18 September 2018 – interim results
Results for the six months ended 30 June 2018 have been released. Adjusted revenue before landfill tax increased by 6% to £32.9m (2017: £30.9m). Adjusted profit before taxation increased by 36% to £4.5m (2017: £3.3m) and basic adjusted earnings per share increased by 21% to 3.18p (2017: 2.62p). Net cash flows improved to an inflow of £8.1m from £0.8m outflow in the first half of 2017. Net debt improved to £2.7m (31 December 2017: £10.8m). Net debt as at 13 September was £0.4m. Capital spend to maintain landfill capacity will increase in the second half. Although these are strong results, the issue with regards to £14.8m of Landfill Tax Assessments received to date remains key. Augean has not made provisions for assessments received to date based on independent legal and professional advice received. This leaves scope for disappointment and although the business itself is performing well we maintain our HOLD rating for now.