WasteCo Group Limited Analysis

Overview

On 5 December 2022 the company completed the acquisition of WasteCo Holdings NZ Limited, and a reverse listing as WasteCo Group Limited (trading as WCO) (WasteCo)

The WasteCo group was formed by Carl Storm and James Redmayne and commenced operations in 2013

WasteCo currently operates a diversified waste, refuse and industrial services business with operations in Christchurch, Ashburton, Timaru, Oamaru, Dunedin and Balclutha, through 6 subsidiaries.

Members of the WasteCo group own and operates a range of business activities associated with:

• Environmental services, which comprise the following operations:
• Waste collection via front load bins, hook bins, skip bins and wheelie bins from both commercial and private customers.
• A large gantry collection operation in Christchurch.
• Road sweeping for Councils and commercial customers. WasteCo operates an extensive sweeping operation in the South Island.
• Waste sorting and diversion. WasteCo operates a 3,600 square metre dedicated sorting facility in Christchurch with a strong focus on diversion from landfill. WasteCo is currently achieving global diversion in excess of 50% of waste away from the landfill.
• A new specialised facility for the collection and treatment of medical and quarantine waste, which has recently been implemented by WasteCo.
• Training services. WasteCo provides internal and external training courses, both to its own staff and to third party organisations.
• Industrial services, which comprise the following operations:
• High pressure water blasting, urgent spill response services, vacuum loading, septic tank cleaning and portaloos. These services are offered on a 24/7/365 basis. WasteCo is one of the largest providers of industrial services in the South Island.
• Port services. WasteCo provides maintenance, cleaning and auxiliary services to several ports and shipping companies in the South Island.

Performance

The following information was extracted from WasteCo Group Limited's Annual Report, released 30 May 2025:

The 2025 financial year saw WasteCo maintain its commitment to sustainable sales growth and operational efficiency.

The Group reported a sales increase of NZ$8.18 million and a rise in operating EBITDA of NZ$1.27 million, reflecting a positive shift in performance. However, despite these improvements, the Group recorded a total comprehensive loss of NZ$9.85 million (2024: NZ$4.14 million loss). This result was primarily influenced by several one-off and non-operational factors, including restructuring costs of NZ$1.76 million, acquisition-related expenses of NZ$605k and ongoing finance costs amounting to NZ$5.1 million.

These exceptional costs reflect a year of strategic transformation as WasteCo continues to reshape its operations for longterm sustainability and growth. The company is in a transition phase, positioning itself for future growth through acquisition, consolidation and efficiency. Notably, the acquisition activity undertaken during the year supports our growth ambitions.

An income tax benefit of NZ$1.14 million partially offset the net loss, recognising the impact of restructuring and investment on taxable earnings.