Bingo Industries Limited (ASX: BIN) - Bingo takes over Dial A Dump, while posting 91.6% growth in profit

  • Aug 21, 2018 AEST
  • Team Kalkine
Bingo Industries Limited (ASX: BIN) - Bingo takes over Dial A Dump, while posting 91.6% growth in profit

Waste management company Bingo Industries Limited (ASX: BIN) today announced the acquisition of Dial A Dump Industries, a fully integrated recycling and waste management business in New South Wales, for $577.5 million. As per the update, acquisition of privately owned Sydney-based rival Dial-A-Dump for $577.5 million is funded via an underwritten Entitlement Offer of $425 and an issue of Bingo shares to vendors at completion of the Acquisition. In an Entitlement Offer released on Tuesday, Bingo offers 1 fully paid ordinary share in Bingo for every 2.48 Bingo ordinary shares, subject to certain conditions. This offer is underwritten other than in respect of the commitments received from CEO Daniel Tartak, founder Tony Tartak and Mark Tartak.

The procurement is believed to strengthen the scale of ASX listed Bingo, thus setting it to clinch a distinctive position in a fiercely-competitive market. Bingo chief executive Daniel Tartak said, "Scale and size is important if you want to compete at a national level.”

Dial A Dump Industries founder Ian Malouf’s will reportedly join the Bingo board with a shareholding in Bingo of up to 12% post completion of the Entitlement Offer and the Acquisition.

Along with the announcement of new acquisition, Bingo has announced the full year results to 30 June 2018 on the same date. The company reported elephant-sized 91.6% growth in their profit for the fiscal year 2018. The statutory profit after tax increased to $38 million from $19.8 million in FY17. FY18 results outperformed against guidance, with strong growth trajectory of 45% in net revenue and 46% in pro forma EBITDA to $93.7 million. Group’s pro forma earnings before interest and tax increased by 42% to $71.8 million reflecting year-on-year growth driven by enhanced operations in New South Wales and Victoria as well as exposure to new markets. Board declared fully franked final dividend of 2 cents per share which is scheduled for payment on 27 September 2018. There has been strong free cash flow generation, with operating free cash flow of $88.9 million. With the target of increasing network capacity to 3.4 million tonnes per annum by FY20, Bingo remains focused to deliver on its growth strategies and achieve expansion programs in FY19. There has been no daily price change in Bingo Industries’ stock which traded at $2.870 on Tuesday, 21 August 2018.

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