Biffa hunting for acquisitions after trading lives up to expectations

Biffa said in a trading update on Thursday that it may make more acquisitions this year after first-half trading kept the company on course to meet full year expectations.

The waste management company has completed four acquisitions in 2018 for an aggregate investment of £20m and is continuing to integrate the companies whilst eyeing its “robust” acquisition pipeline.

The FTSE Small Cap group said trading in the first half of the year has been in line with expectations.

“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.”

Annual revenues are expected to come in at £22m after a continued strong performance from the Industrial & Commercial division, the Energy division performed as expected and the Resource Recovery & Treatment division saw evidence of price recovery.

Meanwhile, trading for the Municipal division was “challenging” as margins remain under pressure due to cost inflation and local government spending cuts.

The firm said it will update investors on its plans to invest in Energy from Waste alongside Covanta in its interim results, reporting that the efforts are “progressing well”.

Broker Numis said it believed Biffa was "well placed to capitalise on opportunities across the waste sector", including industrial and commercial and energy from waste facilities amongst others.

Biffa’s shares were down 0.99% at 250.00p at 1000 BST.