EnviroWaste EBIT up six percent25-Nov-2011
Envirowaste EBIT up six percent
14 November 2011
Leading waste management company EnviroWaste Services Limited has enjoyed another strong period of growth over the year to 30 June 2011, despite the continued flat economic environment.
EnviroWaste, owned by funds managed or advised by Ironbridge Capital, increased revenue by 8 per cent to $144.0 million from $133.4 million in financial year 2011. Earnings before interest and tax rose 6 per cent to $25.4 million from $23.9 million.
Ironbridge New Zealand Operating Partner Kerry McIntosh says the financial result was underpinned by several large contaminated soil disposal contracts, including from the Victoria Park tunnel development. In addition, EnviroWaste achieved sizeable growth in its commercial market share with several high profile national waste collection accounts won over the period.
Its municipal services business continued to grow strongly as it benefitted from the Dunedin City Council kerbside refuse and recycling collection and Wellington City Council kerbside recycling collection contracts won in 2010. In 2011 the company successfully tendered for the MacKenzie District Council kerbside recycling collection contract, the Porirua City Council landfill management contract, as well as extending its kerbside recycling collection contracts with Auckland Council into the Papakura and Franklin regions.
"EnviroWaste continues to go from strength-to-strength in each of its markets", Mr McIntosh says. "The Company is now recognised as the leading environmental solutions innovator in the industry and is seen by its customers as being capable of delivering real value-for-money "waste solutions".
In the 2011 financial year EnviroWaste actively participated in the earthquake recovery, both immediately responding to customer requirements as well as assisting in the large cleanup operation. Through its liquid treatment facility, Chemwaste, the Company has assisted in hazardous waste removal and general infrastructure restoration.
"As a result of the continued business growth and in particular the commencement of the new municipal contracts, staff numbers have increased by 10 per cent across the country. There has also been ongoing improvement in the health and safety record with a 42 percent reduction in total reportable injuries during the year - which demonstrates the excellent efforts of all staff and management," Mr McIntosh says.
Looking forward, Mr McIntosh says that while the sluggish economic conditions are persisting, EnviroWaste is well on track to exceed last year's earnings and, with a few 'tuck-in' acquisitions pending, should deliver another year of strong business growth in 2012.