Augean sees £8m loss as Colt sold to Future

The transaction will see several fixed and mobile assets of the industrial services company transferred to Future, along with the transfer of more than 40 staff.  The transaction covers the assets only and Colt will be closed in the near future.

Future, whose clients include public authorities, major utility and multi-national companies provides services including waste management, industrial cleaning, emergency spillage response and decommissioning.

As part of the deal with Augean, Future has also entered into a long term lease for the existing premises in Hull, in order to “ensure continuity of service to the regional customer base”. This will be £100,000 a year.

Underperforming

Augean first announced its intention to consult with staff on the closure of Colt back in May of this year, under a company-wide programme to “turn around those that are underperforming”.

In a statement, Augean said Colt “has not provided the positive improvement required under this programme having incurred a loss of £0.6m year to date.”

Augean said in its annual report that Colt has a turnover of almost £15 million with 75 staff operating out of 75 sites.

“The Group is also seeking to reduce its costs through the potential closure of the Colt offices and disposal of unwanted assets,” Augean said in the statement.

When announcing the sale of the company, Augean said:  “The sales proceeds will be used to pay down existing debt facilities.”

Expansion

The acquisition of Colt’s assets continues the expansion of Future Industrial Services, who specialise in hazardous waste collection.

David Lusher, CEO for Future Industrial Services explained that the acquisition represents another major milestone in the growth of the business.

“We are delighted to conclude this transaction,” he explained.

“This represents another major milestone in the growth of the business following on from the acquisition of the Bale Group assets in 2016, and the successful MBO from previous parent One51 plc, completed in 2017. Over 350 colleagues now work within Future Industrial Services, and the Colt business increases the range of services we can offer to our customers. This major centre in Hull will provide real operational synergies and efficiencies to the wider business’’.

Augean

Augean describes itself as “the sector leader in modernising hazardous waste management practice providing sustainable, compliance-led waste management solutions for Britain’s more difficult to handle wastes.”