Biffa Says Price And Cost Headwinds Will Hit Unit's Performance

7th Mar 2018 12:39

LONDON (Alliance News) - Shares in Biffa PLC fell Wednesday after the company warned that cost and price headwinds in the second half of 2018 financial year will hurt performance of the Resource Recovery & Treatment division.

Shares in the waste management company were trading 9.70% lower at 223.50 pence in early afternoon trade.

The company also said that overall group trading in the second half of the year ending March 30 is expected to be in line with management expectations. It added that it has continued to deliver organic and acquisitive revenue growth, with underlying earnings before interest, taxes, deprecation and amortisation growth driven by operational performance.

The Industrial & Commercial division has recorded organic growth supported by pricing discipline, reduced customer churn and acquisition growth, the company said. Trading in the Municipal division remained satisfactory and Energy division performed in line with expectations, it added.

Since announcing its first half results in November, Biffa completed two further acquisitions bringing its total number of acquisitions for the year to date to seven, with combined targeted annual revenue of GBP49.0 million.

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