Augean Dividends - AUG

Augean Dividends - AUG

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Augean Plc AUG London Ordinary Share GB00B02H2F76 ORD 10P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 200.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
200.00 200.00 200.00 200.00 200.00
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Industry Sector

Augean AUG Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

cerrito: I have no Aug at the moment and took advantage of this announcement to see if I should go back in. The reality is that we are flying blind. The lack of construction/demolition activity will have hit them for six. I have no feel for EFW activity. Given current oil prices one assumes that the revenue they get in NSS from current production will be week in coming months although this low oil price will encourage decommissioning. I had never heard of the Fluff layer. At first read it seemed odd that they had not done this filing before but I trust management and it will be some time before the Court of Appeal gets to it. Good news but the £150m marcap seems rather high given current economic activity and the tax unknowns. It does reflect good management and a stable shareholder base. I will continue to sit on the sidelines. Other views welcome.
johndoe23: Most stocks have bounced this past week, seems AUG yet to join the party. Wouldn't have thought a hazardous waste business would be unduly affected by covid 19?Any thoughts/insights welcome...
cerrito: horgan The company will tell you if you ask the, The FD is very responsive. In the meantime I see that Edison has produced a report on Gresham House Strategic whose 7% holding in AUG is 32% of their NAV. I saw the reference to Christopher Mills in 2734..I wonder how many boards he is on..he is on Sureserve where I have shares.
martinc: Long-term, I think the question is that if it is decided that aug should have been paying more tax in the past, then presumably they will have to pay this extra tax on future business as well, which may have have an impact on future profits. I have no idea what this impact is though.
bluebelle: They met forecast, which was widely expected. Fine by me - I don't like surprises ! This has been a core long term hold for me for a while - the one downside is the lack of a dividend at the moment, but we all know about that. I have the maximum % for any one share in my portfolio but, if I didn't I would be happy buying up to at least £3 based on forecast EPS alone!
woozle1: IC from 7/11 has waste sector focus at the back. Although no specific referral to AUG, it talks about the investment in Energy from Waste. The number of incinerators has risen from 33 in 2014 to 47 at the end of 2018 with another 15 in construction. I would expect this to be good news for Augean; despite the questionable environmental efficacy of these facilities. w1
woozle1: Worth reading and provides an insight into where the HMRC dispute is heading. HMRC landfill tax dispute Although Augean has dealt successfully with the operational issues facing the business, the dispute with HMRC remains unresolved. At the H119 results Augean disclosed a potential outstanding Augean 18 October 2019 liability of £37.3m (including interest) and has subsequently (31 July 2019) received an additional assessment of £3.1m and a penalty notice of £4.6m (2 August 2019), taking the current liability to c £45m. A further penalty notice and assessment cannot be ruled out; assuming they are of a similar scale to the recent announcements, the total liability would amount to c £53m. In reality, it is important to remember the dispute with HMRC covers three separate areas of tax, including hazardous mixed load (c £20m of the £53m), biomass ash (£15m of the £53m) and drill cuttings from the North Sea (£10m of the £53m), as well as penalties and interest payments (£8m of the£53m). Augean continues to believe that it has a strong case and that its legal challenge will ultimately be successful. Of course, given the tripartite nature of the dispute, success in one area, but not another, cannot be ruled out. However, with a strengthened balance sheet (net cash of £22.8m at 30 June 2019) and generating cash at the rate of c £1.5–2.0m per month, Augean could, if successful in negotiating a credit facility of c £30m (c 1.2x EBITDA), pay off the liability to the HMRC, while awaiting the outcome of the tax tribunal expected next year. The company believes that such a payment would be beneficial, as it would draw a line under the dispute, bringing to an end the rate of interest accrual on the unpaid potential liability, thus allowing Augean to reduce tax from the interest shield of the debt incurred to pay off the liability. It is also worth noting that HMRC interest is payable at the rate of 4% versus a figure of 2% for bank loans.Future cash flow could be used to pay down borrowings, recommence dividend payments, which have been suspended for the duration of the dispute, or to fund expansion (no policy yet enunciated). Augean has long argued that the UK waste management industry is undergoing a process of consolidation, leaving Augean as either predator or prey. Augean argues that payment to HMRC would not constitute an admission of error (we understand the payment would be expensed as an exceptional item) but remains the only way of securing the benefits of the tax shield.
woozle1: Hi Morton .. what you say is interesting because it would appear a loose/loose: if they AUG are wrong and HMRC are right, then the profits will evaporate; and if AUG are right and HMRC are wrong, the market will become more competitive. In either scenario AUG's margin will come under pressure. w1
interceptor2: Excellent update cerrito. RNS released today confirms the optimistic outlook for North Sea decommissioning work. HTTPS://
cerrito: A good AGM which went on for 75 minutes and all questions well answered by the Chairman, Jim Meredith(JM). First time for about 7 years I have made an AUG AGM-I have been to 2/3 meetings years back and I was the only shareholder there, so it was a bit of a waste of time. About 8 shareholders there. Just one NED- I have no problem with that and the COO, who is not on the Board. JM, who handled virtually all the questions, did something that set the tone in a positive way and is not often done-namely welcome and shake hands with shareholders when they registered. All resolutions passed 90 pc or above. 64m out of the 104m shares voted ie a high turn out ,which one would expect given the shareholder base. HMRC Hardship for the South has not yet been granted. They are still going on the basis that it will go to the Lower Tribunal early next year but warned that with the Tribunal’s backlog, this could be delayed. JM did not want to comment on how long the Tribunal would take to make a decision and then one has the scenario of either party appealing. That said, I have concluded that we need to brace ourselves that by the next AGM there may be no resolution-either because it is in Appeal or that the Tribunal have not decided. He said very little chance AUG and HMRC would cut a deal. AUG felt they have done nothing wrong and HMRC want a definition. Had no hard intelligence if other companies in this space are in the same situation with HMRC. Agreed that not needing to spend as much management time on this now and have strengthened the way they control tax collection/assessment. AUG act as tax collectors for HMRC and required to assess tax payable. As highlighted in the last trading update question of penalties. Depends on how cooperative they have been with HMRC - ie they have done an extensive internal audit and did come up with some genuine errors on which the level of penalties will be modest one assumes. I went into the meeting assuming until this is sorted out AUG will not be undertaking major initiatives and this was implicitly confirmed. Basically running the company for cash and non maintenance capex focused on removing bottlenecks ie in Port Clarence treatment. General business conditions. Commented that ash volumes had been lower than expected as delays in getting plants on stream-something as an ex IRV shareholder I am only too well aware of. North Sea going well and very pleased with the Curlew deal. The Scottish Government has the ability to steer that decommissioning be done in Scotland. There are five ports who can do it, one of which Lerwick is not very functional. AUG are in Dundee and Aberdeen. Curlew will take 3/6 months. That said JM did say that while big picture is great potential in North Sea, in the short term revenues can be very unpredictable. As they have stated in their previous two Trading Updates, radioactive doing well after all the frustrations of recent years. North Sea has naturally occurring radioactive waste. JM was very good at not letting the cat out of the bag in terms of how good things were going and I was surprised to see Friday#s TU. I got a clear takeaway that there will be ups and downs in trading and it will not be a straight line. He said he had to stress to the City that it is not a utility business with predictable revenues. I also gathered that N+I Singer had done a research report with a sensitivity analysis of differing levels of revenue. Brexit Not much of an issue. Going on the basis that they will continue to operate under the current EU regulations and that the UK Government will have, in the short term, other things on their minds and so will not change the guidelines. JM did comment that EU regulations based on tonnage are not fit for purpose for the current environment climate. They do send some waste to the EU. Management Structure To me interesting the pay gap between JM and the FD-respective total compensation is £271K:£354k. This reflects that JM works three days a week. Now that they have finished the general restructuring and indeed the HMRC he is now more of a traditional Chairman. Ps Forgot to ask if they have now collected all the cash from the East Kent sale but no doubt we will be told on July 17 in the interims.
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