Augean Plc (LON: AUG) have beaten market expectations for profits for the second time this year, causing their stock price to soar.
The firm specializes in waste and resource management, with an emphasis on the hazardous waste sector, the oil/gas industry and the nuclear sector operating all across the UK.
The company also published details about a subsidiary company “Our subsidiary company Augean North Sea Services (ANSS) specialises in the development of innovative solutions to manage all waste streams derived from North Sea exploration, production and decommissioning activities”
The group provides strong commercial and compliance led solutions. Additionally in the company bio, “The Group provides a wide range of services through its treatment, transfer, industrial services, landfill disposal, recovery and recycling capability”
Augean have said that 2019 statistics will show a 20% rise in landfill volumes across all waste sectors, with landfill prices also increasing by 20%.
The company benefitted particularly from increased profits on radioactive waste operations, along with strong figures in waste treatment and North Sea businesses.
Augean saw an adjusted pretax profit of £16.5 million, and that 2019 annual profits were set to exceed expectations at the start of the year.
Jim Meredith, Executive Chairman said “The Group has delivered strong results in all areas of the business with cash generation especially pleasing. We remain confident in the Group’s prospects for a full year result and anticipate results ahead of market expectations”
In 2018, pretax profit amounted to £10.6 million, following adjustment this rose 69% from 2017 totaling £11.4 million.
Earlier in the year, Augean faced a battle with tax authorities after facing a £4.6 million tax bill from HMRC.
In Augen’s six month interim publication, they stated “Based on the legal and other advice received by the Group over several years, Augean is confident that the Group has met its obligations in respect of landfill tax, consistent with the law and official guidance at the time. Accordingly, it has appealed both the Augean South and Augean North assessments and the tax tribunal is expected in 2020. HMRC has agreed to the deferment of the payment of total tax assessed against the relevant group entities until the outcome of the tax tribunal has concluded. HMRC is considering whether penalties may be appropriate and there may be other final assessments for other time periods for both Augean North and Augean South”
Shares rose by 16.27% to 137.20p per share, which reflects a strong trading period.
Both shareholders and senior authority will be pleased after massively exceeding the markets expectations.
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