LONDON (Alliance News) - Waste management firm Biffa PLC boosted its annual dividend Wednesday amid a "strong" performance from the firm with revenue higher, despite profit struggling amid acquisition and other one-off charges.
For the year ended March, pretax profit narrowed 44% to GBP21.5 million from GBP38.3 million the year prior. This was after revenue rose 0.9% to GBP1.09 billion from GBP1.08 billion the year before.
Profit performance was hurt by a doubling in one-off costs to GBP42.5 million from GBP21.3 million the year prior. These were chiefly due to acquisition costs and charges as well as the impact of changes to landfill provisions.
Underlying pretax profit - excluding one-off costs - widened 7.4% to GBP64.0 million from GBP59.6 million the year before.
"I am pleased to report another year of strong performance by Biffa," Chief Executive Officer Michael Topham said. "We have delivered a good set of financial results for the year while making further strides in the delivery of our strategy."
"Our Industrial & Commercial Division performed particularly well," Topham added. "We've had another very strong year of organic and acquisition growth coupled with a further reduction in customer churn."
Topham also explained I&C had completed seven acquisitions during the year across the UK. He added that the "pipeline of potential targets remains strong" with more acquisitions expected in the new year.
"Our strategic priorities are clear - growing our I&C collections business and investing in recycling and energy from waste assets - and in view of this I have decided to reorganise the group into two divisions - Collections and Resources & Energy," Topham continued. "This will provide a more efficient, focused structure and position us for growth in the areas where we have advantaged positions."
Biffa proposed a 4.90 pence per share final dividend, up 8.2% from 4.53p the year prior. For the full year, the dividend rose 7.5% to 7.20p from 6.70p the year before.
"We are making significant progress in positioning the business for future success in an era where how we manage our waste has never been more important," Topham said. "We have made a solid start to the financial year and look forward with confidence.''
Shares in Biffa were 1.3% higher at 231.00 pence on Wednesday.