Biffa profit rises as division reorganisation pays off
Waste managers Biffa confirmed its full year guidance this morning on the back of a “strong performance” in the first half of the year.
Read more: Biffa profit almost halves on onerous contracts and debt payments
Statutory profit before tax rose to £25.6m, up from £23.7m for the same period last year.
Revenue also grew roughly eight per cent, to £594.6m this year from £549.2m in 2018.
Earnings per share also improved 19 per cent to 11.9p, with an interim divided of 2.47p per share declared.
Why it’s interesting
At the start of the financial year Biffa simplified its business structure into two divisions, collections, which comprises industrial & commercial, municipal, and hazardous waste, and resources and energy, made up of the former resource recovery and energy divisions.
The collections division delivered good organic growth, and was boosted by the acquisition of four small businesses, which between them bring in combined revenues of nearly £10m.
In Resources and Energy, the company reported year on year improvement with revenue up 5.1 per cent due to organic growth.
Read more: Biffa shares jump as it remains on track for full year growth
The recycling portfolio recorded a particularly strong performance due to quick recovery from China’s ban on imports of recycled products, and a boost in polymers from a favourable commercial environment.
What Biffa said
Chief executive Michael Topham said:
“Biffa has delivered a strong performance in the first half of the year. Both of our operating divisions achieved their targets, with notable performances in our I&C and Recycling segments.
“As a result of the sustained progress, and despite the uncertain political and economic environment, our full year expectations remain unchanged.”
Biffa shares rose 1.8 per cent to 254.5p this morning.
Main image credit: Getty