The Bingo Industries Ltd (ASX: BIN) share price is 11.7% higher at $2.82 today after the waste disposal group told investors to expect at least $159 million in 'underlying' EBITDA over fiscal 2020.
In fiscal 2019 Bingo delivered $106.1 million in EBITDA with the expected growth of close to 50% largely on the back its aggressive acquisition strategy.
"Our FY20 result will be underpinned by a full year contribution from Dial a Dump, West Melbourne and Patons Lane, as well as, the NSW pricing increase. Group EBITDA margin continues to expand and is ahead of schedule in returning to our longer-term Group target of 30%," commented CEO Daniel Tartak.
The $578 million Dial-A-Dump acquisition is expected to be completed by June 2020 with around $15 million in cost savings planned for extraction over the next two years.
In fiscal 2019 Bingo delivered 3.7 cents in fully franked dividends on earnings of 3.9 cents per share. Net debt stood at $275.8 million on the back of its recent shopping spree focused on rival businesses.
