Bingo Industries has announced its half year results for the 2018 financial year, reporting strong net revenue growth of 43 per cent.
The company’s net revenue has increased to $142.4 million compared to this time last year, which according to its1H FY18 half-year results, reflects business momentum and increased market share.
The acquisition of National Recycling Group and Patons Lane Recycling Centre, announced in December, 2017, are noted as performance highlights in its half-year results.
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CEO of Bingo Daniel Tartak said he was pleased to deliver another strong result.
“We have successfully executed several acquisitions in accordance with the strategy outlined at the time of our listing. These acquisitions have facilitated our entry and expansion in Victoria and consolidated our position in New South Wales, ahead of schedule.
“We have grown our network capacity by 70 per cent since listing in May 2017 to 1.7 million tonnes per annum and remain on track to double our footprint by 2020, to meet growing demand for recycling,” he said.
“This demand is underpinned by population growth, major infrastructure programs in Sydney and Melbourne, growing waste volumes together with diminishing landfill capacity. Meanwhile, we remain firmly committed to delivering a recycling recovery rate across the network in excess of 75 per cent, the highest in the industry.”
Broken down by segment, revenue in its collections sector increased by 29.1 per cent to $78.5 million and pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 18.9 per cent to $18 million, primary driven by increased market share in the NSW building and demolition and commercial and industrial waste streams.
The number of collection vehicles was boosted from 173 to 253 over the year, after taking into account the fleet acquired with the acquisitions in the first half.
Its post-collections revenue went up by 53.4 per cent to $81.8 million and pro forma EBITDA increased by 53.2 per cent to $24 million as Bingo saw further market share in NSW.
In terms of the outlook, the results note the positive business momentum has continued into the second half of financial year 2018. The company concluded it remains on track to deliver its recently upgraded FY 18 pro forma earnings before interest, taxes, depreciation, and amortisation guidance of approximately $93 million. Completed acquisitions are expected to contribute more materially in the second half of FY18.
“Our work in hand with and pipeline provides strong revenue visibility and we remain confident of achieving our upgraded earnings guidance for the year. Our focus is now firmly on bedding down our recent acquisitions to deliver our targeted synergies and leverage the scale advantage we have across our markets,” Mr Tartak said.