WasteCo Group announces half year results

Results announcement




Results for announcement to the market
Name of issuer WasteCo Group Limited
Reporting Period 6 months to 30 September 2024
Previous Reporting Period 6 months to 30 September 2023
Currency NZD (New Zealand Dollars)
Amount (000s) Percentage change
Revenue from continuing
operations
$25,029 20%
Total Revenue
$25,029
20%
Net profit/(loss) from
continuing operations
$(5,499)
171%
Total net profit/(loss)
$(5,499)
171%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend at this time.
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0062 $0.0121
As at 31 March 2024
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the market release and unaudited financial statements
for the 6 months ended 30 September 2024 that accompany this
announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Shane Edmond
Contact person for this
announcement
Shane Edmond
Contact phone number 021 995 519
Contact email address shane@wasteco.co.nz
Date of release through MAP

29 November 2024

Unaudited financial statements accompany this announcement.

---

WasteCo Group announces half-year results for the six months ended 30
September 2024
WasteCo Group Limited (NZX: WCO) (WasteCo or the Group) today announces its
results for the six months ended 30 September 2024 (HY25).
Revenue is up 20% to $25.0 million compared with the same period last year
(HY24). This strong revenue growth contributed to operating EBITDA of $1.8 million
for the period before restructuring, acquisition and due diligence costs.
The acquisition of the waste division of Bond Contracts, Cleanways Group and
Central Suction Cleaners Nelson in 2023 all contributed positively to the operating
EBITDA result.
The Group recorded a loss from operations of $1.83m compared to a loss of $2.3m
for the six months ended 30 September 2023. Net loss for the period before tax was
$5.5 million (HY23: loss of $3.1 million). The economic slowdown has impacted
many WasteCo customers including the retail and construction sector and local
authorities.
The result was impacted by one-off costs in relation to organisational restructuring.
The Group undertook an organisational and management review along with other
cost-saving initiatives to improve profitability.
Acquisition of Civic Waste Limited by WasteCo
Acquisition and due diligence costs were incurred in relation to the recent
announcement to the market on 22 November 2024 of WasteCo entering into a
conditional agreement to acquire 100% of the shares on issue of Civic Waste Limited
(“Civic Waste”) for $9 million.
Civic Waste is a leading North Island-based waste management company with
operations in Auckland, Hamilton and Wellington. This acquisition will significantly
boost the Group’s EBITDA and establish a foothold in the North Island for continued
growth and realisation of operational efficiencies.
Convertible Notes Investment by Empire Waste Technology Limited
Empire Waste Technology Limited (“Empire”), an investment vehicle of Simon and
Paula Herbert, has agreed to subscribe to a $15-million convertible note issued by
WasteCo (“Notes”). The Notes issuance will fund the Civic Waste acquisition and
provide working capital for WasteCo to support further acquisitions and otherwise
strengthen its balance sheet.

Share Purchase Plan for Existing Shareholders
In its 22 November 2024 announcement, WasteCo advised it would be offering a
Share Purchase Plan (SPP) to allow existing shareholders to participate in the
company’s growth. The SPP aims to raise up to $5 million in new equity through the
issue of 250million new ordinary shares at $0.02 each. Each shareholder at the
record date will be able to subscribe for up to $50,000.
The issue of the Notes to Empire and the issue of up to 250million shares through
the SPP are subject to shareholder approval. The shareholder meeting is scheduled
for 13 December at 11.00am.
Looking ahead to the second half of the year
WasteCo has had a large focus on improved asset utilisation and the sell down of
assets surplus to use outside its core area of speciality. These changes, coupled
with the forecast contribution from Civic Waste, are expected to provide increased
profitability for the second half of the 2025 financial year (FY25). Civic Waste is
expected to contribute an additional $20 million in revenue in the 12 months
following the acquisition.
On 11 September 2024, WasteCo announced a breach of its quarterly interest cover
ratio and leverage ratio with its primary financier, Kiwibank Limited. WasteCo has
now appropriately modified its covenants with Kiwibank Limited and is in full
compliance with those covenants with effect from 30 September 2024. All other
essential terms of the facilities remain unchanged.
The condensed interim consolidated financial statements for HY25 that accompany
this release are unaudited.
Key Highlights
• Revenue is up 20% to $25.0 million compared with the same period last year
(HY24).
• Significant costs included an organisational restructure and acquisition and due
diligence-related expenses for the recently announced conditional acquisition of
Civic Waste.
• The economic environment remains challenging, however WasteCo is positive
that the recent reduction in the official cash rate will result in increased activity
in the building and construction activity in the short to medium term.
• The senior leadership team is now well established with the recent additions of
Chris Brown as Chief Operating Officer and Luke Bown appointed as Chief of
Sales. Regional Manager reporting lines have been reorganised to the COO.

• During HY25, the Group has secured additional contracted revenue exceeding
$1m, including:
• Mitre 10 contract for the South Island across 9 locations and 7 extra
stores.
• Renewal of Williams Corporation contract.
• Waimakariri District Council septic contract.

Acknowledgement
WasteCo acknowledges the resignation of its entrepreneurial founders, James
Redmayne and Carl Storm, from their executive roles in June and July 2024,
respectively, with David Peterson taking over as Chief Executive Officer from 26
February 2024.
James Redmayne remains as a non-Executive Director and shareholder and Carl
Storm as a shareholder as WasteCo continues its evolution from an innovative waste
services start-up to a listed entity with operations across New Zealand.

---

WasteCo Group Limited


Unaudited Condensed Interim
Consolidated Financial Statements
For the six months ended 30 September 2024

1



Table of Contents


Page
Consolidated Statement of Profit or Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity 3
Consolidated Statement of Financial Position 4
Consolidated Statement of Cash Flows 5
Condensed Notes to the Consolidated Financial Statements 6
Company Directory 15

WasteCo Group Limited
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the six months ended 30 September 2024


* restated. Refer note 2.1

These interim financial statements have not been audited, nor reviewed by the auditor. The accompanying notes form part of
these interim financial statements and should be read in conjunction with them.
2



6 mths ended6 mths ended
30 Sept 202430 Sept 2023
Note(unaudited)(unaudited) *
NZ$000NZ$000
Revenue325,02920,778
Other income7526
Expenses
Employee benefits expenses4.1(10,500)(10,169)
Fleet operating expenses(4,821)(2,422)
Collection, recycling and waste disposal expenses(4,535)(4,448)
Depreciation and amortisation expenses4(3,705)(2,648)
Property expenses(408)(265)
Other expenses(2,964)(3,188)
Loss from operations(1,829)(2,336)
Finance costs4.2(2,606)(1,276)
Acquisition and due diligence costs(172)(254)
Restructure costs(892)-
Gain on bargain purchase-762
Loss before income tax(5,499)(3,104)
Income tax benefit-1,078
Loss for the period
(5,499)(2,026)
Other comprehensive income
Other comprehensive income for the period--
Total comprehensive loss for the period
(5,499)(2,026)
Earnings/(loss) per share
Basic and diluted loss per share (NZ$)6(0.0065)(0.0027)

WasteCo Group Limited
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2024

* restated. Refer note 2.1

These interim financial statements have not been audited, nor reviewed by the auditor. The accompanying notes form part of
these interim financial statements and should be read in conjunction with them.
3



Note
Share
capital
Convertible
notes
reserve
Share based
payments
reserve
Retained
earnings
Total
equity
NZ$000
NZ$000
NZ$000
NZ$000
NZ$000
Balance at 1 April 2023 (audited)
9,871
-
304
(316)
9,859
Loss for the period *
-
-
-
(2,026)
(2,026)
Other comprehensive income net of income tax
-
-
-
-
-
Total comprehensive loss
-
-
-
(2,026)
(2,026)
Transactions with owners in their capacity as owners
Shares issued during the period
9,512
-
-
-
9,512
Less: share issue costs
(511)
-
-
-
(511)
Share options issued
-
-
161
-
161
Share options forfeited
-
-
(90)
-
(90)
Share options exercised
40
-
(15)
-
25
Balance at 30 September 2023 (unaudited) *
18,912
-
360
(2,342)
16,930
Balance at 1 April 2024 (audited)
19,931
343
564
(4,451)
16,387
Loss for the period
-
-
-
(5,499)
(5,499)
Other comprehensive income net of income tax
-
-
-
-
-
Total comprehensive loss
-
-
-
(5,499)
(5,499)
Transactions with owners in their capacity as owners
Share options issued
-
-
88
-
88
Share options forfeited
-
-
(121)
-
(121)
Balance at 30 September 2024 (unaudited)
19,931
343
531
(9,950)
10,855

WasteCo Group Limited
Consolidated Statement of Financial Position
As at 30 September 2024

These interim financial statements have not been audited, nor reviewed by the auditor. The accompanying notes form part of
these interim financial statements and should be read in conjunction with them.
4



These consolidated financial statements were approved by the Board on 29 November 2024.
Signed on behalf of the Board by:



Shane Edmond Roger Gower
Director Director
30 Sep 202431 Mar 2024
Note(unaudited)(audited)
NZ$000NZ$000
ASSETS
Current assets
Cash at bank3681,751
Trade receivables and other current assets6,0057,622
Income tax receivable-26
Inventories104273
Total current assets6,4779,672
Non-current assets
Property, plant and equipment39,20041,279
Right-of-use assets10,10510,545
Intangible assets5,6336,163
Total non-current assets54,93857,987
Total assets61,41567,659
LIABILITIES
Current liabilities
Trade payables and other current liabilities5,8195,859
Lease liabilities1,1881,162
Borrowings10,15710,640
Total current liabilities17,16417,661
Non-current liabilities
Lease liabilities10,09110,422
Borrowings23,30523,189
Total non-current liabilities33,39633,611
Total liabilities50,56051,272
Net assets
10,85516,387
EQUITY
Share capital19,93119,931
Convertible notes reserve343343
Share based payments reserve531564
Retained earnings(9,950)(4,451)
Total equity
10,85516,387

WasteCo Group Limited
Consolidated Statement of Cash Flows
For the six months ended 30 September 2024

These interim financial statements have not been audited, nor reviewed by the auditor. The accompanying notes form part of
these interim financial statements and should be read in conjunction with them.
5


6 mths ended
6 mths ended
30 Sep 2024
30 Sep 2023
Note
(unaudited)
(unaudited)
NZ$000
NZ$000
Cash flows from operating activities
Receipts from customers
26,330
19,704
Payments to suppliers and employees
(23,240)
(20,079)
Income tax refunded
26
126
Net cash from/(used in) operating activities
8
3,116
(249)
Cash flows from investing activities
Payments for property, plant and equipment
(14)
(2,211)
Receipts from the sale of property, plant and equipment
39
-
Payments for acquisition of businesses and related costs
(172)
(5,148)
Payments for intangible assets
(199)
(3)
Net cash used in investing activities
(346)
(7,362)
Cash flows from financing activities
Proceeds from issue of share capital
-
6,836
Proceeds from borrowings
29,713
7,244
Principal repayment of borrowings
(30,060)
(2,944)
Interest paid on borrowings
(1,798)
(918)
Interest paid on convertible notes
(143)
-
Payment of debt settlement and brokerage fees
(545)
-
Principal repayment of lease liabilities
(747)
(616)
Interest paid on lease liabilities
(450)
(358)
Net cash(used in)/from financing activities
(4,030)
9,244
Net (decrease)/increase in cash and cash equivalents
(1,260)
1,633
Cash and cash equivalents at the beginning of the period
(588)
873
Cash and cash equivalents at the end of the period
(1,848)
2,506
Cash and cash equivalents consist of:
Cash at bank
368
2,506
Bank overdraft
(2,216)
-
(1,848)
2,506

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


6
1. General information
WasteCo Group Limited (‘WasteCo’ or ‘the Company’) and its subsidiaries (together ‘the Group’) are
limited liability companies, incorporated under the Companies Act 1993 and domiciled in New Zealand.
WasteCo is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Company is
listed on the NZX Main Board.
The Group provides solutions in the collection of waste and recycling, sweeping services and industrial
cleaning services.
The address of the Company’s registered office is 421 Blenheim Road, Christchurch.
2. Basis of preparation
These unaudited condensed interim consolidated financial statements have been prepared in
accordance with Generally Accepted Accounting Practice in New Zealand (‘NZ GAAP’), with New Zealand
Equivalent to International Accounting Standard 34: Interim Financial Reporting (‘NZ IAS 34’), with
International Accounting Standard 34: Interim Financial Reporting (‘IAS 34’), and with the requirements
on the NZX Listing Rules.
The condensed interim consolidated financial statements do not include all of the notes of the type
normally included in an annual financial report. Accordingly, this report should be read in conjunction
with the consolidated financial statements included in the annual report for the year ended 31 March
2024 which have been prepared in accordance with New Zealand Equivalents to IFRS Accounting
Standards ('NZ IFRS'), IFRS® Accounting Standards, and other applicable New Zealand Financial Reporting
Standards as appropriate for for-profit entities.
The condensed interim consolidated financial statements are presented in New Zealand dollars which is
the Company’s functional and presentation currency, rounded to the nearest thousand dollars.
The condensed interim consolidated financial statements, including the financial results for the 6 months
to 30 September 2024 and 2023, are unaudited. The comparative information as at 31 March 2024 is
audited.
2.1 Restatement of comparative information
The gain on bargain purchase in the comparative period has been restated to reflect the finalised
calculation of the gain as disclosed in the 2024 Annual Report. The gain relates to the acquisition of Bond
Contracts Limited on 30 September 2023. The 2023 interim financial statements recognised a gain on
bargain purchase of $1.7 million but noted that the initial accounting for the acquisition had only been
provisionally determined at the date of approval of those condensed interim consolidated financial
statements. The finalised calculation noted a gain on bargain purchased of $0.8 million as disclosed in
the 2024 Annual Report. This restatement results in a $0.9m increase in the net loss for the six months to
30 September 2023.
Certain other comparative information in these consolidated financial statements has been adjusted in
order to be consistent with the presentation of the current period. These other adjustments are limited
to classification and disclosure and had no significant net impact on total assets, total equity, profit or
cash flow classification.

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


7
2.2 Changes in material accounting policies
There have been no changes in the material accounting policies and methods of computation used in
preparing the condensed interim consolidated financial statements compared to those of the previous
financial year and corresponding interim reporting period. For details of the accounting policies for the
12 months ended 31 March 2024 please refer to the 2024 Annual Report.
2.3 Going concern
The consolidated financial statements have been prepared on a going concern basis, which assumes that
the Group has the intention and ability to continue its operations for the foreseeable future.
The Group incurred an after-tax loss of $5.5 million in the six months to 30 September 2024 (six months
to 30 September 2023: $2.0 million loss). The Group’s net cashflows from operating activities was $3.1
million (six months to 30 September 2023: $0.25 million net cash outflow).
At the reporting date the Group had cash of $0.37 million (31 March 2024: $1.75 million), negative
working capital of $10.7 million (31 March 2024: $8.0 million negative) and net assets of $10.9 million
(31 March 2024: $16.4million).
As at 30 September 2024, the Group had borrowings of $33.5 million (31 March 2024: $33.8 million) of
which $10.2 million were current (31 March 2024: $10.6 million) and $23.3 million were non-current
(31 March 2024: $23.2 million).
In the 3-month period to 30 June 2024, the Group breached its quarterly interest cover ratio and
leverage ratio covenants with Kiwibank. The covenant breaches occurred as a result of weaker quarterly
trading, with revenue down against budget, particularly from some of the Group’s larger customers.
Following discussions, the Group and Kiwibank have appropriately modified the funding facilities’
covenants. The Group was fully compliant with those modified covenants with effect from 30 September
2024. All other essential terms of the facilities remain unchanged.
On 22 November 2024, in conjunction with the acquisition of Civic Waste Limited (Civic Waste) and with
a view to further strengthening the Company’s balance sheet and financial position, WasteCo entered
into a conditional subscription agreement to issue $15 million of convertible notes to Empire Waste
Technology Limited (Empire) (refer notes 12.1 and 12.2). $9 million of the funds received will be used to
fund the acquisition of Civic Waste with the remainder being available to strengthen the Group’s
financial position and support future growth. The subscription agreement with Empire is principally
conditional upon:
• the completion of WasteCo’s acquisition of Civic Waste; and
• WasteCo shareholders approving the issue of the convertible notes, and the potential issue of new
shares in the Company to Empire upon their conversion.
The Board anticipates completion of the Civic Waste acquisition and issue of convertible notes in
December 2024.
The Company has also announced to shareholders that it intends to launch a share purchase plan (SPP)
in conjunction with the Civic Waste acquisition and the issue of convertible notes to Empire. The SPP will
be offered to all existing shareholders. The plan aims to raise up to $5 million in new equity.
The Directors have, at the time of approving the consolidated financial statements, a reasonable
expectation that the Group has adequate resources to continue in operational existence for the
foreseeable future. They have therefore continued to adopt the going concern basis of accounting in
preparing the condensed interim consolidated financial statements.

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


8
3. Revenue

The details above disaggregate the Group's revenue from contracts with customers into primary markets
and major service lines. All revenue is generated in New Zealand.
4. Expenses
The profit or loss for the year includes the following expenses:

4.1 Employee benefit expenses


6 mths ended
6 mths ended
30 Sept 2024
30 Sept 2023
(unaudited)
(unaudited)
NZ$000
NZ$000
Revenue from waste collection, recycling and disposal services
14,929
10,057
Revenue from sweeping services
5,170
5,461
Revenue from industrial cleaning services
4,930
5,260
Total revenue from contracts with customers
25,029
20,778
6 mths ended
6 mths ended
30 Sept 2024
30 Sept 2023
(unaudited)
(unaudited)
NZ$000
NZ$000
Expenses relating to short term leases
(87)
(87)
Gain/(loss) on sale of property, plant and equipment
41
-
Depreciation and amortisation expenses
Depreciation of property, plant and equipment
(2,094)
(1,923)
Depreciation of right of use assets
(882)
(720)
Amortisation of intangible assets
(729)
(5)
(3,705)
(2,648)
6 mths ended6 mths ended
30 Sept 202430 Sept 2023
(unaudited)(unaudited)
NZ$000NZ$000
Salary and wages(10,261)(9,857)
Employer Kiwisaver contributions(282)(256)
Share based payments43(56)
(10,500)(10,169)

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


9
4.2 Finance costs

5. Segment information
The Group provides solutions in the collection of waste and recycling, sweeping services and industrial
cleaning services. All of these collection and disposal services are provided in New Zealand.
The Group has identified its operating segments based on the internal reports reviewed and used by the
Chief Operating Decision Maker (‘CODM’), being the Board of Directors, in assessing the Group’s
performance and in determining the allocation of resources.
The Group has provided only a measure of profit and loss for each reportable segment as the CODM is
not provided with total assets and liabilities for each segment when assessing the Group’s performance
and allocating resources.


6 mths ended
6 mths ended
30 Sept 2024
30 Sept 2023
(unaudited)
(unaudited)
NZ$000
NZ$000
Interest on asset finance borrowings
(1,280)
(903)
Interest on lease liabilities
(450)
(358)
Interest on convertible notes
(245)
-
Interest on overdraft
(86)
-
Debt settlement and brokerage fees
(545)
-
Interest charged by suppliers
-
(15)
(2,606)
(1,276)
Waste
Sweeping
Industrial
Corporate /
Total
collection
services
cleaning
unallocated
& recycling
NZ$000
NZ$000
NZ$000
NZ$000
NZ$000
Total revenue
14,929
5,170
4,930
-
25,029
Operating EBITDA
4,741
2,104
1,116
(6,160)
1,801
Depreciation and amortisation
(632)
(125)
(566)
(2,382)
(3,705)
Other income
18
-
48
1
67
Finance income
-
-
-
8
8
Finance costs
(53)
-
(59)
(2,494)
(2,606)
Acquisition and due diligence costs
-
-
-
(172)
(172)
Restructure costs
-
-
-
(892)
(892)
Net profit/(loss) before taxation
4,074
1,979
539
(12,091)
(5,499)
Income tax benefit
-
-
-
-
-
Net profit/(loss) for the period
4,074
1,979
539
(12,091)
(5,499)
For the 6 months to 30 September 2024

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


10

* restated. Refer note 2.1
5.1 Seasonal and cyclical influences
There are no seasonal or cyclical influences on these interim results.
6. Earnings/(loss) per share

The loss and weighted average number of ordinary shares used in the calculation of earnings per share
are as follows:

The 19.8 million share options on issue at the reporting date were not considered to be dilutive due to
the Group’s net loss for the period (30 September 2023: no share options considered to be dilutive).
The Group has issued $3 million convertible notes. These notes are not considered to be dilutive as their
share price for conversion of $0.05 was higher than the market price of the Company’s shares at the
reporting date, and also due to the Group’s loss (2023: none).
* restated. Refer note 2.1

Waste
Sweeping
Industrial
Corporate /
Total
collection
services
cleaning
unallocated
& recycling
NZ$000
NZ$000
NZ$000
NZ$000
NZ$000
Total revenue
10,057
5,461
5,260
-
20,778
Operating EBITDA
2,525
2,571
1,769
(6,579)
286
Finance income
-
-
-
26
26
Finance costs
-
-
-
(1,276)
(1,276)
Depreciation and amortisation
(996)
(427)
(741)
(484)
(2,648)
Acquisition and due diligence costs
-
-
-
(254)
(254)
Gain on bargain purchase
-
-
-
762
762
Net profit/(loss) before taxation
1,529
2,144
1,028
(7,805)
(3,104)
Income tax benefit
-
-
-
1,078
1,078
Net profit/(loss) for the period
1,529
2,144
1,028
(6,727)
(2,026)
For the 6 months to 30 September 2023 *
6 mths ended
6 mths ended
30 Sept 2024
30 Sept 2023
(unaudited)
(unaudited) *
Basic and diluted earnings/(loss) per share (NZ$)
(0.0065)
(0.0027)
(5,499)(2,026)
848,373756,387
Weighted average number of ordinary shares used in the calculation of
basic and basic loss per share ('000)
Loss from continuing operations (NZ$000)

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


11
7. Borrowings

On 6 May 2024 WasteCo NZ Limited entered into a new funding arrangement with Kiwibank Limited
(‘Kiwibank’) comprising:
• a $17 million Kiwi Asset Finance KiwiPlus facility with principal and interest payable over a term
of 48 months. Interest is charged at a rate calculated as Kiwibank’s cost of funds plus a cost of
funds margin of 2.80% per annum;
• a $15.45 million Kiwi Asset Finance KiwiPlus facility with interest only payable over a term of 24
months. Interest is charged at a rate calculated as Kiwibank’s cost of funds plus a cost of funds
margin of 2.80% per annum; and
• a $3 million Kiwibank Overdraft facility to fund working capital.
The new funding facilities were used to refinance existing Kiwibank and Kiwi Asset Finance facilities, and
all existing non-bank facilities.
The facilities are secured by:
• a first ranking and exclusive General Security Agreement over WasteCo NZ Limited and the
entities within the Group, including WasteCo Group Limited;
• an unlimited cross guarantee between each Group entity; and
• a specific Security Agreement over each individual asset of Wasteco NZ Limited with a value
greater than $50,000.
7.1 Bank covenants
In the 3 month period to 30 June 2024, the Group breached its quarterly interest cover ratio and
leverage ratio covenants with Kiwibank. The covenant breaches occurred as a result of weaker quarterly
trading, with revenue down against budget, particularly from some of the Group’s larger customers.
Following discussions, the Group and Kiwibank have appropriately modified the funding facilities’
covenants. The Group was fully compliant with those modified covenants with effect from 30 September
2024. All other essential terms of the facilities remain unchanged.

30 Sep 2024
31 Mar 2024
(unaudited)
(audited)
NZ$000
NZ$000
Secured borrowings at amortised cost
Bank overdraft
2,216
2,340
Asset finance
28,360
28,177
Unsecured borrowings at amortised cost
Other loans
125
655
Convertible notes
2,761
2,657
Total borrowings
33,462
33,829
Current
10,157
10,640
Non-current
23,305
23,189
33,462
33,829

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


12
8. Reconciliation of profit or loss after taxation with cash flow from operating
activities

* restated. Refer note 2.1
9. Related parties
9.1 Directors
During the period the directors of the Company were Shane Edmond, Carl Storm (who resigned as
director effective 16 August 2024), James Redmayne, Roger Gower and Angus Cooper (who resigned as
director effective 31 October 2024).
9.2 Key management personnel compensation
Key management personnel are the Directors, the Chief Executive Officer and members of the executive
leadership team.

6 mths ended6 mths ended
30 Sep 202430 Sep 2023
(unaudited)(unaudited) *
NZ$000NZ$000
Net (loss)/profit after taxation(5,499)(2,026)
Adjustments for:
Depreciation on property, plant and equipment2,0941,923
Depreciation on right of use assets882720
Amortisation of intangible assets7295
Share based payments(33)56
Interest paid on borrowings1,798918
Interest paid on convertible notes245-
Interest paid on lease liabilities450358
Debt settlement and brokerage fees
545-
Acquisition expenses172-
Gain on sale of fixed assets(38)-
Gain on business acquisition-(762)
Income tax (benefit)/expense-(1,078)
Movements in working capital
(Increase)/decrease in trade receivables and other current
assets1,617(1,342)
(Increase)/decrease in inventory1685
(Increase)/decrease in income tax receivable26126
Increase/(decrease) in trade payables and other current
liabilities(40)1,264
Movement in working capital on business acquisition-(416)
Net cash from/(used in) operating activities
3,116(249)

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


13
Key management personnel compensation is set out below.

9.3 Bastre Properties NZ Limited
Bastre Properties NZ Limited (‘Bastre Properties ‘) owns premises that are leased by the Group. The
initial term of the lease is five years from November 2020 and the Group hold rights of renewal for two
further five-year terms. $81,876 was paid in rent to Bastre Properties in the reporting period ended 30
September 2024 (6 months to 30 September 2023: $81,876). As at 30 September 2024 the Group
recognised $1,059,378 of lease liabilities due to Bastre Properties (31 March 2024: $979,824).
44% of the share capital of Bastre Properties is owned by the Storm Commercial Trust, of which Carl and
Dawn Storm are trustees and 44% by the James & Sam Family Trust, of which James and Samantha
Redmayne are trustees.
9.4 Other transactions with related parties
Carl Storm’s wife, Dawn Storm, received total remuneration of $83,345 as an employee of the Group in
the 6 months to 30 September 2024 (6 months to 30 September 2023: $35,000).
James Redmayne’s wife, Samantha Redmayne, received remuneration of $53,894 as an employee of the
Group in the 6 months to 30 September 2023.
Cada Consulting Limited, a company of which Carl Storm was a director, was paid $68,751 in consulting
fees in the 6 months to 30 September 2024 (6 months to 30 September 2023: nil)
Variable Financial Solutions (NZ) Limited, a company of which James and Samantha Redmayne are
directors, was paid $70,018 in consulting fees in the 6 months to 30 September 2024 (6 months to 30
September 2023: nil)
10. Contingent liabilities
There are no contingent liabilities as at 30 September 2024 (31 March 2024: nil).
11. Commitments
WasteCo is in discussions on a potential lease agreement for an industrial vacuum vehicle. The obligation
amount is still to be confirmed and is estimated at $650,000. (31 March 2024: $570,000).

6 mths ended
6 mths ended
30 Sept 2024
30 Sept 2023
(unaudited)
(unaudited)
NZ$000
NZ$000
Short term benefits - WasteCo directors
536
-
Share based payments - WasteCo directors
10
25
Short-term benefits - key management employees
385
219
Share based payments - key management employees
5
40
936
284

WasteCo Group Limited
Condensed Notes to the Consolidated Financial Statements
For the six months ended 30 September 2024


14
12. Events subsequent to reporting date
12.1 Conditional acquisition of Civic Waste Limited (Civic Waste)
On 22 November 2024 the Company entered into a conditional agreement to acquire Civic Waste. Civic
Waste is a waste management company based in Auckland, with operations and contracts in Auckland,
Hamilton and Wellington.
The purchase price for the transaction is $9 million, together with an earn out component based on the
achievement of certain financial performance milestones during the course of the 12-month period
following the completion of the transaction.
The acquisition is conditional principally upon:
• WasteCo shareholders approving the issue of $15 million of convertible notes to Empire Capital
(refer note 12.2), and the potential issue of new shares in the Company to Empire Capital upon the
conversion of those notes. A special shareholders’ meeting will be held on 13 December 2024 to
seek shareholder approval.
• obtaining the approval to the change of control of Civic Waste from the counterparties to a number
of significant commercial contracts with Civic Waste.
The Board anticipates that the acquisition will be completed in December 2024.
12.2 Conditional agreement to raise $15 million of new convertible notes
On 22 November 2024, in conjunction with the acquisition of Civic Waste and with a view to further
strengthening the Company’s balance sheet and financial position, WasteCo entered into a conditional
subscription agreement to issue $15 million of convertible notes to Empire Waste Technology Limited
(Empire).
The funds raised through the issue of the convertible notes will be applied towards:
• satisfying the payment of the purchase price payable to acquire Civic Waste; and
• providing growth capital for the Company.
The convertible notes will have a five-year term and be convertible at the option of Empire. The
conversion price for the notes will be $0.02 per new WasteCo share issued to Empire. In the event that
all of the convertible notes were ultimately converted, Empire would be issued a total of 750 million new
WasteCo shares.
Interest will be paid on the outstanding notes at a rate of 6% per annum.
The obligations of WasteCo to Empire under the notes are to be secured by a second ranking general
security agreement (GSA) over the present and after acquired property of WasteCo. This GSA will rank
behind the existing GSA registered in favour of the Company’s existing bankers.
The subscription agreement with Empire is principally conditional upon:
• the completion of WasteCo’s acquisition of Civic Waste; and
• WasteCo shareholders approving the issue of the convertible notes, and the potential issue of new
shares in the Company to Empire upon their conversion.
The completion of the subscription for the convertible notes will complete on the same date as the Civic
Waste transaction settles.

WasteCo Group Limited
Company Directory


15
COMPANY NUMBER
3202682
INCORPORATED
24 November 2010
REGISTERED OFFICE
421 Blenheim Road
Upper Riccarton
Christchurch 8041
WEBSITE
www.wasteco.co.nz
SHARE REGISTER
Link Market Services Limited
PO Box 91976
Auckland 1142
Phone: 09 375 5999
AUDITOR
Deloitte Limited
151 Cambridge Terrace
Christchurch 8013
SOLICITORS
Anderson Lloyd
70 Gloucester Street
Christchurch 8013
BANKERS
Kiwibank Limited
Christchurch
BOARD OF DIRECTORS
Shane Edmond
Roger Gower
James Redmayne