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Augean profit warning for this year and next

By BFN News | 08:04 AM | Monday 16 October, 2017

Augean has unveiled new cost saving measures after warning that full-year profits would be below 2016 and that 2018 figures would be lower than previous forecasts. The group said that as previously announced it remained in active discussions with HMRC over a landfill tax assessment. It said the impact of the HMRC assessment, which the board believed would not be resolved imminently, as well as a continued weaker trading performance, was expected to lead to full year profit being below the level of 2016 with 2018 also expected to be lower than previous expectations. It said the board had implemented a further round of cost reduction including a management re-organisation, to save at least a further £1.7m of cost annually. It said this was incremental to the saving of £1.3m already announced in September. It added: 'The one-off cost of this will be approximately £0.9m and will be shown as an exceptional cost (in addition to the £0.7m for the first round of cost saving). 'The additional cost savings are expected to be realised fully in 2018 with the one-off exceptional costs incurred in 2017.' The group said chief executive Stewart Davies had resigned by mutual consent with immediate effect and non-executive chairman Jim Meredith had expanded his role to that of executive chairman and lead the business through its ongoing re-structuring and cost reduction programmes. At 8:04am: (LON:AUG) Augean PLC share price was -4.75p at 22.5p Story provided by

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