22 March 2016

Final results for the year ended 31 December 2015

Here are our preliminary results for the year ended 31 December 2015.

Financial highlights

  • From continuing operations and excluding exceptional items
  • Revenue increased by 11% to £61.0m (2014: £55.0m)
  • Profit before tax increased by 12% to £6.0m (2014: £5.4m)
  • Net operating cash flows increased by 45% to £11.1m (2014: £7.7m)
  • Return on capital employed (1) increased to 11.4%, from 10.7% in 2014
  • EBITDA(2) increased by 20% to £12.1m (2014: £10.0m)
  • Basic earnings per share increased by 13% to 4.65p (2014: 4.13p)
  • Net debt decreased by £1.4m to £4.3m (2014: £5.7m)
  • Proposed dividend per share of 0.65 pence, an increase of 30% (2014: 0.50 pence)
  • £20m Bank facility renewed on 21 March 2016 with extra £10m specifically to fund acquisitions 

 
Operational highlights

  • Strong performance from Energy & Construction driven primarily by high level of construction soils activity during the year
  • Positive revenue and margin performance in Radioactive Waste Services ("RWS") despite lower volumes of waste received
  • Turnaround plan underway within Industry & Infrastructure focused on extending the range of services and increasing market penetration
  • Very strong results from Augean North Sea Services ("ANSS") with a number of significant contract wins with oil & gas operators and tier-1 customers
  • Purchase of the remaining 19% of shares in ANSS from the minority shareholder, for a cash consideration of £1.05 million
  • Further progress within Augean Integrated Services with additional total waste management contracts secured with blue-chip customers

 

Outlook

  • Encouraging start to 2016 with a number of contracts secured with Tier-1 customers across the Group's businesses
  • Continued emphasis on moving Group revenues to long-term contracts and frameworks
  • Board focused on further improving the returns from capital employed across the Group
  • Group as a whole is trading in line with market expectations. 

  
Commenting on the Results, Dr Stewart Davies, Chief Executive Officer, said: "2015 was a year of significant progress for the Group resulting in double digit growth in revenue, operating cash flow and EBITDA. The results were driven by a strong performance across a number of the Group's businesses in which we have built sustainable market positions. Our ability to work closely with customers to provide specialist services focused on hazardous waste throughout the supply chain was reflected in a number of strategically important contract wins during the year.
 
The Group remains focused on the execution of its strategy to deliver shareholder value and further direct contracts with tier-1 producers have been secured, improving forward visibility of earnings. The portfolio effect of maintaining five businesses in diverse markets and the continued focus of the Group on further increasing returns on its investments means that the Board remains confident of maintaining its track record of year-on-year increases in profitability in 2016." 

(1) Return on capital employed is defined as operating profit divided by average capital employed, where capital employed is net assets excluding net debt
(2) EBITDA means earnings before interest, taxation, depreciation and amortisation