Augean Plc Consultation on Colt (1762O)
May 16 2018 - 1:00AM
UK Regulatory
TIDMAUG
RNS Number : 1762O
Augean Plc
16 May 2018
16 May 2018
Augean plc ("Augean" or the "Company")
Consultation on Colt
Augean, one of the UK's leading specialist waste management
businesses, provides an update in relation to its ongoing programme
to optimise business units and turn around those that are
underperforming. This programme has stringent requirements designed
to ensure that all divisions of the Augean group are making a
positive contribution and at the time of the preliminary results in
March the Company announced that it could not continue to invest in
assets that did not generate suitable returns.
In the year to date, the Colt business has not provided the
positive improvement required under this programme having incurred
a loss of GBP0.6m year to date. In the light of this, the Board
does not believe that Colt has the potential to generate
appropriate returns in the medium term.
It has therefore been decided to consult with staff to
investigate options to strengthen and support other profitable
areas of the Industrial Services business across the Group
(turnover almost GBP15m with 75 staff operating out of seven sites)
through the potential re-allocation of Colt assets. The Group is
also seeking to reduce its costs through the potential closure of
the Colt offices and disposal of unwanted assets. This consultation
will take 30 days and could impact up to 60 staff in Colt. The Hull
site could also be sold.
The income statement impact of closure of the Hull site and any
associated redundancy costs could be approximately GBP1.6m with net
cash receipt expected of GBP1.3m. The Colt operation is expected to
be classified as a discontinued operation for both the half and
full year accounts and will include the loss to date of GBP0.6m as
well as the potential closure cost of GBP1.6m.
Elsewhere, the Board is encouraged by Group trading and is
therefore confident that this remains in line with market
expectations. The latest net debt at 14 May was GBP6.6m.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
- Ends -
Enquiries:
Augean plc
Jim Meredith, Executive
Chairman
Mark Fryer, Group Finance
Director 01937 844 980
N+1 Singer
Shaun Dobson
Alex Price 020 7496 3000
This information is provided by RNS
The company news service from the London Stock Exchange
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