13 September 2018
Pre-Close Trading Update
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 26 weeks ending 28 September 2018, scheduled for 22 November 2018.
Trading in the first half of the year has been in line with the Board’s expectations.
The Industrial & Commercial division has continued to deliver good organic and acquisitive revenue growth, together with strong operational delivery and cost control. The division has completed four acquisitions (as detailed in our announcement of 17 August 2018) in the year to date for an aggregate investment of £20.0m, with expected annual revenues of £22.0m. Integration of those acquisitions completed in the prior year is nearing completion. The acquisition pipeline remains robust.
In the Resource Recovery & Treatment division, recycled paper markets have continued to gradually stabilise, with some evidence of price recovery, whilst the steps being taken to ensure that product quality is maximised and cost headwinds are mitigated are being delivered as expected. Trading in the Municipal division remains challenging, with margins under pressure due to cost inflation and local government spending cuts. The Energy division has continued to perform as expected.
The Group’s plans to invest in Energy from Waste alongside Covanta are progressing well, and a more detailed update will be provided with the interim results.
The Group’s balance sheet remains strong, with cash generation and net debt in line with our expectations and with sufficient financing available to deliver the Group’s established strategy for growth.
The Board’s expectations for the remainder of the year are unchanged.
Investors & Analysts
Ian Wakelin, Chief Executive Officer
Michael Topham, Chief Financial Officer
+44 (0) 20 7547 2020
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the Company’s business. Whilst the Company 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 the Company’s control or within the Company’s control where, for example, the Company 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 2018, the Group’s total revenue was £1,076.7 million and its Underlying EBITDA was £150.0 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