The board’s priority continues to be the creation of long term shareholder value.
The group is focused on the management of specialist wastes, usually of a hazardous nature and often in niche markets, using proven technology to fully utilise the group’s assets and enhance the return on capital employed.
The Strategy for Hazardous Waste Management is a key government policy document promoting the development of a modern hazardous waste management sector based on the waste hierarchy. The Strategy has a strong emphasis on investment and development of new infrastructure for hazardous waste treatment and recovery, in particular for organic waste. It is underpinned by the implementation in England and Wales of the Waste Framework Directive and hazardous waste hierarchy guidance. Anticipating the direction of policy travel, the Augean business model developed over the last five years is strongly aligned with the Strategy. Augean is therefore well positioned to take full advantage of the policy as the market evolves.
Given the focus of the group and the efforts to align with the regulatory framework strategy has continued to evolve in response to new market information and emerging opportunities. During 2010 four strategic growth areas were identified, namely: Low Level Waste; Energy; Offshore; and Minerals. These opportunities are at varying stages of development and delivery, building on the existing core business.
Within the core business the group operate nationally providing an invested platform and the infrastructure to deliver revenue and profit growth. From January 2012 the group has reorganised its operations and now operates through three divisions, utilising an established asset platform and business infrastructure to deliver growth within and beyond existing business sectors.
Within the Land Resources division each opportunity is derived from the effective utilisation of the available land bank, either through the existing landfill assets, or the development of new land uses. Land use opportunities are also being unlocked by the group in the development of renewable energy and also the extraction of minerals available at our sites.
The Waste Networks division holds significant strategic value for the Group, providing a broad range of waste management solutions to our customers, supported by a national network of transfer stations. The division has the sales and operational capability to deal with a range of hazardous wastes ensuring that each is transferred to the most appropriate final disposal route, either within the group or with third party providers.
The Oil & Gas Services division has expertise in the treatment and disposal of various chemicals and oil-based wastes, including those generated in the offshore oil & gas sector. The division continues to focus on expanding its customer base to offer services which fully utilise assets providing thermal, biological and mechanical treatment solutions for domestic and offshore customers.
Strategic development and the shaping of the divisions in response to the emerging markets will continue as the group responds to changes in the waste markets aligns its key services with market needs. Where investment is required to realise strategic opportunities the group will utilise its existing loan facilities in the first instance, where capacity exists to increase its debt in response to investment needs. Regular updates are provided to investors as and when new milestones are reached.