Biffa benefits from Hales purchase in first half results

David Arculus, chairman of Severn Trent Plc, said: “The group has delivered a satisfactory overall performance in the first half of 2004/05.”

Robert Walker, group chief executive, of Severn Trent Plc, said:
“Biffa's performance has benefited from the completion of the Hales
integration with profits 12.3% ahead half-year-on-half-year.”

Commenting on the services side of the company and the water activities, Mr Walker added: “I am satisfied with the underlying progress of Services, albeit
the performance has been impacted by difficult market conditions in
the US and the impact of a falling dollar exchange rate.”

Platform

Referring in part to rulings governing water pricing, Mr Walker said: “We have a strong platform on which the new leadership team can
build and take the group further forward. On Thursday we will know
the outcome of the Final Determination and Severn Trent Water is well
advanced in planning the next five years. Biffa is now the largest
integrated waste company in the UK and is poised to take full
advantage of the new waste regulations.”

Biffa's turnover was up 14.4% in the six months to 353.0m (308.7m). PBITA (profit before tax and amortisation) was up 12.3% to 43.8m (39.0m); up 15.9% before incremental pension charges.

A key factor in delivering increased profits at Biffa has been the delivery of cost-savings and efficiencies following the acquisition of Hales and further measures are expected, one analyst remarked.