4th Mar 2020 09:10
(Alliance News) - Waste management firm Biffa PLC said on Wednesday that performance in its current financial year has met expectations, though it has warned of a delay in a new project.
High Wycombe-based Biffa's performance in the 52 weeks to March 27 is set to be in line with board expectations, Biffa said, with progress made on underlying performance metrics and earnings per share. Earnings per share in its prior financial year was 7.2 pence.
In mid-February, Biffa said it had reached financial close on a new energy-from-waste facility in Newhurst, Leicestershire. The project will cost GBP285 million to GBP295 million, with Biffa paying GBP45 million of that over the next three years.
However, on Wednesday, Biffa said the development process was taking longer than expected, and financial completion has now been delayed. It had originally hoped to start operations at the Newhurst plant in 2023.
Returning to trading, the Collections division continued to grow, Biffa said. Within that, Industrial & Commercial did well, as did Specialist Services.
In the Resources & Energy division, Biffa was boosted by a strong performance from Recycling due to higher demand for recycled plastics despite softness in the paper market, it said.
Biffa made four "small" acquisitions during the year, it continued, and has a "strong" pipeline of new opportunities.
"Cash generation and net debt are in line with expectations, underpinning Biffa's ability to deliver the group's established strategy for growth, whilst also returning cash to shareholders through its progressive dividend," said the company.
"Biffa continues to closely monitor the potential impact of COVID-19 on its business and supply chains. There has not been any meaningful impact on the group to date."
"The board remains confident in the ongoing strategy and trading performance of the group," Biffa added.
Biffa shares were flat on Wednesday morning in London at a price of 285.99 pence each.
By George Collard; [email protected]
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