Augean’s long-term relationships are reaping the rewards

The Wetherby-based firm said underlying pre-tax profits rose 121 per cent to £2.2m in the six months to June 30 as it focuses on the higher end of the market.

Augean’s CEO Stewart Davies said that 90 per cent of its top 20 customers are now tied to the company on a contract or framework basis. This compares with 42 per cent a year ago.

Augean has moved from dealing with customers on a one-off, transaction by transaction basis to a more long-term relationship.

“A really important part of our strategy is about client focus. We have now got five divisions which are led by people who really understand their clients. We have focused on areas where we can get close to clients,” he said.

Analyst Jo Reedman at N+1 Singer said: “Each of the divisions reported sales growth, with increased profits from Energy & Construction, Radioactive Waste Services and Augean North Sea Services, and reduced losses from Augean Integrated Services and Industry & Infrastructure.

“The group is also making good progress in consolidating its customer relationships and improving forward visibility.”

Continuing adjusted ​pre-tax profit​ rose 50​ per cent​ to £2.4m.

Finance director Richard Laker said: “We think these are an extremely strong set of results. Pre-tax profits are up over 50 per cent. The company is starting to move towards higher margin revenue.”