Augean (AUG)

Business description

Augean manages hazardous waste through five divisions: Radioactive Waste Services (3% of group revenues), Energy & Construction (33%), Industry & Infrastructure (30%), Augean Integrated Services (13%) and Augean North Sea Services (21%).

Investment summary

Revenue was +11% in FY17 but operating profit fell to £6.4m (FY16: £7.8m), the result of increased costs, issues with a legacy contract and lower volumes in the soil market. Given the continuing uncertainty relating to its tax dispute with HMRC, Augean will not pay a dividend for FY17. Year-end net debt was £10.8m and has since fallen to £8.9m (March) and the recent disposal of AIS will have a beneficial impact on cash flow in FY18. Augean's view remains that there will be no swift resolution to the dispute with HMRC, it did recently announce that it had been advised by HMRC that it (HMRC) intends to issue assessments of £37.6m for the period August 2013-August 2017 and is also considering reducing the amount of the previous five assessments issued from £12m to £7.5m. Therefore, the total value of assessments so far indicated amounts to £45.1m (44p/share).

Last updated on 27/04/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 76.0 14.3 7.2 6.47 5.7 2.9
2017A 84.7 12.9 6.0 5.59 6.6 3.6
2018E 79.5 14.0 8.1 6.27 5.9 2.5
2019E 79.2 15.0 8.8 7.07 5.2 2.6

Last updated on 18/04/2018

Latest video

Executive Interview - Augean

Industry outlook

A growing trend towards treatment, recovery and recycling in the waste hierarchy supports Augean's specialist industry knowledge model.

Last updated on 27/04/2018

Key management

Jim Meredith, Chairman
Mark Fryer, FD

Company address

Unit 4,
Rudgate Court,
Walton,
Wetherby,
LS23 7BF
United Kingdom
+44 (0) 1937 844 980
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