Profit hike at Waste Management

In the year to the end of December the company made a profit of $14.3 million, up from $11.7 million in 1999. Revenue rose 25% to $136 million, reflecting the full year impact of the company's acquisition of Waste Care.

However aside from the Waste Care impact the company says it has been affected by a sluggish economy, a drop in construction activity, and increased competition, particularly in Auckland.

WAM says the year was also dominated by the sell down by US-based Waste Management of its 60.4% stake in the company.

It says the successful outcome of the secondary public offering of the shareholding was a significant milestone, even though the price at $3.30 was lower than the share price of $4.15 when the transaction was announced.

"An increase to $4.25 by year end was a good outcome for the new shareholders," the company says.

Meantime investors could expect some news of expansion overseas in the coming year.

WAM says additional expense was incurred in offshore market development, the benefits from which will be seen in the future. It says new and exciting business opportunities are actively being pursued in Australia, Asia and the UK.

A final dividend of 5 cents per share has been declared.

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