Waste firm counts virus costs

Waste management firm Augean said Covid-19 has hit nearly all of its divisions.
Augean said trading in the third quarter has picked up significantlyAugean said trading in the third quarter has picked up significantly
Augean said trading in the third quarter has picked up significantly

The Wetherby-based firm said the most heavily impacted segments include radioactive, biomass EfW and construction, which were all placed on hold due to lockdown restrictions.

The group has remained fully operational at all sites throughout the year to date with safe working measures in place to mitigate impact of the pandemic.

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However, it said Covid-19 has impacted all the group's divisions negatively with the exception of the residential EfW ash segment.

The North Sea service business has been heavily impacted both by the Covid-19 effect on activity levels as well as an unprecedented significant decline in the oil price as a result of Covid-19.

The first quarter generated more than two thirds of the half year profits with the second quarter heavily impacted by Covid-19.

On a brighter note, Augean said trading in the third quarter has picked up significantly over the second quarter.

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Adjusted revenue before landfill tax fell 6 per cent to £41m in the six months to June 30 and adjusted pre-tax profit was down 11 per cent to £8.5m.

Jim Meredith, Augean's executive chairman, said: "The group has delivered a robust performance across all areas of the business despite significant headwinds in quarter two.

"We are working hard to recoup the impact of the lower oil price and Covid-19 over the second half and, assuming no further Covid-19 lockdowns, we anticipate that full year results will be broadly in line with market expectations.

"The group's performance in difficult circumstances (Covid-19 and oil price reduction) demonstrated the resilience of our current portfolio of activities and so maintaining our growth profile."

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