Augean Share Discussion Threads

[azalea] 20/5/2008 11:51

The only news I am waiting for this year is a bid from 151 Ltd.

[chrisdgb] 20/5/2008 11:12

looks set to break through 90p.....anyone expecting news soon??

[site manager] 16/5/2008 18:21

mmm a 12 month high of 151p

[foreverbull] 16/5/2008 13:07

Come on Augean....show us 100p......

[chrisdgb] 16/5/2008 08:26

Slowly but surely rising, looks interesting....

[lbo] 14/5/2008 10:42

One51's €250m war chest for further acquisitions

INVESTMENT FIRM One51 will shortly have funds at its disposal to spend more than €250 million on new acquisitions after the conclusion of six deals in Ireland, Britain and Canada in recent months, according new research by Davy stockbrokers.

One51, led by financier Philip Lynch, declined to disclose its expenditure on such deals. These include the purchase of a 33 per cent stake in Ontario-based recycling firm Global Electric Electronic Processing Holding last October, and the purchase of Cavan-based plastics extrusion firm Foamalite in December.

One51 bought recycling firms Howarth and Howcan Metals in north-west England in January and in March it bought out Ampthill Metal Company of north London and Anywaste Solutions in Kent. In April it acquired AAC Plastics in Staffordshire. Davy believes One51 still has €200 million of available debt facilities at its disposal after the transactions. It also says the firm stands to receive some €60 million from a liquidity event at NTR, the utility group in which it has a 25.38 per cent stake.

"Given that net debt stands at less than 25 per cent of enterprise value, One51 has plenty of scope to drive investment-led growth in its core environment services division and to continue to make investments across its portfolio (including renewable, infrastructure and food) for anticipated value upside," the broker says.

"The expected distribution from NTR after its sale of Airtricity will amplify its investment spending power. It also has other cashable holdings in its portfolio."

One51 shares currently change hands on a grey market at €5, but Davy suggests the current "equity value" of the stock is in the region of €6.19. "We estimate One51's total enterprise value at €1.05 billion, an uplift of 26 per cent on our September 2007 valuation. Less estimated net debt of €240 million, this implies a current equity value of some €810 million or approximately €6.19 per share."

The shares were listed at €5.75 in October on a grey market run by Davy and closed their first day of trading at €6, implying a valuation of €714 million on One51.

Davy says the firm has been "active" since then with investment activity, and says the development of discrete management and reporting structures in its business units will improve its efficiency. "Environmental services, the group's key earnings before interest, tax, depreciation and amortisation (EBITDA) and cash flow division, has added a number of significant acquisitions which extend its scope and geography.

"We estimate that this division now has an EBITDA run-rate of circa €55 million, a near-fivefold increase since 2006. Current market valuations would put an enterprise value of over €550 million on this activity, representing half of the estimated group enterprise value." The other 50 per cent is represented by investments in NTR, Open Hydro, Irish Continental Group, Greenore Port and Irish Pride Bakeries. "Some of these investments may not remain permanent within its portfolio, but some could become strategic and core," Davy says.

[cyberian] 13/5/2008 18:29

Someone wants some stock 37,000 plus bought late today at 84p...interesting, maybe?

[cyberian] 12/5/2008 23:59

The write-down was non-cash and the company is well positioned to make very attractive return...cash-flow will be strong and our Euro holder currency friends (investors/partners) have the ammo. if they are attracted to the business here and should/could perhaps be wise to fund in the Euro as I believe the latter will suffer against the pound later this year...buy soon and reap a strong and growing £sterling revenue stream! Looks like the buying today was entirely driven by the FT article, and the share price could fall back again despite some lumpy (large) trades over reecnt weeks.

[foreverbull] 12/5/2008 19:42

Thanks deep powder.
BTW good rise today.

[deep powder] 12/5/2008 14:04

FT article:

Shares in Augean have appeared toxic. The hazardous waste specialist shares have almost halved in little over a year as it faced difficult trading conditions with three changes of chief executive and regulatory reforms in the industry. However, shares have begun ticking up in recent weeks, refuelling speculation of a takeover. Since the end of March, shares have risen 16 per cent, equivalent to an annualised rate of 340 per cent. This has reignited the suggestion of another acquisition in the sector, following Biffa's approach by a private equity consortium led by Montagu Private Equity. Management have admitted errors. They were slow to anticipate the need for pre-treatment of hazardous waste under new guidelines. These issues are now largely resolved. Full-year results in March were solid. Revenues excluding landfill tax grew 5 per cent to £22.6m, though pre-tax profits fell from £2.3m to a loss of £23.9m, due to an impairment charge of £27.6m.

[foreverbull] 12/5/2008 08:51

deep powder - 11 May'08 - 12:13 - 1249 of 1250


nice article in yesterday's FT about the company, highlighting stock has been stronger of late on takeover rumours............


DEEP, Would you post link of FT artcile please
Thanks

[azalea] 12/5/2008 07:55

deep powder
Thank you for that info.

cyberian
I agree. I believe 151 Ltd will make its move this year. Major holders are still holding on tight.

[deep powder] 11/5/2008 12:13

nice article in yesterday's FT about the company, highlighting stock has been stronger of late on takeover rumours............

[cyberian] 30/4/2008 16:43

One big trade representing 1.14% of company...so a little clearing-up here, but at least some reasonable action? Also noted a slightly tighter spread so maybe some good two way trading which the MM's maybe encouraging to shake-out some stock of size??

[deep powder] 30/4/2008 15:58

Better volume today.....

[cyberian] 24/4/2008 21:31

Trading a little erratic as free share float appears tight...guess one can play the recent range levels, but should keep a core holding in case of potential bid.

[cyberian] 23/4/2008 15:39

The isolated 90,000 trade at 82p would suggest (perhaps?) that mm's or someone happy to get some stock. With the Euro currently strong it may encourage a Euro buyer (Dutch or Irish) to make a move as there has been some suggestion that the Euro may weaken later this year...15% higher than a few months back. The recruitment info is interesting as very current....maybe a false lead but who knows?? The sector is one that will only grow and with regulatory issues helping...that is provided the management profile and compliance remains good. Kinda interesting moves although tended to trade within a 70p to 84p range...we could get a small pull-back.

[azalea] 23/4/2008 14:35

This year, or, it's never!

[chrisdgb] 23/4/2008 11:52

I have a hunch a bid is being worked on and institutional investors have been made 'inside'........

[lbo] 23/4/2008 11:50

One51 plc wishes to appoint a Managing Director/Country Manager for its Recycling and Treatment Division in the UK.

[chrisdgb] 23/4/2008 11:01

Agree there, looks tight today.......

[deep powder] 22/4/2008 16:06

Strange share this one, feels like it is trying to break higher, fundamentals of the sector/consolidation remain very much a feature.

[cyberian] 18/4/2008 14:59

After last Friday's rally some almost same time small selling appears to drag the share price down a bit...like the recent 2 trades for 15,000 and 5,000. Could be being managed to test the reaction for a take-out or accumulation of stock...but who knows. 151 Ltd. or the huge Dutch J/V partner may want to use the Euro strength to buy AUG entirely. Gather blocks of shares are held so price would have to be reasonably convincing, although some holders may prefer an exit for cash. Any thoughts??

[azalea] 14/4/2008 16:19

An interesting insight. Whilst 151 Ltd share price may have only drifted back a touch, its continues to bear a very significant paper loss on its stake in AUG. Lets hope we see investors in the former making noises over the latter.

[lbo] 14/4/2008 11:29

Larry Goodman one of One51's biggest backers





Companies: AUG
14/04/2008
Hazardous waste management specialist Augean sounds optimistic after lifting profits before tax and exceptional items eight per cent to £3.8 million.

The AIM-quoted company, which handles landfill sites and treats waste elsewhere, increased turnover by five per cent to £22.6 million last year. Under new accounting standards, a £26.8 million goodwill impairment charge in the landfill division sent Augean into the red to the tune of nearly £24 million, but this did not affect cash flow, which rose 23 per cent to £7.7 million.

Now headed by Paul Blackler, an internal appointment who replaced Peter Worllidge as chief executive officer in December, Augean made several acquisitions last year and is maintaining its expansion strategy. The company now places more emphasis on waste treatment, where it sees better growth potential than in simple landfill management.

Floated at 125p in 2004, Augean shares have had a chequered career, rising to 237.5p in April 2005 before crumbling to 69p last month. They have rallied modestly to 82.5p, up 5.5p today, at which price they value the company at £54 million.