CLEANAWAY WASTE MANAGEMENT LIMITED Appendix 4E
Results for announcement to the market for the financial year ended 30 June 2017. ASX Listing Rule 4.3A.
Reporting periodReporting period: 30 June 2017.
Previous corresponding period: 30 June 2016.
Results for announcement to the market2017 $'M | 2016 $'M | UP/DOWN | MOVEMENT | |
Revenue from ordinary activities | 1,454.4 | 1,455.1 | Down | - |
Profit after income tax | 72.5 | 43.1 | Up | 68.2% |
Attributable to: | ||||
Ordinary equity holders of the parent | 72.5 | 44.8 | Up | 61.8% |
Non-controlling interest | - | (1.7) | Up | 100.0% |
Profit after income tax | 72.5 | 43.1 | Up | 68.2% |
DIVIDEND INFORMATION | AMOUNT PER SHARE (CENTS) | TAX RATE FOR FRANKING CREDIT |
Interim 2017 fully franked dividend (paid 6 April 2017) Final 2017 fully franked dividend (to be paid 5 October 2017) | 1.0 1.1 | 30% 30% |
Final dividend dates:
Record date 14 September 2017
Payment date 5 October 2017
A final dividend of 1.1 cents per share has been declared. The Dividend Reinvestment Plan (DRP), will be in operation for the final dividend. The DRP election date is 15 September 2017. Under the DRP, Cleanaway shares will be issued at the average of the daily Volume Weighted Average Price (VWAP) of all shares sold on the ASX over the period from 18 September
to 22 September 2017. No discount will be applied to shares issued under the DRP.
Net Tangible Assets (NTA) per security2017 CENTS | 2016 CENTS | |
NTA per security | 15.0 | 13.5 |
Refer to the 30 June 2017 Consolidated Financial Report, FY17 Full Year Results Media Release and Investor Presentation.
Status of auditThe Consolidated Financial Report for the year ended 30 June 2017, which contains the independent auditor's report, is attached.
D J F Last
Company Secretary 22 August 2017
Cleanaway Waste Management Limited ABN 74 101 155 220
Registered Office:
Level 4, 441 St Kilda Road,
Melbourne VIC 3004 Australia
+61 03 8397 5100
+61 03 8397 5180
cleanaway.com.au
Contents of Financial StatementsDirectors' Report 2
Remuneration Report 11
Auditor's Independence Declaration 27
Consolidated Income Statement 28
Consolidated Statement of Comprehensive Income 29
Consolidated Balance Sheet 30
Consolidated Statement of Changes in Equity 31
Consolidated Statement of Cash Flows 32
Notes to the Consolidated Financial Statements 33
Directors' Declaration 81
Independent Auditor's Report 82
Notes to the Consolidated Financial StatementsInformation about the Group and basis of preparation
Corporate information
Statement of compliance
Basis of preparation
Critical accounting estimates and judgements
Information about our financial performance
Segment reporting
Revenue
Other income
Net finance costs
Income tax
Earnings per share
Information about working capital
Cash and cash equivalents
Trade and other receivables
Inventories
Trade and other payables
Information about our capital structure
Borrowings
Issued capital
Reserves
Dividends and distributions
Capital management
Other information about our financial position
Property, plant and equipment
Intangible assets
Equity accounted investments
Employee entitlements
Provisions
Other liabilities
Information about our group structure
Acquisition of businesses and non-controlling interest
Subsidiaries
Deed of cross guarantee
Parent entity
Information about financial risks and unrecognised items
Derivative financial instruments
Financial risk management
Contingent liabilities
Commitments
Other information
Share-based payments
Auditor's remuneration
Events occurring after the reporting date
Related party transactions
Accounting policies
Significant accounting policies
New standards adopted
New standards and interpretations not yet adopted
1 Cleanaway Waste Management Limited 2017 FINANCIAL REPORT
Directors' Report
The Directors present their Report (including the Remuneration Report) together with the Consolidated Financial Statements of the Group, consisting of Cleanaway Waste Management Limited (the Company) and its controlled entities (Cleanaway
or the Group), for the financial year ended 30 June 2017 and the Independent Auditor's Report thereon.
Directors
The names of Directors of the Company at any time during or since the end of the financial year are set out below. Directors were in office for this entire period unless otherwise stated.
M P Chellew Chairman and Non-Executive Director (appointed as Chairman on 30 September 2016) V Bansal Chief Executive Officer and Managing Director
R M Smith Non-Executive Director
E R Stein Non-Executive Director
T A Sinclair Non-Executive Director
R M Harding Non-Executive Director
P G Etienne Non-Executive Director
M M Hudson Non-Executive Director (retired as Chairman on 30 September 2016 and as Non-Executive Director on 26 October 2016)
The office of Company Secretary is held by D J F Last, LLB (Hons), B.Com, FGIA, GAICD.
Particulars of Directors' qualifications, experience and special responsibilities can be found on the Company's website.
Principal activities
During the financial year the principal activities of Cleanaway were:
Commercial and industrial, municipal and residential collection services for all types of solid waste streams, including general waste, recyclables, construction and demolition waste and medical and washroom services;
Ownership and management of waste transfer stations, resource recovery and recycling facilities, secure product destruction, quarantine treatment operations and landfills;
Sale of recovered paper, cardboard, metals and plastics to the domestic and international marketplace;
Collection, treatment, processing and recycling of liquid and hazardous waste, including industrial waste, grease trap waste, oily waters and used mineral and cooking oils in packaged and bulk forms;
Industrial solutions including industrial cleaning, vacuum tanker loading, site remediation, sludge management, parts washing, concrete remediation, CCTV, corrosion protection and emergency response services;
Refining and recycling of used mineral oils to produce fuel oils and base oils; and Generation and sale of electricity produced utilising landfill gas.
There were no significant changes in the nature of the Group's principal activities that occurred during the year.
Dividends and distributions
The Company declared a fully franked dividend on ordinary shares for the financial year ended 30 June 2017 of 2.1 cents per share, being an interim dividend of 1.0 cents per share and final dividend of 1.1 cents per share. The record date of the final dividend is 14 September 2017 with payment to be made 5 October 2017. The financial effect of the final dividend has not been brought to account in the Financial Statements for the year ended 30 June 2017 and will be recognised in a subsequent Financial Report.
Details of distributions in respect of the financial year are as follows:
RECOGNISED (PAID AMOUNTS) | 2017 $'M | 2016 $'M |
Fully paid ordinary shares Final dividend for 2016: 0.9 cents per share (2015: 0.8 cents per share) Interim dividend for 2017: 1.0 cents per share (2016: 0.8 cents per share) | 14.3 15.9 | 12.6 12.7 |
Total dividends and distribution paid | 30.2 | 25.3 |
Review of results
Financial Results
The Group's statutory profit after income tax for the year ended 30 June 2017 was $72.5 million (2016: $43.1 million) and includes a gain on sale of $22.0 million (after tax $13.5 million) on the sale of two closed landfill sites in Brooklyn, Melbourne. The Group substantially completed its restructuring programme during the year ended 30 June 2017 and incurred additional expenses related to this programme of $14.6 million ($10.3 million after tax) compared with $23.2 million ($16.2 million after tax) incurred on restructuring costs in the prior year.
The Group's underlying profit after income tax (attributable to ordinary equity holders) for the year ended 30 June 2017 of $77.5 million was up by 22.4% on the prior year (2016: $63.3 million). During the year the Group has continued to implement a variety of initiatives targeted at improving operating margins and overall profitability.
Operating review
The Group comprises two operating segments being Solids and Liquids & Industrial Services. Unallocated balances include the Group's share of profits from equity accounted investments and corporate balances. A description of the operating segments and a summary of the associated segment results for the year are set out below:
Solids
Core business | Collections Commercial and industrial (C&I), municipal and residential collection services for all types of solid waste streams, including general waste, recyclables, construction and demolition waste and medical and washroom services as well as resource recovery and recycling facilities, commodities trading and secure product destruction and quarantine treatment operations. Post Collections Ownership and management of waste transfer stations and landfills, including the generation and sale of electricity produced utilising landfill gas. |
Financial metrics | Total revenue for the Solids segment increased by 0.4% to $1,062.5 million. Underlying EBITDA 1 increased by 8.1% to $257.0 million. Underlying EBIT increased by 21.1% to $137.6 million. The Collections business reported both increased revenues and earnings for the period. Revenue increased by 4.0% and underlying EBITDA increased by 7.4% compared to the previous corresponding period. The Post Collections business reported increased earnings for the period, however revenues decreased as a result of the planned closure of the Erskine Park landfill, located in Sydney, during the current period. Revenue decreased 7.3% and underlying EBITDA increased 9.3% compared to the previous corresponding period. |
Performance | Collections Overall volumes and margins have increased compared to the previous corresponding period. Market-facing growth initiatives continue to be implemented across all major solid waste collection categories and contributed to increased revenues during the year. Post Collections The Post Collections business was impacted by the planned closure of the Erskine Park landfill, located in Sydney, NSW during the period. Landfill volumes across most other landfills, were higher than the corresponding period. |
Market review and priorities | Market conditions for the Solids operating segment has remained consistent with the prior year. The market conditions for the 2018 financial year are not expected to vary materially from the 2017 financial year. Solids' main priorities in the 2018 financial year will revolve around continued focus on revenue growth through further improvements in customer service, operational improvements and deriving value from increased resource recovery, through the Group's growing network of resource recovery facilities. |
1 EBITDA represents earnings before interest, income tax, and depreciation, amortisation and impairments.
Cleanaway Waste Management Limited published this content on 23 August 2017 and is solely responsible for the information contained herein.
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