EnviroWaste reports 17 percent operating profit increase
Waste management company EnviroWaste Services increased its profit by 17 percent in the year to June, despite "difficult trading conditions".
EnviroWaste, owned by Australia-based private equity firm Ironbridge Capital, said today its earnings before interest and tax rose 17 percent to $25.9 million from the previous year.
Its revenue rose to $133.4m from $110.3m.
"The ability of EnviroWaste to deliver innovative environmental solutions for municipal authorities and large corporates contributed to the company's strong performance during the last financial year," Ironbridge's New Zealand operating partner Kerry McIntosh said.
EnviroWaste won contracts this year from the Dunedin and Wellington city councils to collect refuse and recycling. Auckland City Council also renewed the company's collection contracts for a further two years and extended the existing Manukau City contract to also cover the Franklin District for a further seven years.
It had also been contracted to dispose of contaminated soil extracted from Auckland's Victoria Park Tunnel project.
In the 2010 financial year EnviroWaste completed the installation of two further landfill gas-fired electricity generation engines at Hampton Downs landfill in Waikato.
That took the total to four engines on the site with the capability to supply the power needs of 3200 households.
It also bought out its joint-venture partner, Mighty River Power, in the Greenmount/Rosedale landfill electricity generation business in Auckland.
Staff numbers had increased by 4 percent across the country and the company had significantly improved its health and safety record, Mr McIntosh said.
There was a 82 percent reduction in lost-time injury frequency during the year.
Mr McIntosh said while the difficult economic conditions were persisting longer than anticipated, EnviroWaste was already on track to exceed the financial performance benchmark established in the last financial year.