(Alliance News) - Shares rose in Augean PLC on Monday as it said it expects to report an adjusted pretax profit for 2020 at least in line with the year before, despite the decline of its North Sea business and the ongoing Covid-19 pandemic.
Shares in the Wetherby, West Yorkshire-based waste management company were 10% higher at 206.25 pence on Monday in London.
In 2019, Augean's adjusted pretax profit was GBP19.2 million.
Despite a recovery in revenue for the second half, Augean has made further cuts to the North Sea unit's cost base to reflect anticipated trading conditions ahead. In September, for the first half of 2020 Augean noted that the business had been struggling due to a sharp decline in oil service-related activity.
Due to expectations of a tough market, the group expects to impair the North Sea business by GBP3 million in its annual results.
During 2020 and 2021 to date, Augean has secured incremental ash contracts for six energy-from-waste facilities, four of which are for operational facilities and two for proposed new facilities. These contracts are expected to generate total annualised revenue of around GBP6 million
As at December 31, Augean had net cash of GBP6.4 million, excluding lease liabilities. Based on its expected performance, the group anticipates a return to dividend payments in 2021.
Augean will report its annual results in early March.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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