Augean Share Discussion Threads

[azalea] 05/1/2008 14:59

A large article in today's Mail, highlights the growing number of councils using CCTV camera linked to the DVLA, monitoring vehicles using local waste tips. The aim being to trace those dumping illegal waste, especially builders who seek to avoid paying collection, treatment and disposal costs. Serious offenders face heavy fines and even prison.

[azalea] 03/1/2008 17:53

IC 30/3/07
"AUG has double the void capacity at its hazardous waste sites, givng it as much capacity as the rest of the industry put together"

[harrogate] 03/1/2008 17:46

Guys - It is difficult to argue that the management have done anyhting other than a pretty awful job. You have to believe that the HW capacity that Augean paid a lot of money for is going to be worth more than the market currently says it is.

I think it is but that we will have to be patient - I think we may get taken out at £1.50 but it is a gamble at this stage - I don't think we will see 50p but then I didn't think we would see £1 !!!

Augean has suffered in line with other AIM stocks which are down 20% for no good reason on an individual company performance basis so if we get a general recovery then we may get some upside from that

[bob104] 03/1/2008 15:40

Simon Gordon - I would have to agree, David Williams and John Huntington put this shell together. When it started to go wrong, out when the FD, then John Huntington but Williams still hanging on!! So far they have spent at least £135m buying companies, with what return.

[simon gordon] 03/1/2008 15:34

Based on the dialogue I have read on this thread I think bob104 knows what he's talking about!!

My view is that AUG has a flawed strategy and that the Chairman should be fired.

The only hope for upside is a takeover and as confidence steadily drains away from this stock, the risk is that you will see 50p before £1.50.

You don't get paid whilst waiting, so I think this is a dead place to invest capital.

Good fortune!!!

[bob104] 03/1/2008 15:30

Azalea - Augean are not the leader in this field. They are not even second or third. "Whether they like it, or, not, producers of hazardous waste will have to use those who are licenced to deal with same" - The simple mater is that Augean have a lot of competition and they are not dealing with it very well. Some of the competition you could look at are : Tradebe Ltd, PHS Group, Wm Tracey Ltd, Viridor, Veolia , SafetyKleen, Castle Environmental, SITA, SRM, Grundon, WRG, Acumen, Red, Chemtech. There are many more but the truth is that Augean need to get better at competing in the market

[azalea] 03/1/2008 14:10

"The only companies that are unaware of this legislation are the small waste producers and there are lots of them".

"The EA does not have the resources to police the vast amount of waste producers". In which case hundreds amongst the "vast" numbers are very likely to violate waste disposal regs.

Whether they like it, or, not,producers of hazardous waste will have to use those who are licenced to deal with same. AUG is a leader in that field.

We could dance round these issues forever.

[bob104] 03/1/2008 12:11

Azalea - I did not say these private companies were small and a number of them have the backing of large private equity companies. Neither did I say that waste producers were not prepared to pay. What I am saying is that waste producers are aware of the legislation and they are paying waste management companies to deal with it. However, Augean are failing to increase there market share and moreover they will continue to fail if they do not change their strategy. Waste producers do not like using Hazardous Landfill and are increasingly moving away from this. Augean have invested over £100m in hazardous landfill and they need to move away from this quickly. This will not be achieved by buying small recovery businesses outside the hazardous waste market (Hitech). As to 151, I would want to guess

[azalea] 03/1/2008 11:48

Bob
There are thousands of small companies producing waste of all sorts- biodegradable, solids, chemicals and oils, hence the reports of streams and rivers being polluted. You appear to be suggesting that a large number of waste producers are neither ignorant of the regulations, nor prepared to pay waste management companies to handle their waste and instead dumping it en mass. Small private waste management companies will suffer from extra regulatory costs and the inability to bid for the larger contracts. In AUG case, the $64 question is,what will 151 Ltd do with its stake.

[bob104] 03/1/2008 11:25

Azalea - The only companies that are unaware of this legislation are the small waste producers and there are a lot of them. However, this is not the market that Augean targets. The Environment Agency (EA) does not target the waste producers unless there has been a very serious breach. The EA does not have the resources to police the vast amount of waste producers and therefore will concentrate its efforts in policing the waste management industry. Hence the waste producer benefits in the end. Its not all bad for the waste industries but the most exciting companies are all (unfortunately) in private hands. Augean need to stop buying little insignificant companies and go all out to buy these.

[azalea] 02/1/2008 17:56

bob104
I'm talking about companies that produce the waste and are unaware of/noncompliant with increasing EU legislation coming into force. As these companies become more aware - through fines/enforcements etc, so the waste management companies across the board will benefit. Hence where there's muck ....! This situation was profiled several months ago in the IC.

[bob104] 02/1/2008 16:00

Azalea - What are you reading to get your information; ALL of the companies that operate in the industry have been operating at the highest standard for many years. The majority of companies exceed all the pending legislation.

[azalea] 31/12/2007 17:58

Where there's muck there's brass.

A happpy and prosperous 2008.

[haydock] 31/12/2007 09:43

Perhaps it's time for the old referee's reminder.

"You don't know what your doing!!!!!"
"You don't know what your doing!!!!!"
"You don't know what your doing!!!!!"

[azalea] 29/12/2007 08:12

2008 could be the year for 151 Ltd to 'put up, or, shut up'. Having amassed such a large stake, I am betting it will 'put up'.

[alfred] 29/12/2007 08:08

I reckon the Irish could make a better job of running this company.

[azalea] 24/12/2007 08:42

Landfill/ hazardous waste treatment will both have to meet EU regulations. Many UK companies have still to get their act together in realising what its going to cost them.

[stemis] 23/12/2007 13:27

Other than they are both involved in waste, there is little comparable between BIFFA and Augean.

BIFFA occupies a space where long term (25 year) contracts are being let by (blue chip) local authorities to divert municipal waste from landfill. These contracts give high, long-term visibility of revenue backed up by blue chip customers. Their customers are driven by huge financial (increasing landfill tax and potential LATS fines) and regulatory (BVPI etc.) pressure to do this. This is why private equity are interested.

Augean is principally a landfill operator whose customers are driven to avoid landfill. They generally operate on the spot market with a multitude of customers of varying credit worthiness.

Chalk and cheese.

Augean may be a good potential investment, but its not because of anything thats happened to BIFFA.

[azalea] 22/12/2007 12:10

With an estimated £11bn investment to bring the broad span of UK waste disposal operations into line with EU regulations and standards, efficient operators will have the opportunity to earn some significant rewards. As demonstrated by the current appproach for Biffa and AUG two acquisitions in as many months, consolidation in the sector is to be expected. One Fifty One's plans will be crucial in deciding AUG future.

[cerrito] 22/12/2007 08:28

From Firday 21 Telegraph
quote
Augean
92½p+3
Questor says Hold

IT'S been a mucky few years for Augean, but investors in the hazardous waste management group will be hoping that yesterday's acquisition helps pave the way for it to clean up its performance.

News that the £62m company had bought Hitech Equipment was well received. This new business has a hazardous waste treatment and recycling facility in Paisley, Glasgow, and another industrial services operation in Ellesmere Port, north-west England.

The £6.25m deal is to be financed by existing bank facilities, and a further £750,000 will be due in 2009 if it meets certain performance criteria.

Analysts have welcomed the purchase, which Augean spread geographically, and offers some cross-selling opportunities.

Augean has disappointed with a string of profit warnings as the hazardous waste business hasn't been as lucrative as it had hoped. However, a recent boardroom reshuffle and new opportunities may help the group begin a turnaround.

It is still unclear what One Fifty One, acquisitive Irish conglomerate, plans to do with a 27pc stake in the company. For the brave, it's a hold.

[azalea] 21/12/2007 17:57

Applicable employee under the AIM rules, buys first 16,000!

[azalea] 21/12/2007 11:45

Hmmn, two trades - 175k and 158,922 @ 93.5p!

[azalea] 21/12/2007 11:07

haydock
I am not sure, but I think there are rules that apply when a bidder has made a bid previously.

[felix99] 21/12/2007 11:01

think rule is highest price paid in last 6 months from date of offer

[harrogate] 21/12/2007 09:38

I don't think so after such a long period of time