AGM ASX announcement today refer uploaded file below
Ahead of its AGM, Cleanaway has cautioned shareholders that first half earnings could be softer for FY20. The company cited lower economic activity, soft commodity prices, and lower volumes in Queensland due to a new landfill levy as weighing factors.
The waste management group expects earnings in the first half of FY20 to be in line with the first half of FY19. Despite the soft forecast, Cleanaway expects earnings in the second half of FY20 to be stronger than the first half of FY20 and the corresponding second half of FY19.
Cleanaway chief executive Vik Bansal reassured shareholders that all 3 of the company’s operating segments (solid waste, industrial waste and health services) in addition to pricing and cost reductions would result in stronger full-year earnings for FY20.
Mr Bansal also emphasised the potential in Cleanaway’s recent acquisition of SKM Recycling assets, which is the largest processor of recyclable household material in Victoria. In his address to shareholders, Mr Bansal stated that “their [SKM’s] economic model was centred around being a manufacturer, rather than a waste manager.” According to Mr Bansal, “by purchasing their [SKM’s] assets, Cleanaway is now working with councils to provide them with a correctly priced solution to their kerbside co-mingled waste.”
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