Augean : Board Changes and Trading Update

16 October 2017

Augean plc

('Augean' or the 'Group')

Board changes and trading update

Augean, one of the UK's leading specialist waste management businesses, today announces changes to its board and also provides an update on trading.

The new board will comprise:

Resignation of Chief Executive

Stewart Davies has resigned from his position as CEO of Augean by mutual consent with immediate effect.

Appointment of Executive Chairman

Jim Meredith, currently the Non-Executive Chairman of the Group, will expand his role to that of Executive Chairman and lead the business through its ongoing re-structuring and cost reduction programmes.

Appointment of Non-Executive Directors

Christopher Mills and Roger McDowell have beenappointed to the board as Non-Executive Directors with effect from 16 October 2017.

Christopher founded Harwood Capital Management in 2011, a successor from its former parent company J O Hambro Capital Management, which he co-founded in 1993. He is investment manager of North Atlantic Smaller Companies Investment Trust plc and is a non-executive director of several companies. Christopher was a director of Invesco MIM, where he was head of North American investments and venture capital, and of Samuel Montagu International.

Roger returns to Augean having previously been a board member of the Group for 11 years between November 2004 and June 2015. Roger brings valuable experience as a successful businessman and entrepreneur, with a strong record of driving shareholder value and serving on the boards of public companies across a range of sectors.

During his previous tenure on Augean's Board, Roger held the position of Interim CEO (2006 - 2007) and Interim Chairman (2010 - 2012). He was Managing Director of Oliver Ashworth for eighteen years before its sale to St. Gobain. He is currently serving as Non-Executive Chairman of Avingtrans plc, Senior Independent Non-Executive Director of Servelec Group plc and is also a Non-Executive Director of ThinkSmart plc, Tribal Group plc, Proteome Sciences plc and Swallowfield plc.

Trading and HMRC update

As previously announced, Augean remains in active discussions with HMRC with regard to a landfill tax assessment. The impact of the HMRC assessment, which the board believes will not be resolved imminently, as well as a continued weaker trading performance, is expected to lead to full year profit being below the level of 2016 with 2018 also expected to be lower than previous expectations. The Board has therefore implemented a further round of cost reduction including a management re-organisation, to save at least a further £1.7m of cost annually. This is incremental to the saving of £1.3m already announced in September. The one-off cost of this will be approximately £0.9m and will be shown as an exceptional cost (in addition to the £0.7m for the first round of cost saving). The additional cost savings are expected to be realised fully in 2018 with the one-off exceptional costs incurred in 2017.

Jim Meredith, Executive Chairman, commented: 'These new appointments greatly enhance the breadth and depth of the board as well as adding additional commercial experience. We are pleased to welcome back Roger who has extensive operational experience of Augean from his previous 11 year tenure as a director. In addition, Christopher brings with him significant experience of achieving operational excellence and growth while seeing through efficiency and cost reduction programmes.

'We wish Stewart well in his future endeavours and thank him for his efforts whilst Chief Executive of Augean.

'The Group has been through a difficult period but I believe its underlying business remains strong and that our strategy and new board now in place will see the Group make solid progress.'

- Ends -

Enquiries:

Regulatory disclosures

In accordance with Schedule 2(g) of the AIM Rules, Christopher Harwood Bernard Mills (aged 64) holds or has held in the past 5 years the following directorships and partnerships:

Christopher Mills is interested in 18,400,000 ordinary shares being 17.89% of the Company's issued share capital. 10,800,000 ordinary shares are held by North Atlantic Smaller Companies Investment Trust Plc ('NAIT'), 7,500,000 ordinary shares are held by Oryx International Growth Fund Limited ('Oryx) and 100,000 ordinary shares are held by Harwood Capital LLP ('Harwood'). Harwood is investment manager to NAIT and investment adviser to Oryx. Harwood is a limited liability partnership of which Christopher Mills is a partner and Chief Investment Officer. Christopher Mills is also a shareholder and director of both NAIT and Oryx.

Christopher Mills has been a director of the following companies which have been placed into liquidation or receivership/administration:

All creditors paid in full:

· Nationwide Security Group plc - Receivership completed 2 March 2005

· Tricor plc - resigned 3 February 2003 - Voluntary arrangement completed 2 April 2014

Companies that went into administration and creditors lost money as a result of liquidation:

· Valiant Sports Holdings Limited - Creditors' voluntary liquidator appointed on 2 April 2013. The estimated deficiency to investors and creditors was £2,667,085

· Jarvis Porter Group plc - Administration completed 28 August 2008 - a dividend of 3 pence per share was paid to unsecured creditors

· United Industries plc - resigned 28 October 2005 - Administration completed 26 January 2008. The estimated deficiency to investors and creditors was £48,142,869

· Versatile Group Limited - Administrative receiver appointed 3 September 1998 by Bank of Scotland who had charges and cross guarantees supporting a debt of £2.4 million. In addition, the group had estimated deficiencies as regards creditors of £0.6 million and total estimated deficiencies in excess of £0.7 million. Versatile Group Limited was struck off the register on 15 May 2001

Administration ongoing:

· Team Rock Limited - Christopher Mills is no longer a director - Administrator appointed 12 December 2016

Christopher Mills was appointed a director of the following companies on 23 December 2009 after they were purchased by J O Hambro on 23 December 2009 whilst they were in Administration. The preferential creditor agreed to discharge part of the claim it held against the company and all other creditors were paid in full:

· W.G. Mitchell (2005) Limited

· W.G. Mitchell (Charlotte Square) Limited

· W.G. Mitchell (George Street) Limited

· W.G. Mitchell (Enterprises) Limited

· W.G. Mitchell (Fifteen) Limited

· W.G. Mitchell (Seven) Limited

Save for the disclosures above, there are no further disclosures to be made in accordance with Rule 17 and Schedule 2(g) of the AIM Rules in respect of Christopher Mills.

In accordance with Schedule 2(g) of the AIM Rules, Roger Steven McDowell (aged 62) holds or has held in the past 5 years the following directorships and partnerships:

Roger McDowell is interested in 3,000,000 shares in Augean representing 2.92%of the current issued share capital.

Save for the disclosures above, there are no further disclosures to be made in accordance with Rule 17 and Schedule 2(g) of the AIM Rules in respect of Roger McDowell.