PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process

Augean

LN: AUG

Market Cap£260.9m

Last Close 248.5p

Augean is a UK-based specialist waste management business. The business operates via two divisions: Treatment & Disposal and North Sea Services.

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Investment summary

The recent trading update for FY20 indicated adjusted PBT was at least in line with FY19 despite the c £4m H120 pandemic impact. H120 sales were reduced by c £10m. The positive momentum in H220 continues to be primarily driven by strong growth in EfW ash treatment. Year end net cash of £6.4m was ahead of our expectations and reflects the continued strong cash flow, with management indicating a return to dividend payments in FY21. Augean continues to pursue appeals for the repayment of landfill tax (LFT) related to engineering materials (fluff layer). Any additional rebates could provide a meaningful reward for investors. While markets remain challenging for the low margin North Sea business, growth continues in the EfW segment and activity has bounced back elsewhere with limited disruption from the renewed lockdowns. FY20 results will be reported on 1 March.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 79.7 18.9 11.4 9.14 27.2 14.8
2019A 107.1 28.8 19.2 20.98 11.8 N/A
2020E 93.5 29.9 19.5 15.21 16.3 8.1
2021E 100.0 32.1 21.7 17.00 14.6 9.5
Industry outlook

A growing trend towards treatment, recovery and recycling in the waste hierarchy supports Augean’s specialist industry knowledge model.

Last updated on 26/05/2021
Content on Augean
Augean – H220 momentum from EfW growth to continue
Industrials | Update | 18 January 2021
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
Augean – Resilient waste lines
Industrials | Update | 29 October 2020
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
Augean – Strong underlying performance in FY19
Industrials | Update | 28 February 2020
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
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Share price graph
Balance sheet
Forecast net cash (£m) 6.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 15.6 22.7 38.1
Relative* 14.7 13.1 15.3
52-week high/low 250.0p/165.0p
*% relative to local index
Key management
Jim Meredith Chairman
Mark Fryer FD