- Shares in Bingo Industries have reached the highest in 12 months after the company revealed an improved full-year result
- The company expects its earnings to climb as much as 55 per cent to sit between $159 to $164 million
- The company also announced that CFO Anthony Story will retire from the company effective today and will be replaced by current Chief Development Officer Chris Jeffrey
- Bingo shares are currently up 12.7 per cent with shares trading for $2.85 each
Shares in Bingo Industries have reached the highest in 12 months after the company revealed an improved full-year result.
The recycling and waste management company expects its underlying earnings to climb by as much as 55 per cent to a range between $159 to $164 million for the year ending June 30.
This is underpinned by a full-year contribution from Patrons Lane Recycling Centre and Landfill, Dial-a Dump (DADI), and West Melbourne Recycling Centre.
The broader construction market remains strong with the strong pipeline of activity in the commercial and infrastructure sectors supporting the market.
As anticipated by Bingo, blasts in residential construction are expected to continue throughout FY20.
Bingo’s EBITDA (earnings before interest, taxes, depreciation and amortisation) is continuing to expand and is ahead of schedule to return to its long-term group target of 30 per cent within a two-year window.
The company said it expects to benefit from the NSW pricing increase that was applied for in July this year.
However, Bingo is factoring in residential construction headwinds throughout FY20.
Bingo’s purchase of Dial-a Dump, which was cleared for purchase by the ACCC in February, is expected to be completed by June 2020.
Its Mortdale transfer station in Sydney is also under construction and is on track to be operational in the second half of 2020.
Building works, including the installation of solar panels, is substantially complete with outstanding activities including plant and weighbridge installations, and office and amenities buildings.
Bingo also announced today that Chief Financial Officer Anthony Story has voiced his intention to retire and will be stepping down from the role effective today.
However, Anthony will still be supporting the business through a six-month period transition and has agreed to be available across CY20 as required.
“It has been an honour to work at Bingo and be a part of the team’s journey over the past four years, especially during a period of unprecedented change,” Anthony said.
Current Chief Development Office Chris Jeffrey will take on an expanded role of combining the CFO role with his existing responsibilities.
“This change recognises the skills, capabilities and track record of our key executives to deliver value to the Bingo business and ultimately shareholders and is a testament to the depth of the team that has been created,” Managing Director Daniel Tartak said.
Bingo has also been advised that Daniel intends to increase his economic interest in the company from 15.19 per cent to 19.83 per cent.
Following the end of the current blackout period on November 13 2019, Daniel will purchase more than 30 million shares.
“I’m pleased to be increasing my shareholding at such an exciting time for the company,” Daniel said.
“We’re setting up the business for the long-term and the operating and regulatory environment continues to pivot our business model,” he added.
Shares in Bingo are up 12.7 per cent today with shares trading for $2.85 apiece at 12:33 pm AEDT.