Toxic waste experts look inshore in bid to secure future trade

Diversity: Augean aims to expand

Augean said yesterday it was on the hunt for bolt-on acquisitions for its North Sea services subsidiary, with the Peterhead area identified as a target for expansion.

The hazardous waste management company teamed up with oil and gas service firm Scomi Oiltools to launch Aberdeen-based Augean North Sea Services (ANSS) in 2012.

Operatingfromlocations including Aberdeen, Lerwick, Dundee and Great Yarmouth, ANSS is now owned by Yorkshire-headquartered Augean.

The business has recently been diversifying into markets less affected by the lower oil prices.

After hailing a continuation of the wider group’s “track record” of doubledigit underlying profits and revenue growth, Augean chief executive Stewart Davies revealed there is a new expansion plan.

“We will be looking at acquisitionopportunities,” he said, adding: “We have recently invested £2million in the business, mainly in Aberdeen and Great Yarmouth, to aid diversification.”

He would not be drawn on whether Augean has found a likely target for a “bolt-on support service” for its industrial waste management business.

But he revealed the company is interested in oil and gas industry plug and abandonment services.

And he said he was keen to expand ANSS to the Peterhead area to reduce the number of road journeys the subsidiary undertakes between the Buchan town and Aberdeen. “We have a lot of trucks going up and down that road,” he said, adding: “It’s a heavy cost to the business.”

Announcing a 25% increase i n revenue to £76million during 2016, Augean said ANSS responded positively to changes in its market by securing several new contract wins and cutting costs.

The business traded strongly in the second half, the group said.

But ANSS revenue for the whole year was down by 13% to £12.9million, while operating profits for the subsidiary were £800,000 £500,000.

Group pre- tax profits halved to £1.3million, although Augean said underlying profits increased by 16% to £7million before one- off costs totalling £5.7million.

Mr Davies added ANSS was well- positioned for growth, with nearly 40% of business generated from onshore activities – double the level of a year ago, when it was more dependent on offshore projects. lower at

Stewart Davies