Biffa plc (‘Biffa’ or ‘the Group’), a leading UK integrated waste management company, today issues a trading update ahead of its announcement of results for the year ending 30 March 2018, scheduled for 13 June 2018.
Trading in the second half of the year, and therefore for the full year, is expected to be in line with the Board’s expectations. Biffa has continued to deliver solid organic and acquisitive revenue growth, and Underlying EBITDA and Underlying Operating Profit growth have been driven by a good operational performance and cost control.
The Industrial & Commercial division has continued to deliver both good organic growth, underpinned by pricing discipline and reduced customer churn, and acquisitive growth. Trading in the Municipal division remains satisfactory, set against unchanged competitive market conditions. The Energy division has continued to perform as expected.
As anticipated, in the Resource Recovery & Treatment division, strong landfill performance has largely mitigated cost and price headwinds arising from the recent changes in Chinese regulations for the import of recycled commodities. In the near term we expect these headwinds to persist, impacting divisional performance. Nevertheless, Biffa remains strongly positioned over the medium and long term due to its investment in recycling operations and focus on high quality products.
Since the Half Year Results in November, Biffa has completed two further acquisitions bringing the total number of acquisitions for the year to date to seven with combined targeted annual revenue of c.£49m. Integration of these acquisitions is progressing as planned. The acquisition pipeline remains robust and further opportunities are being explored.
The Group’s balance sheet remains strong, with cash generation and net debt also in line with our expectations.
Investors & Analysts
Ian Wakelin, Chief Executive Officer
Michael Topham, Chief Financial Officer
+44 (0) 20 7547 2020
This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with Biffa’s business. Whilst Biffa believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Biffa’s control or within Biffa’s control where, for example, Biffa decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.
Biffa is a leading UK-based integrated waste management business. The Group operates across the breadth of the waste management value chain, including the collection, treatment, processing and disposal of waste and recyclable materials, as well as related work in the production and sale of energy derived from waste and the sale of recovered commodities such as paper, glass, metals and plastic. Biffa’s customer base for these services includes local authorities (which includes the collection of waste from households), large corporates and SMEs, and purchasers of end-product commodities and energy. The Group’s services are organised across four operating divisions: Industrial & Commercial; Municipal; Resource Recovery & Treatment (RR&T); and Energy. In FY 2017, the Group’s total revenue was £990.4 million and its Underlying EBITDA was £137.7 million. Biffa was admitted to trading on the London Stock Exchange’s main market for listed securities in October 2016 under the ticker “BIFF”.
For more information visit www.biffa.co.uk