A consortium led by Australian private equity firm CPE Capital has made a $2 billion bid to buy ASX-listed company BINGO Industries.
Waste-to-energy provider Environmental Group Limited has entered a purchasing agreement for RCR Tomlinson’s Energy Services business, to be completed in January.
Planet Ark has announced it will renew its partnership with Bingo Industries Limited to continue the companies’ commitments to diverting waste from landfill and moving towards a circular economy.
The partnership will now focus on making Bingo the most sustainable company on the Australian Stock Exchange (ASX) by creating a solar power network through the installation of solar panels on the rooftops of Bingo’s recycling and recovery facilities.
The partnership originally began in 2011 and has seen Planet Ark and Bingo collaborating on sustainability initiatives including a waste education program for primary schools aimed at building awareness and encouraging positive environmental practices.
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Bingo Chief Executive Officer Daniel Tartak said the seven-year partnership with Planet Ark has been invaluable.
“What we have been able to achieve together is something I am very proud of and with our renewed partnership we will be striving for even bigger, more ambitious sustainability goals,” Mr Tartak said.
“Our aim is to lead the industry in sustainable business practices and be a steward of change by increasing the diversion of waste from landfill and investing in new state of the art technology to increase recovery rates,” he said.
Planet Ark Chief Executive Officer Paul Klymenko said Planet Ark is proud of the partnership and relationship with Bingo Industries.
“It’s been very rewarding to work with what was once a small family owned skip bin company and see it grow to become an exemplar for others in the recovery and recycling of building and demolition waste,” Mr Klymenko said.
“They are major disruptors in the industry and together we are shaping the way forward for the waste industry.”
“For the next phase of our partnership, we’re excited to help make Bingo the most sustainable company on the ASX. We will achieve this by installing solar and smart battery energy systems across their sites, improving their energy and water efficiency and reducing the environmental impact of their truck fleet,” he said.
Bingo is a major sponsor of Planet Ark’s updated Recycling Near You website, to help millions of Australians find recycling drop off locations.
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.