EnviroWaste earnings up in flat conditions

EnviroWaste Services. Photo / APN

Unlisted New Zealand waste management company EnviroWaste Services says it has increased its earnings before interest and tax by 6.3 per cent to $24.4 million in the year to June 30, despite flat economic conditions.

But interest costs had taken it to a bottom line loss of $11.7 million for the year, up from a loss of $10.5 million in the previous year.

EnviroWaste, which is owned by funds managed or advised by Australian private equity company Ironbridge Capital, increased its revenue by 8 per cent to $144.0 million from $133.4 million.

Ironbridge New Zealand operating partner Kerry McIntosh said Ironbridge had no immediate plans to sell the business, which is the second biggest player in the New Zealand waste management industry after Australia's Transpacific.

He said the result was underpinned by several large contaminated soil disposal contracts, including the Victoria Park tunnel development, which involved EnviroWaste removing 300,000 to 400,000 tonnes of spoil from the old Auckland gas works site.

McIntosh said the company was happy to remain in control of EnviroWaste for the time being.

He said 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 benefited from the Dunedin City Council kerbside refuse and recycling collection and Wellington City Council kerbside recycling collection contracts won last year.

The company won the MacKenzie District Council kerbside recycling collection contract and 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.

In the 2011 financial year EnviroWaste assisted in the large clean-up operation after the Canterbury quakes.

Through its liquid treatment facility, Chemwaste, it also helped in hazardous waste removal and general infrastructure restoration in Christchurch.

McIntosh said EnviroWaste was on track to exceed last year's earnings, despite persistently sluggish economic conditions.