Waste services firm Biffa says its trading in the first six months of the 2019/20 financial year has “been in line with board’s expectations”, in a six-month trading update issued today.
The announcement comes ahead of its half-year interim results which are due to be released later in the year.
In today’s statement, the company said that, “as expected, the collections division will deliver solid revenue and profit growth”.
Also, according to the statement, Biffa’s Industrial & Commercial (I&C) business “continues to grow both organically and through acquisitions and the Municipal business remains stable”. This is also the case with Biffa’s resources and energy division.
“The Board remains confident in the ongoing trading performance of the group and the outlook for the year is unchanged,” the statement explained.
Today’s update comes around three months after the company published its financial results for the 2018/19 financial year, which showed that its revenue had grown by around 4.4% (see letsrecycle.com story).
June’s financial update also saw Michael Topham – who succeeded Ian Wakelin as chief executive in October 2018 – outline plans to put in place a restructure of the business in a move he says will “best capitalise on the significant opportunities available to us”.
The move will focus Biffa’s four divisions into a two-division structure, coming into effect during the 2020 financial year, comprising Collections and Resource and Recovery.
In today’s update, while the restructure wasn’t specifically mentioned, Biffa explained that it completed two small acquisitions in the current year, for a combined sum of £2.9m.
“The Group has a clear strategy to grow its market presence and continues to have a strong pipeline from which it can pursue synergistic acquisitions to leverage its operational platform,” the statement explained.
It also said that cash generation and net debt are” in line with our expectations” and the company retains “sufficient financing headroom to deliver the group’s established strategy for growth”.
Biffa is also continuing to progress both the build of a new PET plastic bottle recycling facility and negotiations regarding its Energy from Waste projects, according to the statement.