TIDMAUG

RNS Number : 0300I

Augean Plc

16 March 2018

16 March 2018

Augean plc

("Augean" or "the Group")

Disposal of AIS Limited

Augean, one of the UK's leading specialist waste management businesses, today announces that it has disposed of the entire issued share capital of total waste management broker, AIS Limited to Regen Devco Limited, a subsidiary of Regen Holdings Limited with immediate effect. The main financial terms are:

-- An initial consideration of GBP3.0 million with a further GBP0.8m on agreement of completion accounts and further amounts expected for delivery of working capital over normalised levels;

-- AIS Limited's revenue, EBIT before central costs and loss before interest and tax after central costs for the year ended 31 December 2017, was GBP8.0 million, GBP0.5 million and a loss of GBP0.4m respectively;

-- Net cash outflow for the year ended 31 December 2017, before central costs, was GBP0.6m and net

assets at 31 December 2017 were GBP2.3m. The profit on sale is expected to be GBP1.3m after costs of sale and provisions. This will be reported as exceptional in 2018;

   --      Disposal proceeds will be used to pay down existing debt facilities.

As part of the disposal, all 35 AIS employees will transfer with the AIS business. AIS has signed a three-year exclusive supply agreement to use Augean for its hazardous waste disposal and treatment. This will include the East Kent High Temperature Incinerator which Augean will retain.

Jim Meredith, Executive Chair, commented:

"We are pleased to announce the disposal of AIS to Regen Devco while retaining the ongoing hazardous waste disposal. This transaction forms part of our plan to streamline the Group, concentrate on cash generation to reduce debt and focus on rebuilding the core strengths of the Group moving forward."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For more information please contact:

 
Augean plc 
 Jim Meredith, Executive Chair 
 Mark Fryer, Group Finance Director        01937 844 980 
 
N+1 Singer (Nominated Advisor and Broker 
 to Augean) 
 Shaun Dobson 
 Alex Price                                020 7496 3000 
 
FTI Consulting (Financial PR to Augean) 
 Fiona Walker                              020 3727 1000

This information is provided by RNS

The company news service from the London Stock Exchange

END

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March 16, 2018 10:26 ET (14:26 GMT)

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