Wasteco Group Ltd ---WCO

[whatsup]

.05 atm another of Shauns great rebirths ( MEE ) is this one headed for where ..... ?

[Sideshow Bob]

Sometimes change of auditor can be a red flag, but moving to Big Four?

https://www.nzx.com/announcements/425688

The Board has resolved to appoint Deloitte Limited as the group's new external auditor with effect from the same date for the financial year commencing 1 April 2023.
WasteCo Group Limited (NZX: WCO) advises that it has accepted the resignation of Baker Tilly Staples Rodway as external auditor of the group with immediate effect from 2/02/2024.

The Board would like to thank Baker Tilly for its service and support of the company, particularly during the company's acquisition of the WasteCo business and the transition of that business to the NZX.

[Ricky-bobby]

It’s such a bloody outrages cost, FairPlay for shopping around! I hear Deloitte are one of the better ones as well.

[whatsup]

under .05 atm another ATL !!!!

[Sideshow Bob]

New Captain at the helm....and an update.....

https://www.nzx.com/announcements/425899

WasteCo Group Ltd (WasteCo or WCO) is pleased to announce the appointment of David Peterson as its Chief Executive Officer (CEO), effective February 26, 2024. David brings a wealth of experience across diverse sectors, including engineering, manufacturing, logistics, and project management, to lead WasteCo's growth ambitions in the New Zealand waste sector.

Experienced Leader Joins WasteCo

David holds a Bachelor of Engineering (Civil) with honours from Canterbury University and boasts a successful track record in leading large teams and driving results. He has held senior positions in both listed and unlisted companies in New Zealand and Australia. Notably, he served as General Manager Concrete across Victoria (Australia) for Boral Construction Materials, overseeing 40 sites. Previously, he led General Cable’s operations as Managing Director for Oceania and China and held key roles across the Fletcher Group, including managing the Christchurch earthquake recovery business.

Strong Skills for the Future

WasteCo Chairman Shane Edmond welcomes David, stating, "David's diverse skillset, including his strong analytical and engineering background, and broad and deep operational experience in senior roles perfectly aligns with the exciting opportunities WasteCo has in the New Zealand waste sector. We are confident he will provide the leadership and vision to capitalise on these opportunities and drive sustainable growth for our company." David and his family are excited to return to Christchurch, where they previously lived.

Smooth Transition and Continued Expertise

As previously announced, James Redmayne, co-founder and current CEO, will transition to a new role within the company as General Manager Business Development with effect from 26 February 2024. This transition will enable James to move away from day to day leadership into a strategic executive role while ensuring continuity and maintaining valuable knowledge within WasteCo. James's experience and support will be instrumental as WasteCo transitions to new leadership and executes its growth plans in the coming years. James will also continue in his role as a director on the board of WasteCo.

Positive Trading Update

WasteCo is pleased to report on the successful integration of the businesses it acquired in Southland during 2023. The businesses of Cleanways and Enviro South (trading as Cleanways and specialising in bulk liquid waste and potable water delivery) and Wastech Services were acquired in June 2023, while the business of Bond Contracts Limited (BCL) was acquired in October 2023. BCL provides waste collection services and operates transfer stations in Southland under a multi-year contract with the Invercargill City Council, Southland District Council and Gore District Council. Both acquisitions are trading strongly, have expanded the WasteCo service offering across the group and leverage WasteCo’s capability into new sectors in Southland, meeting customer needs for solution-based approaches. Additionally, recent management changes across the group have led to improved operating performance. While only part way through the second half, the operating EBITDA expectations of $4-$4.5 million (6 months) announced at the half-year mark remain on track.

Looking Ahead

WasteCo remains focused on exploring new growth opportunities and acquisitions in 2024. The company will provide further updates as it progresses on this exciting journey.

About WasteCo

WasteCo is a leading South Island waste solution company, processing and diverting liquid and solid waste from landfill. It provides comprehensive solutions for household, commercial, industrial and local authority customers.
WasteCo is New Zealand’s only diamond certified Toitū Enviromark waste solutions provider and delivers outcomes that ensure its customers are at the leading edge of the sustainability frontier.
The company provides waste and sorting options as well as waste remediation, sweeping and industrial cleaning services – all delivered using leading edge technology and highly trained customer-focussed staff.
The Christchurch-based business was established in 2013.
www.wasteco.co.nz

[Sideshow Bob]

https://www.nzx.com/announcements/428771

WasteCo is pleased to announce the successful issue of convertible notes, raising $3m from a number of wholesale investors. This strategic funding will bolster WasteCo’s operations, specifically aimed at:

- Expanding Recycling Capabilities: Enhancing our facilities to increase recycling throughput and efficiency
- Investing in Technology: Increasing our capability to divert waste from landfill
- Operational Growth: Extending our reach with customer service improvements.

The notes, maturing on 15 October 2025, offer holders the flexibility to redeem for cash or convert to WCO shares at $0.05 each, prior to maturity. With an annual interest rate of 10%, payable quarterly, these notes represent a robust investment in our sustainable growth. CM Partners played a pivotal role in the implementation of this note issue, reflecting confidence in WasteCo’s vision and operational plans.

[whatsup]

ATL ( low ) today, when will she turn ? ( Im sure that there is a song some where here ?

[Sideshow Bob]

https://www.nzx.com/announcements/432080

WasteCo achieves $48 million sales revenue for 12 months to 31 March 2024 during transformative year

WasteCo Group Ltd (NZX:WCO) today announces its audited financial results for the 12 months to 31 March 2024 (FY24).
Highlights for the 12 months to 31 March 2024

• Sales revenue increased 40% to $48 million compared to the same period last year (FY23).
• Achieved operating EBITDA of $4.09 million for the second half of FY24 before non-recurring items, in line with guidance.
• Successfully integrated Cleanways, Bond Contracts and Central Suction Cleaners businesses into our operations. These businesses are performing well.
• The business successfully transitioned to a new financial reporting and accounting platform that adds scale, and greatly improves analysis and visibility across and within divisions.
• A net $6.5 million increase in equity share capital, of which $2.2 million related to shares taken up by the vendor of Cleanways.
• New CEO David Peterson commenced in February 2024. He is focused on improving profitability and organic growth from existing operations and earnings accretive ambitious growth through acquisition of established waste management companies.
• Restructuring initiatives in the first half of the year had a material impact on improving operating performance in the second half.
• Overall loss of $4.14 million. The loss reflected costs largely incurred in the first half, and non-cash accounting treatment of adjustments of $1.5 million in the second half.

A combination of organic business growth and acquisition growth during FY24 means the size and scale of WasteCo’s operations grew revenue by 40% from $34 million in FY23 to $48 million in FY24. This significant increase results in an annualised revenue run rate of $55 million based on the last six months of trading.

The total overall loss for the year was $4.14 million, which was higher than FY23 $1.92 million.

The business recorded a net gain of $762,000 on the acquisition of the Bond Contracts business after deducting a deferred tax liability of $1.52 million.

Notwithstanding the pleasing revenue growth, the underlying financial performance of the existing business operations in the first half was disappointing and has been addressed by the company.

As the economy slowed, external conditions that impacted WasteCo included:

• increased interest rates impacting our customers’ own activities, notably within the construction sector;
• cost of debt; and
• increased labour and fuel costs.
Internal, one-off costs included:
• the three acquisitions completed and restructuring costs; and
• significant investment in assets, systems and organisational structures to position the business for future growth.

During the year, issues within WasteCo’s control that suppressed EBITDA and NPAT performance were addressed aggressively and are reflected in the increased performance of the the business during the second six months of trading. Management has identified additional initiatives that are expected to see further significant gains in the next financial year.

WasteCo achieved an EBITDA of $4.09 million for the second half of the financial year (1 October 2023 to 31 March 2024), in line with the earnings guidance range communicated in the half-year commentary on 29 November 2023. This equates to an annualised run rate of $8.18 million.

WasteCo reported a loss from operations of $2.79 million in FY24. This is the first full-year operational result for the company since the reverse listing transaction in December 2022, and compares with a profit of $1.55 million in FY23. There was a loss before income tax of $5.74 million compared with a loss before income tax of $2.16 million in FY23.

WasteCo continued to increase the level of equity in the company during the year with a combination of new capital raised and $2.2 million in shares taken up by the vendors of Cleanways businesses acquired during FY24. This resulted in the $6.5 million increase in equity.

OUTLOOK

WasteCo’s focus for FY25 is optimising the financial performance of the leveraging initiatives taken by existing businesses during the last year, and acquiring earnings accretive waste management businesses. The company expects to at least maintain the EBITDA achieved in the second half of FY24 while delivering sustainable and innovative solutions to customers and partners.

Overall emphasis will continue to be on people, asset utilisation, competitive pricing structures and further debt reduction. WasteCo also continues to strengthen its reporting and financial processes.

A pricing restructure has already started to flow through to the bottom line and further improvements are expected as this initiative cascades throughout the business. The company is reviewing key supplier arrangements and terms to ensure it is utilising the benefits of considerable growth and increased scale.

There is an immediate opportunity for the company to grow aggressively through a focused and disciplined acquisition strategy. WasteCo is well positioned to be a market leader as a principal aggregator of small and medium-sized enterprises in the waste, refuse and industrial services sector. Consolidation opportunities offer WasteCo significant scalability and synergy value.

New CEO David Peterson is focused on executing a clear and ambitious growth strategy that leverages the company’s strengths and capitalises on emerging opportunities. This will involve operational improvements and efficiencies, acquisitions, upskilling management capability, health and safety improvements, and new technologies.

WasteCo is at the forefront of the waste and sustainability journey of its customers and the communities it serves – working closely with them to divert waste from landfill, and coming up with innovative services to reduce their waste burden economically and sustainably.

WasteCo will likely face further cost pressure as the business continues to grow and incur further increases in compliance costs. However, the diversity of its operations throughout the South Island is its strength, together with the various revenue streams through the different waste management and industrial solutions WasteCo provides its customers. In addition, the company is well positioned to benefit at a corporate level from the leverage to the fixed cost nature of the NZX listing and compliance costs.

The company’s earnings base is largely underpinned by the provision of essential waste services, including a significant proportion secured by long-term contracts, with geographic and sector diversification across councils, healthcare, infrastructure, commercial and industrial customers.

Post balance date, WasteCo consolidated all its asset finance facilities with its banker, Kiwibank. The consolidation is a mix of principal and interest, and interest only facilities, to provide cash flow benefits to WasteCo. WasteCo has undrawn facilities with Kiwibank.

Dividend Policy

The directors have not declared any dividend for the 2024 financial year. In the medium term, the opportunities for growth in the business are expected to be the priority for any surplus funds. The Board will review the dividend policy as revenue and cashflows allow.

[whatsup]

https://www.nzx.com/announcements/432080

WasteCo achieves $48 million sales revenue for 12 months to 31 March 2024 during transformative year

WasteCo Group Ltd (NZX:WCO) today announces its audited financial results for the 12 months to 31 March 2024 (FY24).
Highlights for the 12 months to 31 March 2024

• Sales revenue increased 40% to $48 million compared to the same period last year (FY23).
• Achieved operating EBITDA of $4.09 million for the second half of FY24 before non-recurring items, in line with guidance.
• Successfully integrated Cleanways, Bond Contracts and Central Suction Cleaners businesses into our operations. These businesses are performing well.
• The business successfully transitioned to a new financial reporting and accounting platform that adds scale, and greatly improves analysis and visibility across and within divisions.
• A net $6.5 million increase in equity share capital, of which $2.2 million related to shares taken up by the vendor of Cleanways.
• New CEO David Peterson commenced in February 2024. He is focused on improving profitability and organic growth from existing operations and earnings accretive ambitious growth through acquisition of established waste management companies.
• Restructuring initiatives in the first half of the year had a material impact on improving operating performance in the second half.
• Overall loss of $4.14 million. The loss reflected costs largely incurred in the first half, and non-cash accounting treatment of adjustments of $1.5 million in the second half.

A combination of organic business growth and acquisition growth during FY24 means the size and scale of WasteCo’s operations grew revenue by 40% from $34 million in FY23 to $48 million in FY24. This significant increase results in an annualised revenue run rate of $55 million based on the last six months of trading.

The total overall loss for the year was $4.14 million, which was higher than FY23 $1.92 million.

The business recorded a net gain of $762,000 on the acquisition of the Bond Contracts business after deducting a deferred tax liability of $1.52 million.

Notwithstanding the pleasing revenue growth, the underlying financial performance of the existing business operations in the first half was disappointing and has been addressed by the company.

As the economy slowed, external conditions that impacted WasteCo included:

• increased interest rates impacting our customers’ own activities, notably within the construction sector;
• cost of debt; and
• increased labour and fuel costs.
Internal, one-off costs included:
• the three acquisitions completed and restructuring costs; and
• significant investment in assets, systems and organisational structures to position the business for future growth.

During the year, issues within WasteCo’s control that suppressed EBITDA and NPAT performance were addressed aggressively and are reflected in the increased performance of the the business during the second six months of trading. Management has identified additional initiatives that are expected to see further significant gains in the next financial year.

WasteCo achieved an EBITDA of $4.09 million for the second half of the financial year (1 October 2023 to 31 March 2024), in line with the earnings guidance range communicated in the half-year commentary on 29 November 2023. This equates to an annualised run rate of $8.18 million.

WasteCo reported a loss from operations of $2.79 million in FY24. This is the first full-year operational result for the company since the reverse listing transaction in December 2022, and compares with a profit of $1.55 million in FY23. There was a loss before income tax of $5.74 million compared with a loss before income tax of $2.16 million in FY23.

WasteCo continued to increase the level of equity in the company during the year with a combination of new capital raised and $2.2 million in shares taken up by the vendors of Cleanways businesses acquired during FY24. This resulted in the $6.5 million increase in equity.

OUTLOOK

WasteCo’s focus for FY25 is optimising the financial performance of the leveraging initiatives taken by existing businesses during the last year, and acquiring earnings accretive waste management businesses. The company expects to at least maintain the EBITDA achieved in the second half of FY24 while delivering sustainable and innovative solutions to customers and partners.

Overall emphasis will continue to be on people, asset utilisation, competitive pricing structures and further debt reduction. WasteCo also continues to strengthen its reporting and financial processes.

A pricing restructure has already started to flow through to the bottom line and further improvements are expected as this initiative cascades throughout the business. The company is reviewing key supplier arrangements and terms to ensure it is utilising the benefits of considerable growth and increased scale.

There is an immediate opportunity for the company to grow aggressively through a focused and disciplined acquisition strategy. WasteCo is well positioned to be a market leader as a principal aggregator of small and medium-sized enterprises in the waste, refuse and industrial services sector. Consolidation opportunities offer WasteCo significant scalability and synergy value.

New CEO David Peterson is focused on executing a clear and ambitious growth strategy that leverages the company’s strengths and capitalises on emerging opportunities. This will involve operational improvements and efficiencies, acquisitions, upskilling management capability, health and safety improvements, and new technologies.

WasteCo is at the forefront of the waste and sustainability journey of its customers and the communities it serves – working closely with them to divert waste from landfill, and coming up with innovative services to reduce their waste burden economically and sustainably.

WasteCo will likely face further cost pressure as the business continues to grow and incur further increases in compliance costs. However, the diversity of its operations throughout the South Island is its strength, together with the various revenue streams through the different waste management and industrial solutions WasteCo provides its customers. In addition, the company is well positioned to benefit at a corporate level from the leverage to the fixed cost nature of the NZX listing and compliance costs.

The company’s earnings base is largely underpinned by the provision of essential waste services, including a significant proportion secured by long-term contracts, with geographic and sector diversification across councils, healthcare, infrastructure, commercial and industrial customers.

Post balance date, WasteCo consolidated all its asset finance facilities with its banker, Kiwibank. The consolidation is a mix of principal and interest, and interest only facilities, to provide cash flow benefits to WasteCo. WasteCo has undrawn facilities with Kiwibank.

Dividend Policy

The directors have not declared any dividend for the 2024 financial year. In the medium term, the opportunities for growth in the business are expected to be the priority for any surplus funds. The Board will review the dividend policy as revenue and cashflows allow.

"Directors have not declared a dividend for the 2024 financial year . " REALLY are you sure.

So who will recap the outfit , " the bank " ? !!

[percy]

With a very low equity ratio of just 24.22% and current liabilities nearly twice current assets,I think this company will struggle.
I posted sometime ago I went past their Blenheim Road depot and noted at how much heavy equipment was sitting idle during the day.
Thought to myself the interest costs on fully used equipment would be high.
However this was only a fraction of idle equipment,with the bulk of it at their Haydons Road yard.