In morning trade the BINGO Industries Ltd (ASX: BIN) share price has rocketed higher on the day of its annual general meeting.
At the time of writing the waste management company's shares are 12.5% to $2.85.
Why is the BINGO share price rocketing higher?
Ahead of its annual general meeting in Sydney this morning, BINGO released a presentation which included an operations and market update.
According to the release, the integration of Dial a Dump Industries is well progressed and due to complete by June 2020. Cost synergies of $15 million are to be realised equally over two years.
The company also revealed that the reconfiguration of its NSW network is now largely complete. Its new recycling facility at Eastern Creek has commenced construction and is on track to be operational late in the first half of FY 2021.
This is the first of the facilities to be delivered as part of the Eastern Creek Recycling Ecology Park that underpinned the acquisition of Dial a Dump. Its Mortdale transfer station is also under construction and on track to be operational in the second half.
BINGO also advised that its Victorian operation is performing well and continues to grow. This is being driven by improved recovery rates, further internalisation at its West Melbourne recycling facility, and increased market share in both Building & Demolition and Commercial & Industrial.
Market update.
Management advised that it expects to report underlying EDITDA in the range of $159 million to $164 million in FY 2020. This compares to underlying EBITDA of $106.1 million in FY 2019.
This solid year-on-year growth is expected to be underpinned by a full year contribution from Patons Lane Recycling Centre and Landfill, West Melbourne Recycling Centre, and Dial a Dump Industries. It will also be supported by the aforementioned cost synergies.
CEO Daniel Tartak, said "Our investment in our post-collections network positions us favourably for further growth in FY21 and beyond. The completion of MPC 2 at Eastern Creek, full year contributions from Mortdale and the Patons Lane advanced recycling equipment, licence amendments underway for West Melbourne and Eastern Creek, continued growth in C&I, the expansion of our Victorian business and our entry into the Queensland market, all provide further avenues for growth in the near to medium term. This is further supported by the ongoing structural shifts in the market that are supportive of our business model."
