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Biffa eyes further acquisitions following solid first-half trading performance

The waste management group said its plans to invest in the energy from waste market alongside Covanta were progressing well
Biffa eyes further acquisitions following solid first-half trading performance
Biffa said its balance sheet remains strong, with cash generation and net debt in line with its expectations

Biffa PLC (LON:BIFF) said it was eyeing further acquisitions this year and that its plans to invest in the energy-from-waste market were progressing well.

The waste disposal services provider, which has completed four acquisitions so far in 2018 worth around £20mln, said the integration of the businesses is nearing completion and that its acquisition pipeline was “robust”.

READ: Biffa acquires Midlands waste and recycling firm Weir Waste Services

The company said first-half trading had been in line with its expectations with its energy division continuing to perform as expected. It added that the group’s plans to invest in the energy from waste market alongside Covanta were progressing well.

Biffa's industrial & commercial division continuing to deliver good revenue growth, together with strong operational delivery and cost control. In its resource recovery & treatment division, recycled paper markets have continued to gradually stabilise, with some evidence of price recovery, the company said.

It added that trading at its municipal unit remained challenging, with margins under pressure due to cost inflation and local government spending cuts.

“The group's balance sheet remains strong, with cash generation and net debt in line with our expectations and with sufficient financing available to deliver the group's established strategy for growth,” CEO Ian Wakelin said in a statement.

“The board's expectations for the remainder of the year are unchanged.”

Shares in Biffa were 0.6% down at 251p in early trade.

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Biffa PLC Timeline

Newswire
September 15 2016

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