Augean : Sale of Colt Assets

Augean plc ('Augean', 'Company' or 'Group')

Sale of Colt Assets

Augean, one of the UK's leading specialist waste management businesses, provides an update in relation to itsongoing programme to optimise business units and turn around those that are underperforming. This programme led to the announcement on 16 May that it had been decided to consult with staff to reduce costs through the potential closure of the Colt site (an industrial services provider to a range of customers including major industrial companies, oilrefineries, rail and utilities) and disposal of unwanted assets. This consultation was to take 30 days and impact up to 60 staff. The potential income statement impact of closure was announced to be approximately £1.6m with net cash receipt expected of £1.3m for the sale of the property and assets.

The consultation period has today completed with the Colt fixed assets being sold to Future Industrial Ltd. The main terms of this agreement are:

· £1.0m cash consideration;

· The transfer of all staff working for Colt Industrial Services at the Hull site;

· The retention by the Company of the Colt business working capital;

· The retention by the Company of the Hull site, which is now being leased to Future Industrial Ltd on a ten-year lease for £0.1m per annum.

The sales proceeds will be used to pay down existing debt facilities. There is now not expected to be an exceptional loss on closure / sale. The loss attributable to the assets sold was £0.75m in 2017.

As previously announced, the Company will continue to operate its Industrial Services business across the rest of the Group.

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