small cap with potential for fast returns

Tox Free Solutions has 14 waste management facilities and 13 industrial service branches across Australia amid the company developing an integrated business model. “Tox has Australia’s only commercial waste incinerator (at Port Headland in WA) and licences for others, which provides a sizeable barrier for entry,” Marshall says. “Tox has secured contracts with Woodside Petroleum and the Gorgon projects, and has been re-rated after the reporting season despite delivering a disappointing 2009 full-year result. We believe this is a reflection of the market looking through the result and seeing last year as a period of consolidation post expansion in the previous two years.” Marshall says Tox is well placed to secure additional waste contracts under discussion, out to tender, or likely to emerge in future. “Shaw research estimates that these potential wins will add about 30 per cent to the company’s annualised revenue during the next three years at high margin,” he says.