The Bingo Industries Ltd (ASX: BIN) share price has collapsed 46% to $1.24 after the waste collection and recycling business shocked the market by announcing it now expects fiscal 2019 "underlying EBITDA" to be broadly in line with fiscal 2018.
Bingo blamed the profit expectation downgrade on less residential apartment developments in NSW and Victoria, an abandoned plan to raise prices, and additional costs around reconfiguring its recycling centres.
As a result, Bingo investors should look away now:
Source: Google Finance
Bingo is also in the middle of trying to complete a giant $577.5 million acquisition of rival rubbish collector Dial A Dump Industries.
The deal was initially knocked back on competition grounds (specifically in Sydney) by the regulator the ACCC, although Bingo has offered to sell an eastern Sydney waste processing plant to try to get the ACCC to change its view on the deal.
As such a lot will be riding on the deal's approval, as Bingo has already raised capital to fund it.
