WasteCo Group Limited Analysis

Overview

On 5 December 2022 the company completed the acquisition of WasteCo Holdings NZ Limited, and a reverse listing as WasteCo Group Limited (trading as WCO) (WasteCo)

The WasteCo group was formed by Carl Storm and James Redmayne and commenced operations in 2013

WasteCo currently operates a diversified waste, refuse and industrial services business with operations in Christchurch, Ashburton, Timaru, Oamaru, Dunedin and Balclutha, through 6 subsidiaries.

Members of the WasteCo group own and operates a range of business activities associated with:

• Environmental services, which comprise the following operations:
• Waste collection via front load bins, hook bins, skip bins and wheelie bins from both commercial and private customers.
• A large gantry collection operation in Christchurch.
• Road sweeping for Councils and commercial customers. WasteCo operates an extensive sweeping operation in the South Island.
• Waste sorting and diversion. WasteCo operates a 3,600 square metre dedicated sorting facility in Christchurch with a strong focus on diversion from landfill. WasteCo is currently achieving global diversion in excess of 50% of waste away from the landfill.
• A new specialised facility for the collection and treatment of medical and quarantine waste, which has recently been implemented by WasteCo.
• Training services. WasteCo provides internal and external training courses, both to its own staff and to third party organisations.
• Industrial services, which comprise the following operations:
• High pressure water blasting, urgent spill response services, vacuum loading, septic tank cleaning and portaloos. These services are offered on a 24/7/365 basis. WasteCo is one of the largest providers of industrial services in the South Island.
• Port services. WasteCo provides maintenance, cleaning and auxiliary services to several ports and shipping companies in the South Island.

Performance

The following information was extracted from WasteCo Group Limited's half year results, released 29 November 2024:

WasteCo Group Limited (NZX: WCO) (WasteCo or the Group) today announces its results for the six months ended 30 September 2024 (HY25).

Revenue is up 20% to $25.0 million compared with the same period last year (HY24). This strong revenue growth contributed to operating EBITDA of $1.8 million for the period before restructuring, acquisition and due diligence costs.

The Group recorded a loss from operations of $1.83m compared to a loss of $2.3m for the six months ended 30 September 2023. Net loss for the period before tax was $5.5 million (HY23: loss of $3.1 million). The economic slowdown has impacted many WasteCo customers including the retail and construction sector and local authorities.

Key Highlights:

• Revenue is up 20% to $25.0 million compared with the same period last year (HY24).
• Significant costs included an organisational restructure and acquisition and due diligence-related expenses for the recently announced conditional acquisition of Civic Waste
• During HY25, the Group has secured additional contracted revenue exceeding $1m, including:
• Mitre 10 contract for the South Island across 9 locations and 7 extra stores.
• Renewal of Williams Corporation contract.
• Waimakariri District Council septic contract.