Augean still hopeful of growth despite delay blow to forecast results

The Wetherby-based group said its trading in the second half of 2012 was “satisfactory” despite delays in delivery of shipments of low-level radioactive waste (LLW).

The delays mean results will be at the lower end of its revised forecasts, with revenues expected to be between £42m and £43m.

House broker N+1 Singer cut its pre-tax profit forecast by seven per cent from £2.7m to £2.5m.

Augean said: “The board remains confident that the routes to the LLW market remain in place and will continue to develop as the challenges of unlocking volumes are met during 2013.”

In late 2011 Augean won a long-running battle to take LLW from decommissioned power stations at its East Northants site in Northamptonshire, a former clay pit.

In September it said it had won two contracts to dispose of LLW at the site. However, Augean said the pace of release of waste has been “slower than originally planned”, with a number of deliveries expected in its new financial year.

The company added it still expects LLW to make a “material positive impact” on its results.

Augean’s traditional markets of hazardous waste were “broadly flat” through the year. However, the group is branching out into industrial services, hazardous waste incineration and offshore waste management.

It said: “While the general economic outlook for the wider hazardous waste sector remains subdued the board believes that the group is well placed to deliver continued growth during 2013.

“The investments and new business streams delivered during 2012 are expected to lead to improvements to revenues, earnings per share and cash flow during the year.”

Its land remediation business improved profits and revenues, helped by a strong first quarter.

Its oil and gas services arm also improved, while its waste network division was “stable... in challenging markets”. It is consolidating waste network’s sites from three to two by March, closing a site in Worcester with a “small number of redundancies”.

Augean is looking for a new chief executive after Paul Blackler announced in September he is leaving the group.