Shares in Sydney-based waste management firm BINGO bounced strongly yesterday on a solid trading update.
The shares ended the day up more than 10% at $2.80. That made it the best-performed company in the ASX 200 yesterday.
They were up more than 16% at $2.95 at one stage.
BINGO is forecasting underlying EDITDA in the range of $159 – $164 million for FY20.
That would be a rise of 50% or more on the $106 million of underling EBITDA reported for the year to June 30 by BINGO
“Group EBITDA margin continues to expand and is ahead of schedule to return to our longer-term Group target of 30 percent within the two-year window previously flagged at the FY19 full-year results,” the company said in a filing to the ASX.
Bingo’s CEO, Daniel Tartak, said: “We’re very confident that we have the right strategy and the right team in place to capitalise on a compelling growth outlook for the company”.
Mr. Tartak revealed that he believes in BINGO’s prospects so much that he intends to increase his economic interest in the company from 15.19% to 19.83%
“I’m pleased to be increasing my shareholding at such an exciting time for the Company,” he told the AGM yesterday.
“We’re setting up the business for the long-term and the operating and regulatory environment continues to pivot to our business model.”
“BINGO expects to achieve solid year-on-year growth in FY20 underpinned by a full-year contribution from Patons Lane Recycling Centre and Landfill, West Melbourne Recycling Centre and DADI, together with the associated cost synergies referred to above,” directors said in yesterday’s update.
“The broader construction market remains strong, with the robust pipeline of activity in the commercial and infrastructure sectors underpinning the market. As anticipated, headwinds in residential construction are expected to continue throughout FY20. We also expect opportunities for ongoing growth in our C&I business.”
Meanwhile, the company’s CFO, Mr. Anthony Story, announced he’ll be retiring after a six-month transition period.
