Shares in Augean slip as FY pre-tax profits halved on exceptionals

Shares in Augean fell by almost 7% after the specialist waste-management business' full-year pre-tax profit was halved as it recycled an improved dividend to shareholders.

Chief executive Stewart Davies said 2016 saw the group deliver double-digit growth in revenue, operating cash flow and EBITDA.

"At an operational level, the group has achieved a number of key strategic goals including securing further contracts with top-tier customers and a significant increase in APCR volumes, reaffirming our integrated waste management proposition with our customers," he said.

Augean had experienced good momentum across its portfolio of businesses and remained well positioned to take advantage of opportunities across a broad number of sectors.

"The group's cash generation and balance sheet remain robust and the board remains confident of maintaining its track record of year-on-year increases in profitability in 2017."

For the 12-month period, pre-tax profit including exceptionals fell 50% to £1.3m, from £1.5m.

The result included exceptional items of £5.7m, which included £3.3m non-cash impairment of East Kent, £1.2m related to a trade dispute settlement, and £0.8m of Colt acquisition fees.

Proposed dividend was hiked 54% to 1p a share. Revenue was up 25% to £76.0m.

At 11:00 GMT, shares in AIM-listed Augean were up 6.96% to 53.5p each.