More unreliable figures from the iii website.
Today showing latest trade as 27.5 at 09:57, but on the official LSE site this trade was at 08:87.
Latest trade so far today on LSE is 28.99.
Google finance manages to get it right. Why do iii struggle ?
""Britain is facing a triple waste whammy of stalled recycling rates, not enough incinerators being built and landfill running scarce. That is the stark prognosis of the countrys busiest bin clearer, Biffa, which is calling on the government to think again on waste having followed policies that have got Britain among Europes better performers but no further. - The Times""
Augean, one of the UK's leading specialist waste management businesses, is pleased to announce that it has entered into several new contracts with an existing customer to treat and dispose of air pollution control residues (APCR).
As stated in the Group's recent preliminary results, growth in the volume of APCR treated by the Group's Energy and Construction business remains a key strategic objective in the short and medium term. These new contracts, which were awarded following a competitive tender process, are delivering on that objective and include the retention of an estimated annual tonnage of 24,000 tonnes and an additional annual tonnage of 25,000 tonnes, of which 13,000 tonnes will be incremental in the financial year ending 31 December 2016.
The contracts terminate no earlier than 31 March 2019, with the customer having the option to extend the contracts for up to two further years beyond that date.
Stewart Davies, Chief Executive, commented:
"We are delighted to be awarded these contracts, which align with a key strategic aim of the Group to expand our contracted revenue base in growth markets with our specialist hazardous waste services. The growth in APCR volumes brought by the new contracts will help the Group to continue development of its services to this competitive and growing market, and underpins existing management expectations."
Read Edison's note on Augean (AUG), out this morning, by visiting www.research-tree.com
Despite the challenging trading conditions affecting some of the divisions, the portfolio approach allowed all the group financial metrics to show double-digit growth. Good cash generation gives the group strategic options and has allowed a positive dividend surprise (+30%) reflecting the boards confidence in Augeans long-term prospects
I can't see why the revision to LFT1 in December should be a concern to Augean's market for Haz waste. The changes were:
HM Revenue and Customs (HMRC) have amended this notice to include guidance on mixed loads, quarries and on the definition of naturally occurring for Landfill Tax. The change to the content is in the following part of the notice:
Section 4.3 Definition of naturally occurring
Section 5.3 Guidance on evidential requirements including illustrative European Waste Catalogue
Section 7 Lower rate: mixed loads
Section 8.4 Guidance on the conditions that must be met where lower rated waste, used for the purposes of filling existing quarries, qualifies for exemption from Landfill Tax
These were after construction industry pressure about how a small amount of 'bad' material in a lorry load could make it liable for full landfill tax, and not Inert rate. There was another change to LFT1 earlier in 2015 that meant more loads with small quantities of asbestos fragments would have to be ALL at haz waste disposal (and rates), which would mean MORE loads going to HAz waste facilities. Unless this change affects their soil treatment centre (nil LFT), but that is a small part of their turnover? More concerning would be the Scottish/Oil&Gas market decline, which they address quite well in the Update. To me, this is a buy on weakness opportunity, but i'll give it a couple of days to see how market reacts.
The very significant uncertainty is the landfill tax point . The subtlety is that Augean depsite handling hazardous waste pay very low landfill tax relative to the volumes they take in. Various exemptions are being claimed and some must be being queried by HMCE. If these can no longer apply for a significant % of the waste mix then its £ 82.50 a tonne extra per load which would go straight to HMCE but would also double the price a customer has to pay Augean..
Landfill volumes have always been the key to profits for Augean and any uncertainty over the volumes that will come to them is a problem. Volumes will be very high if there is uncertainty as developers and market players rush to get waste off site and into Augean but would fall off a cliff if these exemptions are being removed as the price hike is so significant. They may end up at Augean if the market cannot find an alternative but Augean will not see any £ benefit if so the extra costs they will have to charge will go to HMCE.
A trading update was issued in January last year so we may expect one soon.
There seems no reason to expect anything other than a positive statement. Fingers crossed! Share price seems good value with low PE compared with recent growth in profits and competitive position of the Company.
Surprised by the poor reaction of the market to interim results.
Increased profit and EPS. Reduced bank borrowings. Service a diverse sectors of waste treatment. Not too much competition in the treatment of technically demanding waste stream. So I'll hold on.
Just to say that I've bought a few of these in the last couple of months
They increased profit/cash generation/EPS between 2013 and 2014 at impressive rate. Not on a very demanding PE at current share price. Despite significant investment in the business during 2014, there is a small but growing very well covered divi, and a small reduction in debt.
" AUGEAN PLC (LSE:AUG) has a blue line. It also has a pink one. When we look at what's happening to the share price currently, it seems either one of them is important to the market and critically, should it now close above 57p, it betters ..."
Listed in Money Week 22.8.14 under the heading of "Unloved assets to buy now". Described as an asset rich company with valuable strategic positions ion attractive growth markets ( incinerator ash management and specialist waste treatment of low level radioactive materiel)
Trouble is, that was roughly the description long ago when its share price was around 200p, but it has carried out a major investment programme since.
Good stuff and well done on QPP (not my cup of tea like I said). Markets are at an interesting juncture here, plenty are looking for the correction to continue. I need to sell some gold and miners to buy more stocks but I will hold onto my stocks through any correction that may arise.
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