Augean expects to meet market expectations

In the six months ended June 30 2017, the company’s revenue increased by 14.4 per cent to £42.1m, while operating profit before exceptional items fell by 8.0 per cent to £3.3m. The adjusted profit before taxation decreased by 7.2 per cent to £2.9m.

Dr Stewart Davies, the chief executive, said: “The group has had a mixed first half of 2017, with improved performance from its radioactive waste services and North Sea services businesses offset by losses in its industry and infrastructure business primarily due to a legacy Colt contract.

He added: “The group will continue to challenge the recent HMRC assessment. We expect to deliver full year financial results broadly in line with market expectation, albeit the uncertain environment caused by this assessment is unhelpful.”

Augean said there was a continued focus on diversification of revenue streams in Augean North Sea Services, with significant contract wins from strengthened relationships with tier-1 customers and sustained growth in profitability. The company secured two significant contract awards for Radioactive Waste Services, with total potential revenue of around £4m. The company also secured an increase in total waste management contracts over the half year.