Hazardous waste specialist Augean is trading “ahead of expectations” its chairman has told shareholders.
Roger McDowell, speaking at the firm’s AGM, said: “The group has delivered strong revenues and positive cashflows from operations.
“The group has made significant progress over the past six months in delivering previously identified strategic opportunities, including the activation of planning permission to receive Low Level Waste at our East Northants Resource Management Facility, the addition of incineration capacity through the new East Kent Waste Recovery Facility, and the recently announced venture to increase our waste management services to the offshore oil and gas sector through Augean North Sea Services.”
The company was also recently awarded preferred bidder status for disposal of 2,000 tonnes of low level nuclear waste through a framework agreement supported by the Nuclear Decommissioning Authority.
In March the company reported pretax profits of £1.4m in 2011, up from £0.5m in 2010, with an 10% increase in revenue (including landfill tax received) to £37.5m. The firm reported a net debt of £4m (including LFT) up from £3.9m.
Speaking to MRW, chief executive Paul Blackler said Augean was in a “good position in our core business, and with our three strategic priorities delivered in the first half of the year”.
Blackler said Augean’s position as a specialist and its strategy of strengthening capabilities, broadening its services and identifying new markets had helped the company manage risk in a difficult market in difficult economic conditions.
He added: “Hence things like nuclear decommissioning and the off-shore market; our entry into those markets has been at a time when we think they are just starting to show growth.
“So, yes, it’s a difficult market, but we are delivering a strategy to mitigate some of our exposure to that volatility.”
Shareholders at the AGM also voted to approve new long-term performance related incentives for directors in the form of shares recommended by the company’s remuneration committee.