By Brendan Rees
A City of Melbourne-owned waste management firm has posted $4.1 million net profit during the past year, according to its annual report.
Citywide, which is chaired by former Victorian Premier John Brumby, attributed its growth predominantly to business acquisitions in the energy and utilities sector during the past year as well as investing in its digital transformation.
The company bought Gordon McKay and Frontline Electrical in November 2020 followed by Ultegra in April 2021, which it said, “together, the acquired assets and processes significantly contribute to the group’s ability to grow revenue”.
Citywide also has a joint venture with Citywide Asphalt Group, which doubled its asphalt plant footprint from one plant co-located in North Melbourne to an additional site in Laverton.
Despite the impacts of COVID-19, its revenue increased by 46 per cent during the past year, with Citywide saying the “investment represents strong recycling potential in conjunction with Citywide’s waste strategy”.
Citywide’s main customer is the City of Melbourne, but it also provides waste, environmental and infrastructure services for other councils, including Brimbank and Boroondarah.
The impacts of COVID-19 led to a revenue reduction of $4.5 million in infrastructure and local government capital works, as well as Working for Victoria scheme projects during the 2020-21 year.
The report stated Citywide had provided a compensation guarantee of up to $7 million to Fulton Hogan Industries Pty Ltd if the asphalt joint venture shut down permanently within seven years since starting operations in 2016 •