management service”, including the provision of waste management at clients’ own sites. These activities contributed £1m to group revenues during the six month period.
The facility at East Kent (pictured above), now managed by AIS, demonstrated more stable operational performance following the substantial overhaul of the materials handling system in 2013. However, the facility experienced delays in securing new contracted waste volumes which were expected to drive improvements in operating profit; this despite an increase in revenues from £700,000 in the first half of 2013 to £1.1m in 2014.
The impact of lower than planned revenue growth caused AIS to be behind its operating profit plan for the first six months, and the division posted an operating loss of £500,000 for the first half of the year.
Augean said that encouraging progress is now being made on converting contractual opportunities for later in the second half of the year.
Stewart Davies, Augean’s chief executive officer, said: “The results reflect progress in the delivery of the group’s new strategy, with revenue growth in each of the five divisions. Development of our service-led approach is winning customer support in Radioactive Waste Services, Integrated Services and Augean North Sea Services, underpinning their sales growth plans.
“Increased market activity has provided opportunities for the energy & construction division to strengthen its pipeline, offsetting the slower than expected margin improvements in the industry & infrastructure division and the temporary shortfall in contracted business at East Kent.”