‘BINGO Industries Limited
Australia’s leading waste management and recycling and company, BINGO Industries Limited (ASX: BIN) operates across Victoria and New South Wales. The company functions across commercial & industrial (C&I) and building & demolition (B&D) waste streams with competencies across processing and recovery, waste collection and disposal and bin manufacturing.
FY19 Full Year Results
BINGO has recently published its full year results for the year ended 30 June 2019. FY19 was a transitional year for the company, supported by the acquisition of DADI and most of the completion of its development program.
On an operational front, BINGO completed the acquisition of Dial-A-Dump Industries in March this year which resulted in a significant expansion of its post-collections operations footprint comprising landfill disposal in New South Wales. The company informed that the contribution from DADI to BINGO since its acquisition was in-line with expectations.
The company made substantial progress in its development program during the year, which was announced soon after its IPO in 2017. Under the development program, BINGO’s first recycling centre was opened in April 2019 in West Melbourne and Victoria. The company also officially opened Patons Lane Recycling facility in New South Wales subsequent to the period end, in July 2019.
The network capacity target exceeded in FY19 to 3.4 million tonnes per annum, following the completion of DADI acquisition and announced development program.
On the financial front, BINGO delivered healthy FY19 results with a growth in its net revenue by 32.4 per cent to $402.2 million. The company’s underlying EBITDA improved 13.2 per cent to $106.1 million during the period, in-line with the guidance. The underlying EBITDA included $13.6 million from DADI and $92.5 million of EBITDA from the BINGO business.
BINGO’s net revenue and underlying EBITDA improved while its Statutory NPAT declined by 41.4 per cent on pcp to $38.0 million. The company reported solid growth in its operating free cash flow of 31 per cent to $116.5 million with 109.8 per cent cash conversion for the 12 months ending 30th June 2019.
BINGO’s Collections revenue and Post-Collections revenue also increased by 20.7 per cent and 41.3 per cent to $213.5 million $243.8 million, respectively in FY19. Collections Underlying EBITDA was 7.8 per cent down on pcp at $38.4 million while Post-Collections Underlying EBITDA was 37.9 per cent up on pcp to $67.2 million.
Dividend Announcement
Along with FY19 full year results, BINGO also declared a final fully franked dividend amounting to 2.0 cents per share for the half year ending 30th June 2019. With this, the company’s total dividend for the year now totalled 3.72 cents per share, including the half year dividend of 1.72 cents per share paid in March 2019. The dividend is payable on Monday, 30th September 2019. FY20 Outlook
BINGO is likely to deliver cost synergies of $15m over 2 years from FY20, backed by its transformational acquisition of DADI. The company’s network reconfiguration plan in NSW is expected to return $80 million from the capital recycling of non-core assets and divestment of the Banksmeadow facility in FY20. Banksmeadow divestment is expected in September 2019, taking out annualised earnings contribution of approximately $10 million in EBITDA. BINGO believes that its price rise, which was initiated from 1 July 2019 is likely to deliver margin expansion in Collections in the next financial year.
Stock Performance
As at 2:07 PM AEST on 22nd August 2019, BIN is trading lower at AUD 2.205 on the ASX with a fall of 7.74 per cent relative to the last closed price. With ~7.2 million shares of the company in rotation, its market cap currently stands at AUD 1.58 billion. The stock has delivered substantial returns in the past with 30.96 per cent return on a YTD basis, and 77.70 per cent during the last six months.”
