Augean’s subdued operational performance has continued after its first-half outcome was dampened by severe winter weather in January and February - that hit volumes at its landfill and waste recycling facilities. But volumes improved towards the end of the period and this trend has continued through the third quarter.
In fact, increasing landfill volumes from brownfield remediation projects is being driven by the impending expiry of landfill tax exemptions for such projects at the end of 2012 - so it's a trend that should continue to build. Management has also attempted to expand the breadth of the customer base that use Augean's waste treatment facilities, which includes taking offshore oil and gas drilling waste and waste from oil refineries.
Augean is also developing its assets to provide new revenue streams such as energy generation from landfill gas, which should commence at Port Clarence in Cleveland next year. Planning is also being pursued for the extraction of limestone adjacent to its Thornhaugh landfill site which will allow 3m tonnes of aggregate to be sold and a new landfill void created in the process. Furthermore, a government-level decision should be made early next year on planning permission for a low level nuclear waste facility in Northamptonshire.
AUGEAN (AUG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28p | MARKET VALUE: | £27.9m | |
| TOUCH: | 28-31p | 12-MONTH HIGH: | 51p | LOW: 22p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 45p* | NET DEBT: | 11% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 16.8 | 0.67 | 1.0 | nil |
| 2010 | 16.3 | -0.43 | -0.4 | nil |
| % change | -3 | - | - | - |
*Includes intangible assets of £21.8m, or 22p a share | ||||
