Waste management firm Augean expects results at lower end of forecasts

Augean's shares dropped Monday after the waste management firm said it expects full year results to be at the lower end of its revised forecast.

The UK company pegged revenues at a range between £42m to £43m for the year.

"Trading in the second half of the year delivered a satisfactory performance despite delays in the delivery of the expected volumes for Low Level Waste (LLW)," the group said in statement.

However, Augean remained confident the routes to the LLW market remain in place and will continue to develop as the challenges of unlocking volumes are met this year.

Development of new business streams in industrial services, hazardous waste incineration and offshore waste management drove revenues during the period.

The group's traditional hazardous waste markets, on the other hand, were broadly flat throughout the year.

Augean added LLW market development, alongside new businesses, are expected to continue to enhance shareholder returns during the coming year.

"While the general economic outlook for the wider hazardous waste sector remains subdued the board believes that the group is well placed to deliver continued growth during 2013," it added.

"The investments and new business streams delivered during 2012 are expected to lead to improvements to revenues, earnings per share and cash flow during the year."

Shares fell 6.06% to 31.00p at 15:03 Monday.

RD