BINGO provides an update on impacts of COVID-19

BINGO provides an update on impacts of COVID-19

BINGO has withdrawn its FY20 earnings guide as a result of the impact of COVID-19, but highlighted it remains well positioned over the medium term to capitalise on positive future regulatory and market tailwinds underpinning the business.

In a statement, BINGO highlighted as a result of measures announced by both state and federal governments to close non-essential gatherings, commercial and industrial waste volumes are likely to be impacted.

The greatest impact is expected to be in the commercial, retail, hospitality and shopping centre end marks.

“Although we have seen minimal disruption to existing construction projects, disruptions to the supply chain arising from the COVID-19 as well as economic dislocation are expected to result in some delays to the commencement of new projects,” the statement said.

“We expect this will continue in the short-term and will likely impact volumes and market pricing in the building & demolition (B&D) sector. As and when activity recovers, BINGO would expect to benefit from government stimulus packages aimed at fast tracking infrastructure and construction activity.”

The company highlighted its strong balance sheet, backed by significant property assets, noting it was confident it can meet all future cash requirements.

“We are taking proactive measures to ensure the safety of our people, sustained services to our customers and the preservation of cash flow to ensure the business is in the best position possible.”

BINGO Managing Director Daniel Tartak said the company had a strong first three quarters of FY20 and is in a solid financial position.

“Our customers are our partners, and we will continue to work with them to ensure safe and ongoing collections and waste services during this time,” he said.

“First and foremost, we are taking all the necessary precautions to safeguard the safety of our people. We have also proactively implemented business continuity plans to ensure our business continues to operate efficiently during this time of great uncertainty.”

“Despite the immediate challenges from COVID-19, BINGO remains well positioned over the medium- term to capitalise on the positive future regulatory and market tailwinds underpinning the business.”

Last year, Bingo Industries acquired Dial A Dump Industries (DADI) and set its sights on building a resource recovery park as part of the acquisition.

BINGO Industries agreed to divest its recycling facility in Banksmeadow, NSW to ease ACCC competition concerns regarding its $578 million acquisition of DADI. The ACCC required Bingo to divest the facility to maintain competition for B&D processing in Sydney’s eastern suburbs.

Following this, the ACCC announced it would not oppose the acquisition after accepting a court-enforceable undertaking from BINGO to divest its Banksmeadow processing facility. CPE Capital was announced as the buyer for $50 million in September.

In announcing the company’s full-year results in August, Daniel noted that the asset base secured through the acquisition would transform the business for many years to come. Some of its most recent redevelopments include Bingo’s first recycling centre in West Melbourne, Victoria, having first entered the market in 2017 through several strategic acquisitions.

X