Vik Bansal leaves Cleanaway as safer company

Cleanaway chief executive Vik Bansal has defended the waste management company’s safety record.

Cleanaway chief executive Vik Bansal. Source: Waste Management Review

Cleanaway chief executive Vik Bansal has defended the waste management company’s safety record as he delivered his last set of financial results at the group.

Mr Bansal, who announced his resignation last month following a series of bullying claims, said the “safety of everyone at Cleanaway has, and always will be, our number one priority”.

“One of the most pleasing improvements that I have overseen in my time at Cleanaway is our safety performance,” Mr Bansal said.

“We’ve reduced the Total Recordable Injury Frequency Rate from 10.8 in FY16 to 4.1 as at the end of 2020, representing more than a 60 per cent improvement.

“There remains more we can do, and I am confident we have the plans in place to ensure our zero target will remain a priority.”

Mr Bansal leaves the company in good financial shape, almost doubling net profit and delivering an increased dividend for the six months to December 31.

Although net revenue remained materially unchanged from the previous corresponding period at $1.07bn, statutory net profit after tax surged 75.3 per cent to $79.4m due to the absence of underlying adjustments this year.

A dividend of 2.25c fully franked was declared, up 12.5 per cent on last year.

Solid waste services revenue grew 2.1 per cent while industrial and waste services revenue declined 8.4 per cent and liquid waste and health services slumped 2.3 per cent, with Mr Bansal blaming the COVID-19 pandemic. He did not provide guidance, again citing COVID-19 uncertainty.

Investors were lukewarm in their response to the company, with shares tumbling 3.4 per cent, compared with the broader sharemarket falling 1.4 per cent.

Mr Bansal said Cleanaway expected to be eligible to participate in the commonwealth government’s Instant Asset Write Off Scheme, which is forecast to reduce tax payments made by the group in FY22 and FY23.

“Cleanaway plans to continue to use its existing franking balance to fully frank dividends declared during 2021,” he said.

“However, because of the benefit from reduced tax payments resulting from the Instant Asset Write Off Scheme, Cleanaway does not expect to pay fully franked dividends during FY22 and FY23.

“Cleanaway will return to the full franking of dividends once it generates sufficient franking credits to do so.”

Despite a turbulent ending, where he last year faced a series of complaints over his management style, Mr Bansal said he was proud of what the company had achieved during his five-year tenure as chief executive.

“Today I am reporting my final set of financial and operational results for Cleanaway, with record outcomes achieved again across all key metrics,” he said.

“I am proud of the performances that we have delivered, and I will miss the Cleanaway management and operations teams across the country that have helped deliver those results.

“The performance that we have achieved in our businesses over the past five years and strategies that we have implemented have delivered significant value.”