Augean PLC (LON:AUG) shares dropped around 10% in Monday’s early deals despite management comments in today’s interim results that the group's performance for the full year will “broadly meet market expectations”.
This, however, came with the caveat that it assumes no further coronavirus (COVID-19) lockdowns in the second half.
The hazardous waste specialist said it expects that its full-year profits will be second-half weighted.
In the first half, it saw a 6% decline in adjusted revenue for the six months ended June 30, 2020, to £41.4mln, with adjusted pre-tax profits down 11% at £8.5mln. Half-year underlying earnings (adjusted EBITDA) were down 6% to £13.3mln, and on a per-share basis fell 12% to 6.7p.
The company highlighted ‘robust’ cash generation, at £10.5mln, and noted net debt stood at £3.3mln.
It told investors that all sites remained fully operational as measures were put in place to mitigate the impact of COVID-19, though its markets were disrupted.
The radioactive, biomass EfW and construction business areas were most heavily impacted, whilst the North Sea services business additionally had to cope with a significant and unprecedented decline in the oil price.
Augean noted that no new significant North Sea decommissioning projects are expected in 2020.
"The group has delivered a robust performance across all areas of the business despite significant headwinds in quarter two,” said Jim Meredith, executive chairman in the results statement.
“We are working hard to recoup the impact of the lower oil price and Covid-19 over the second half and, assuming no further Covid-19 lockdowns, we anticipate that full-year results will be broadly in line with market expectations.”
In London, Augean shares dropped 19.95p or 10.5% in Monday’s early deals to trade at 170.05p.
