HMRC has been in discussion with Augean regarding whether it has historically paid enough landfill tax on loads which contain mixed hazardous and non-hazardous waste. Augean is confident it has paid the correct landfill tax, in line with the law and official guidance of the time. However HMRC has now issued an assessment on an Augean subsidiary for landfill tax of £1.9m plus £0.2m interest, for the quarter June to August 2013. The timing of this assessment is to meet the 31st August 2017 deadline for reviewing this period, while discussions continue. Augean believes the assessment is without merit and will appeal if it is maintained. However in the meantime it seems likely that further assessments will be issued for subsequent quarters and potentially another subsidiary. The group therefore has a potential liability of very uncertain probability, timing and size, although clearly it could be significantly larger than £1.9m. Management will challenge this and any further such assessments it may receive, through the tax tribunal system if necessary, and does not intend to provide for any extra historical landfill tax. However costs of the dispute with HMRC will be shown as an exceptional item. We have made no changes to our forecasts at this stage, as we cannot quantify the potential impact, but expect the news to weigh upon the shares.