Augean (AUG)

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977
Augean AUG Logo

One of the UK’s leading specialist waste management businesses.

16-Oct-2017 – 27.25p – £28m

Trading Update – This doesn’t sound positive – “The impact of the HMRC assessment, which the board believes will not be resolved imminently, as well as a continued weaker trading performance, is expected to lead to full year profit being below the level of 2016 with 2018 also expected to be lower than previous expectations”.

I would be concerned that this company may not even be around in 2018!

18-Sep-2018 – 45.5p – £46.6m – PER 6.49

Interim Results For The 6 Months To End June 2018 – Adjusted Revenue (before landfill tax) up 6% to £32.9m (2017: £30.9m), Adjusted PBT up 36% to £4.5m (2017: £3.3m), Net debt improved to £2.7m (December 2017: £10.8m) – The rate of cash generation will slow in H2 as the capital spend to maintain landfill capacity will increase. Basic Adjusted EPS is up 21% to 3.18 pence (2017: 2.62p).

That outstanding landfill liability issue with HMRC means I will remain Neutral for now.

21-Nov-2018 – 42.5p – £44.1m – PER 5.48

Trading Update – FY Adjusted PBT to materially ahead of market expectations – Moved to a cash positive position with all bank debt repaid.

Attractive enough but there’s still that unknown – Outstanding landfill liability issue with HMRC (in this update it states “no further update on the assessment notifications from HMRC recently), I remain Neutral.

9-Jan-2019 – 70p – £72.7m – PER 7.69

Trading Update For The 12 Months To End December 2018 – Expects to be in-line with previously upgraded expectations with higher Net Cash than expected (£8.2m).

I still cannot be tempted here whilst that outstanding issue with HMRC remains.

26-Feb-2019 – 84p – £87.2m – PER 9.3

Results For The 12 Months To End December 2018 – Looks pretty good but there is still that outstanding issue with HMRC (£30m or so).

I still cannot be tempted here whilst that outstanding issue with HMRC remains.

1-May-2019 – 92p – £97m – PER 10.6

Trading Update For The 12 Months To End December 2018 – Profit expected to be materially ahead of market expectations.

Still an outstanding HMRC issue so I will remain on the side-lines until that’s resolved.

21-Jun-2019 – 119p – £124m – PER 11.7

Trading Update – Expects FY 2019 to be ahead of market expectations, Net Cash at £20m.

One thing that stops me investing here is some outstanding HMRC issue – Must look into this a little more, wondering if the £20m Net Cash now covers (I think last I checked potential liability was £30m).

17-Jul-2019 – 121p – £125m – PER 10.5

Results For The 6 Months To End June 2019 – Revenue up 40%, Adjusted PBT up 100% and EPS up 114%, Net Cash at £22.8m (up from £8.2m). Expects to exceed FY market expectations.

There’s almost enough Net Cash to cover the potential HMRC liabilities (circa £30m) if not resolved but it’s still enough to put me off for now.

16-Oct-2019 – 118p – £123m – PER 10

Trading Update – Strong Q3 means FY Profit will be materially ahead of current consensus of Adjusted PBT of £16.5m.

I have been put off here for almost 2 years, since 27p, due to the HMRC concern, a costly concern I now put down to one that got away!

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