Member Article

Wetherby waste management group sells division for £1.2 million

Augean, the Wetherby-based waste management group, has announced the sale of certain businesses and sites of its former Waste Network division to two separate buyers for a total £1.2 milion.

The closure and proposed sale of the Waste Network division was announced in September 2013.

As part of this process the division ceased to operate on 2nd January 2014 and certain assets were retained to form a new business: Augean Integrated Services (AIS). The AIS operations are based at Cannock, initially supporting a small number of clients requiring total waste management services.

The first of these transactions related to the business, site and assets based at Hinckley, which have been sold to Greenway Environmental Limited.

The cash proceeds from this sale were £0.4m. A second transaction, with Cleansing Service Group Limited, for the business based at Rochdale and the site at Worcester, is also complete.

Cash proceeds of £0.8m from this sale take the total value received from the Waste Network sales to £1.2m (before project costs of £0.1m).

The total sales proceeds are less than the carrying value of the relevant assets held by the Group at 31 December 2013. This will result in exceptional impairment charges of £4.0m which will be included in the Group’s Results for 2013.

Commenting on the transaction Dr Stewart Davies, Chief Executive Officer said: “The sale and closure of the former Waste Network division represents a significant change in the structure and focus of the Augean Group.

“The disposal is consistent with our ambition to grow the Group’s activities in waste markets offering enhanced margins and more secure revenue streams.”

This was posted in Bdaily's Members' News section by Clare Burnett .