Wasteco Group Ltd ---WCO

[silverblizzard888]

Raising $3m for acquisition in invercargil company BCL's waste collection business as reference above by Southern Lad its a purchase from Bond Contract ltd

Total acquisition price is $8.775m. Rasing at 6.5 cents, $2.5m to shareholders and $0.5m to private.


About the business:

"The business being acquired provides waste collection services and operates transfer stations in Southland under a contract with the Invercargill City Council, Southland District Council and Gore District Council (together referred to as the 'WasteNet' Councils). This contract runs until 30 June 2027. WasteCo intends to proactively engage with the WasteNet Councils and participate in subsequent negotiations and tender opportunities for the WasteNet Councils contract beyond 2027."

[winner69]

Raising $3m for acquisition in invercargil company as reference above by Southern Lad its a purchase from Bond Contract ltd

Rasing at 6.5 cents, $2.5m to shareholders and $0.5m to private.

Total acquisition price is $8.775m

About the business:

"The business being acquired provides waste collection services and operates transfer stations in Southland under a contract with the Invercargill City Council, Southland District Council and Gore District Council (together referred to as the 'WasteNet' Councils). This contract runs until 30 June 2027. WasteCo intends to proactively engage with the WasteNet Councils and participate in subsequent negotiations and tender opportunities for the WasteNet Councils contract beyond 2027."

It’s a $8.7m acquisition, a $3m cap raise so balance coming from debt

Did raise $4m a few months ago for the Cleanway acquisition

Next Balance Sheet will look interesting

Sorry …was in reply to your abbreviated post which you added to with these details

[silverblizzard888]

It’s a $8.7m acquisition, a $3m cap raise so balance coming from debt

Did raise $4m a few months ago for the Cleanway acquisition

Sorry …was in reply to your abbreviated post which you added to with these details

Fair enough I was browsing the news and saw the article and didn't see anyone post anything on the NZX releases so thought it was a snippet of new information, didn't pay attention that they had already released NZX anouncements on the full details before posting, amateur's mistake on my behalf.

[Rawz]

So it’s trading about 1x proforma revenue and 10x proforma EBITDA. Nothing to get excited about

Shareholders funding all the growth as well.

We saw with DGL the margin pressure they came under after trying to merge all the acquisitions into the mothership. It’s not an easy task. You got to realize most of these businesses they are buying are owner operator lead and sometimes don’t work in a corporate environment with firm structure and policies. The owner operators are usually the main reason the business works.

I like the industry but won’t be investing until they can prove these roll ups are contributing to the bottom line. This will likely be a few FY audited accounts away..

[percy]

So it’s trading about 1x proforma revenue and 10x proforma EBITDA. Nothing to get excited about

Shareholders funding all the growth as well.

We saw with DGL the margin pressure they came under after trying to merge all the acquisitions into the mothership. It’s not an easy task. You got to realize most of these businesses they are buying are owner operator lead and sometimes don’t work in a corporate environment with firm structure and policies. The owner operators are usually the main reason the business works.

I like the industry but won’t be investing until they can prove these roll ups are contributing to the bottom line. This will likely be a few FY audited accounts away..

Very much how I see this company too.
While revenue is growing it will come down to earnings per share growth.

[whatsup]

With todays trading @ .071ish and the SPP @ .065 that imo is a vote of confidence or am I missing something ?

[Rawz]

With todays trading @ .071ish and the SPP @ .065 that imo is a vote of confidence or am I missing something ?

less than $2k traded

[whatsup]

So who is partaking of the SPP ?

[winner69]

With todays trading @ .071ish and the SPP @ .065 that imo is a vote of confidence or am I missing something ?

Wondered at the time whether this ‘vote of confidence’ was just a ploy to make the SPP a thing not to be missed …just speculation on my part of course

Anyway just over $1.2m was raised in SPP from shareholders and underwriters taking up another $1.2m worth of shares.

Let’s see what happens next

[silverblizzard888]

The acquisition of BCL brings revenue count pass $50m, adding $15.9m revenue and $4.4m EBITDA

Net debt will be $26.9m

Question is do these guys have a plan on how they're going to reduce debt or just acquiring till its a problem?