Bingo Industries shares have surged to their highest in more than 12 months after the waste manager tipped a vastly improved underlying full-year result on its recycling, landfill and Dial-a-Dump acquisitions.
Bingo shares climbed by 15.02 per cent to $2.93 in the first 15 minutes of trade on Wednesday after the company flagged underlying earnings were expected to rise by as much as 55 per cent to a range of $159 million to $164 million in the year to June 30.
The company’s buoyant outlook was underpinned by what will be a full-year contribution from its Patons Lane Recycling Centre and Landfill, West Melbourne Recycling Centre, and Dial-a-Dump – which it bought for $578 million this year.
Bingo shares have now climbed 56.33 per cent in 2019 and are at their highest mark since October 2018.
The company said expects to benefit from the NSW pricing increase implemented in July, but is also factoring in residential construction headwinds throughout FY20.
“The broader construction market remains strong, with the robust pipeline of activity in the commercial and infrastructure sectors underpinning the market,” managing director Daniel Tartak said ahead of Wednesday’s annual general meeting in Sydney.
Bingo’s integration of Dial-a-Dump – which the ACCC cleared for purchase in February – is expected to be completed by June 2020, while its Mortdale transfer station in Sydney is also under construction and also on track to be operational in the second half
The construction of a new recycling facility at Eastern Creek in Sydney has commenced construction and is on track to be operational in the first half of FY21 – the first of the facilities to be delivered as part of the Eastern Creek Recycling Ecology Park that underpinned Bingo’s purchase of Dial-a-Dump.
In other pre-AGM announcements, Bingo said its chief financial officer Anthony Story will retire effective immediately to be replaced by chief development officer Chris Jeffrey, who takes on an expanded role.
The company said Mr Tartak – the company’s largest shareholder – had signalled his intention to increase his stake from 15.19 per cent to 19.83 per cent by purchasing 20 million shares owned by his mother and father.
Originally published as Bingo shares jump 15% on strong outlook