EnviroWaste

15-Nov-2010

Strong performance by EnviroWaste in difficult year

15 November 2010

Leading New Zealand waste management company EnviroWaste Services Limited has enjoyed strong operating performance in the year to 30 June 2010 in spite of the difficult trading conditions resulting from the subdued New Zealand economy.

EnviroWaste, owned by funds managed or advised by Ironbridge Capital, increased revenue by 21 per cent to $133.4 million from $110.3 million in financial year 2009. Earnings before interest, tax, depreciation and amortisation rose 11 per cent to $40.0 million from $36.0 million.

Ironbridge New Zealand Operating Partner Kerry McIntosh says the financial result capped a strong performance which included the winning of the Dunedin City Council kerbside refuse and recycling collection and Wellington City Council kerbside recycling collection contracts, two of the largest municipal waste contracts tendered throughout the country in the last 12 months. Auckland City Council also renewed EnviroWaste's collection contracts for a further two years and extended the existing Manukau City contract to also cover the Franklin District for a further seven years.

Other large projects won during the year included the disposal of contaminated soils extracted from the Victoria Park Tunnel project in central Auckland and national waste management accounts for several large New Zealand companies.

"The ability of EnviroWaste to deliver innovative environmental solutions for municipal authorities and large corporates contributed to the company's strong performance during the last financial year," Mr McIntosh says.

In the 2010 financial year EnviroWaste completed, during March, the installation of a further two landfill gas fired electricity generation engines at Hampton Downs landfill in Waikato. This takes the total to four engines on the site with the capability of supplying the power needs of 3200 households. The business also bought out its joint venture partner, Mighty River Power, in the Greenmount/Rosedale landfill electricity generation business in Auckland.

"As a result of the business growth, staff numbers have increased by 4 per cent across the country. There has also been a significant improvement in the health and safety record which is a credit to the efforts of all staff and management," Mr McIntosh says. There was a 82 per cent reduction in lost time injury frequency during the year.

Looking forward, Mr McIntosh says that while the difficult economic conditions are persisting longer than previously anticipated, EnviroWaste is already on track to exceed the financial performance benchmark established in the last financial year.