Specialist waste manager Augean says its position in a challenging marketplace has been boosted by new contracts that have diversified its revenue streams.
The company has issued a trading update ahead of its preliminary results for 2016 due in March, saying that underlying profit before tax is expected to be in line with expectations. Net debt was £10.8m, £2.3m better than expected across the group’s five divisions.
Augean reported growth in air pollution control residue volumes, while the volume of construction soils processed did not fall as much as expected from a higher level in 2015. The radioactive waste services division continued to be affected by a reduction in nuclear decommissioning.
Augean Integrated Services reported top-line growth of more than 35% in 2016 with an ”encouraging pipeline of opportunities”. The East Kent high temperature incinerator for hazardous waste did not break even in 2016 but management expects to turn that around.
Augean North Sea Services, which also lost money in the first half of 2016, is being diversified to offset reduced activity in its drilling waste management business.
Dr Stewart Davies, chief executive (pictured), said Augean had made an encouraging start to the year: “Despite some challenging market conditions in 2016, we have secured further waste management contracts with top-tier customers that will progressively diversify our revenue streams.
”In view of the opportunities ahead, the board remains confident in the group’s delivery of further sustainable growth, in line with our strategy.”