Augean puts dividend payments on hold until resolution of HMRC spat

26th Feb 2019 08:02

(Sharecast News) - Waste management business Augean saw profits soar in its last trading year as a result of a significant decline in exception items.Pre-tax profits increased 69% to £11.4m in the year ended 31 December, as revenues, excluding landfill taxes, improved 22% to £68.8m. Earnings per share shot up 56% to 8.52p.However, operating expenses increased by 14% to £67.6m.While Augean warned that its dispute with HRMC was still ongoing, the group assured investors it was still in talks with the tax collector over a £16.2m bill for landfill tax payments not made by two of its operating subsidiaries between February 2015 and May 2018. It will not be paying a dividend until the HMRC matter is resolved.Looking forward, Augean has targeted further growth in its core key markets of energy from waste and North Sea decommissioning following a "strong start" to trading in the first months of 2019 with results well ahead of prior year and in line with expectations.Chairman Jim Meredith said: "2018 was a pleasing year as the group continued to make significant changes to streamline activities, enhance performance and focus on both cash generation and retention."The group is currently experiencing strong initial trading for the start of 2019 and the board is confident in the group's prospects for the year. Our focus will continue to be on cash control and so improving our cash position."As of 1115 GMT, Augean shares had dropped 4.64% to 80.10p.