Waste giant Biffa plc has today (15 March) said that it is “actively pursuing” opportunities to expand through acquisition, following its listing on the London Stock Exchange last year.
And, the company has revealed that it expects to record a ‘strong’ performance for the 2016/17 financial year, in line with half-year results published in November, in a trading update published this morning.
A Biffa collection vehicle in the City of London. (Picture: Neil Turner/Timbismedia)
Biffa, which was listed on the London Stock Exchange during the final quarter of 2017 (see letsrecycle.com story), has said it is making “good progress” in its strategy to deliver revenue growth in a trading update today.
Acquisitions
In November, the company reported an increase in revenue on its commercial and industrial and municipal waste activities, in part driven by its acquisition of Cory Environmental’s municipal collection contracts across the UK for £13.5 million in June (see letsrecycle.com story).
The company also acquired the waste collection and processing business of Wigan-based Blakeley’s Recycling Ltd in September (see letsrecycle.com story).
On the prospect of future acquisitions, Biffa has today said that it is ‘well positioned’ to grow “both organically and through acquisition”, and that it is “actively pursuing” a strong pipeline of acquisition opportunities.
“The markets in which we operate continue to be supportive of our integrated business model,” it added.
Contracts
Since its half year trading update, Biffa has announced contract wins including a £2.4 million agreement with Guidlford and Reigate councils to process and sell dry mixed recyclables (see letsrecycle.com story), and on the commercial side a three-year contract to provide waste management services to the John Lewis Partnership’s shops and supermarkets (see letsrecycle.com story).
In January, Biffa was also awarded a three-year renewal of its contract for the collection of waste and recycling, and beach and street cleansing services on behalf of Arun district council (see letsrecycle.com story).
‘Progress’
On its financial performance, the company said today: “Underlying trading is consistent with our expectations at the time of the Half Year Results in November. The Group continues to make good progress in implementing its strategy to deliver revenue growth and margin expansion.
“Group Underlying EBITDA and Underlying Operating Profit are anticipated to be in line with our expectations for the full year. The Industrial & Commercial division has continued to perform well with ongoing revenue growth supported by cost discipline, including the delivery of acquisition synergies. Further, in the second half of the year the division completed or reached agreement on a number of small infill acquisitions. The Municipal, Resource Recovery & Treatment and Energy divisions have continued to perform as expected.
“Net debt at year end is anticipated to be in line with our expectations.”
Shares in Biffa are trading at close to 183 pence having debuted on the stock exchange at 180p.
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Source: letsrecycle.com Waste Managment
