The sale of a waste transfer station division is set to bring down Augean’s financial results for 2013, after the company sold the assets below the carrying value.
The hazardous waste management company announced the disposal of its Waste Network business arm in September 2013. It has now announced it completed the sale for a total of £1.2m, a figure it said was below the carrying value of the assets and goodwill held by the group at December 2013.
This will result in impairment charges of £4m, which will be included in the group’s result for 2013.
Part of the division was retained by the company and used to form a new arm, Augean Integrated Services, with operations based at Cannock, Staffordshire.
The division will provide management and consultancy services for both hazardous and non-hazardous waste.
Augean’s site and assets based at Hinckley, Leicestershire, were sold to chemical waste services provider Greenway Environmental for £400,000.
Cleansing Service Group, another provider of hazardous and non-hazardous waste management services, acquired operations based at Rochdale, Greater Manchester and a site at Worcester, Worcestershire, for £800,000.
Stewart Davies, chief executive at Augean said: “The sale and closure of the former Waste Network division represents a significant change in the structure and focus of the Augean Group.
“The disposal is consistent with our ambition to grow the group’s activities in waste markets offering enhanced margins and more secure revenue streams.”