Oct 02nd 2013 - Edison Investment Research today published a report on Augean (AUG.L, LSE:AUG, LON:AUG) entitled "Structuring To Drive Returns". In summary, the report says:
Augean’s interims showed that the group’s new strategic markets are all delivering to plan while less specialised markets continue to struggle. This is particularly acute in Waste Network, where continued underperformance is anticipated and has led to the decision to exit the commoditised elements of the business and concentrate on total waste management contracts. The accelerated refurbishment of the East Kent High Temp Incinerator will further dampen progress and causes us to reduce FY PBT and EPS forecasts by 24% and 22% respectively. With the exit of Waste Network expected by January 2014, the refocusing of the group will largely be complete, leading to an improved quality of earnings and returns.
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