Augean takes out the trash as profit increases by a third

The six months ended 30 June saw the company land adjusted profit before tax of £4.5m, up 36% compared to the same period last year, while revenue increased by 6% to £37.5m and scored exceptional one-off profits of £1.4m from the sale of AIS and disposal of Colt assets.

The business optimisation plan saw the firm increase overall profits at each its sites except Kent and achieve double digit growth from residues from Energy from Waste plants throughout the period.

The AIM-traded company had cash and cash equivalents of £5.2m at 30 June, up from £2.8m at the same point last year.

Jim Meredith, executive chairman, said: "We have made excellent progress in the first half of 2018 having grown sales in all our key strategic markets, reduced the cost base of the group, driven cash generation and co-operatively engaged with HMRC. We expect to make progress with HMRC in the second half of 2018 and will update the market accordingly."

In August of last year, the company received an assessment by HMRC for landfill tax of £1.9m with interest of £0.2m for the three months ended 31 August 2013, with discussions ongoing as to whether sufficient landfill tax has been paid in relation to treatment and disposal of hazardous waste.

"The team at Augean have responded well to the changes in the business, for which I would like to thank them all. With growth in our key strategic markets we expect to deliver full year financial results that exceed current market expectation," said Meredith.

Augean’s shares were up 7.69% at 49.00p at 0918 BST.