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Augean

June 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AUG
  • Price:
  • 147.5p
Augean has acquired Credential Hazardous Waste, a pre-treatment business similar to Proactive which was acquired last August. Credential stores and prepares hazardous materials for bulk transfer to the ultimate disposal location, one of which includes Augean’s Kings Cliffe landfill site. It operates from two transfer stations at Hinckley (Leicester) and Worcester licensed to take hazardous waste including liquids, sludges, solvents, alkalis and oil mixtures. Including freeholds worth £2.4m, Augean is paying £11m for Credential which is expected to have sales of £5m and an operating profit of £1.5m, so an exit multiple of 7.3x. Numis has upgraded slightly to 5.5p t ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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