(Alliance News) - Biffa PLC shares rose on Tuesday, as it shared strong growth in its annual results, and said it is well-positioned to benefit from policy developments in the sector.
For the year ended March 25, High Wycombe, Buckinghamshire-based waste management firm said revenue jumped 39% to GBP1.44 billion from GBP1.04 billion in financial 2021. Revenue for the financial year ended March 2020 came in at GBP1.16 billion.
This was "driven by organic recovery back to pre-pandemic levels, together with the contributions of Simply Waste, Company Shop Group, Viridor and the Biffa Polymers investments", Biffa said.
Organic growth contributed 22%, and acquisition growth added 17%.
Biffa narrowed its pretax loss substantially to GBP28.6 million from GBP52.8 million the year before.
Shares in Biffa were up 9.4% to 394.59 pence each in London on Tuesday morning.
On an adjusted basis, operating profit more than doubled to a record high of GB96.6 million from GBP44.2 million. The figure adjusts for a GBP104 million hit, an increase from GBP82 million the year before.
The GBP104 million adjustment was comprised of GBP25 million associated with goodwill impairment from the Company Shop acquisition, GBP21 million from the negative outcome from the EVP dispute, and GBP17 million from the HMRC landfill tax enquiry.
The firm reinstated dividends at 6.89p per share, a substantial increase from the last annual payout of 2.47p in financial 2020.
"Not only have we demonstrated the resilience of our business model, resulting in record adjusted operating profits and the reinstatement of the dividend, but we continued to invest in the infrastructure and services that are essential to the delivery of a circular economy. As we look forward, whilst being mindful of the near term challenges the UK economy is facing, we are increasingly well positioned to play a key role in the transition that our sector is embarking upon, supported by an ambitious policy agenda," said Chief Executive Officer Michael Topham.
Separately, Biffa also announced it has extended the 'put up or shut up' deadline for Energy Capital Partners LLC. ECP now has until August 30 to announce a firm intention to make an offer for the company.
This follows "unsolicited and indicative" proposals from the private equity firm back in June, which valued Biffa at GBP1.36 billion.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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