13th Sep 2018 10:41
LONDON (Alliance News) - Biffa PLC on Thursday said trading in first half of the 2019 financial year has been in line with board's expectations with good growth in Biffa's Industrial & Commercial division, stabilisation in recycled paper markets, and an in line performance by its Energy unit.
However, the waste management company, which retained its annual earnings expectations, said that trading in the Municipal division remained challenging, with margins under pressure due to cost inflation and local government spending cuts.
The company's Industrial & Commercial division continued to deliver good organic and acquisitive revenue growth in the 26 weeks ending September 28, Biffa said, acquiring four businesses for GBP20.0 million in total, with expected annual revenue of GBP22.0 million. The unit's acquisition pipeline remains robust, according to the company.
In the Resource Recovery & Treatment division, Biffa said it is seeing gradual stabilisation in recycled paper markets with some price recovery. It said steps to maximise product quality and mitigate cost headwinds are being delivered as expected.
Biffa, which provides collection, landfill, recycling and special waste services, said it has sufficient financing to deliver on its business and growth strategy. It is slated to release its first half results on November 22.
Biffa shares were trading 1.8% lower at 248.00 pence each on Thursday morning.
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