The Bingo Industries Ltd (ASX: BIN) share price has gone up another 5.3% as its recovery continues from the recent binning.
Bingo Industries is a waste management business, it provides residential and commercial waste services, recycling services and bin manufacturing. It started in 2005 when the Tartak family purchased a small skip bin business.
Why The Bingo Share Price Went Up 5%
Bingo released a presentation today.
It gave a summary of its Dial A Dump Industries acquisition which is a fully integrated recycling and waste management services provider it NSW with operations across the waste value chain from collections to recycling, landfill and recycled product sales.
DADI will help compete against multinational operators, comes with a fleet of 55 trucks and enables Bingo to internalise 100% of its non-putrescible waste volumes. Around $15 million of annualised cost synergies are expected over two years with additional revenue synergies.
The waste management business also told invests about its network reconfiguration and positioning for long term growth. It has spent around $140 million to upgrade its network and earnings from this are expected to flow from FY20 onwards.
The network configuration is expected to reduce the capital expenditure by $25 million and will deliver enhanced operational efficiencies.
The West Melbourne upgrade with advanced recycling equipment complete and reopened in late April 2019. The Patons Lane recycling plant is on track to open on 1 July 2019 and the Mortdale location is expected to open in the first half of FY20 with 70% of construction complete.
Bingo said that it remains on track to achieve its revised FY19 EBITDA guidance (click here to learn what EBITDA means) and the DADI business is performing in line with expectations.
However, headwinds remain in the multi-dwelling residential construction sector and is expected to continue throughout FY20.
Are Bingo Shares In The Bargain Bin?
Overall this seemed like a reasonably reassuring update from Bingo, however with the share price up 52% since its negative announcement I think most of the overselling has now been recovered.
I am cautious about buying shares at the moment, I would rather buy one of the reliable and proven ASX shares in the free report below.
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