Interim results for the six months ended 30 June 2019

We are pleased to announce our unaudited interim results for the six months ended 30 June 2019.

Financial charts

Financial highlights

Adjusted metrics are from continuing operations and excluding exceptional items and share based payments

  • Adjusted revenue1 before landfill tax increased by 40% to £44.2m (2018: £31.6m)
  • Adjusted profit1 before taxation increased 100% to £9.6m (2018: £4.8m)
  • Adjusted EBITDA2 increased by 71% to £14.2m (2018: £8.3m)
  • Adjusted basic earnings per share increased by 114% to 7.61 pence (2018: 3.56p)
  • Proceeds of £3.35m for the sale of East Kent received
  • Net cash position of £22.8m (December 2018: £8.2m)

Operational highlights

  • Business optimisation programme delivered with cost savings considerably exceeding target
  • Good sales growth in all sites with Treatment & Disposal up 39% and North Sea 43%
  • Double digit growth from residues from Energy from Waste (EfW) and other incinerators plants despite delays in plants commissioning
  • Strong further progress demonstrated in the market position for soils with overall volumes doubling on H1 2018
  • Continued diversification in North Sea into industrial services, decommissioning and waste management where we have seen new customer wins

HMRC

  • The Group has received landfill tax assessments for its companies Augean North and Augean South for a total of £34.7m (£37.3m including interest), and expects to receive additional assessments for other time periods until the outcome of the Tax Tribunal is known
  • All assessments have been appealed, hardship awarded, no provision created, and the Lower Tier Tax Tribunal is expected in 2020
  • Augean remains confident the Group has met its landfill tax obligations

Outlook

  • Further growth targeted in the core markets of Energy from Waste and North Sea Decommissioning
  • The Board anticipates to exceed market expectations for the full year

Commenting on the results, Jim Meredith, Executive Chairman, said:

“The Group has delivered strong results in all areas of the business with cash generation especially pleasing. We remain confident in the Group’s prospects for a full year result and anticipate results ahead of market expectations”.

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