Worth a look

LGI was listed in Oct 22.
It engineers and manages landfill gas infrastructures.
It manages now 25 landfills on the east coast of Australia, as well as 8 power stations based in these landfills.
85 % of their contracts are with local governments (usually quite long term contracts : 10 years+).
50 % of their revenues come from contracts with customers.
The rest comes from environmental certificate income.

The company looks interesting as it has, at the same time, good growth and good margins (EBITDA margin stable at around 40 %).
Cash flow from operation is lower than EBITDA and do not yet cover Capex.
It may be one reason why the company was listed last year (capital increase of 23 m).

The potential of growth looks significant, as the company keeps growing on its existing sites, due in particular to the increase of wastes coming to the sites.
The company also indicates that there are 1,100 operating landfills in Australia. 200 may be suitable for LGI solutions.