Biffa trading update shows evidence of price recovery

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Biffa truck in London
Biffa truck

Biffa has issued its trading update ahead of its half-yearly result announcement which shows that recycled paper markets have gradually stabilised, with evidence of price recovery. 

This update is ahead of the results for the 26 weeks ending 28 September 2018 and scheduled for 22 November 2018. 

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Trading in the first half of the year is in line with the board’s expectations, said Biffa. 

This year’s REB Market Intelligence Summit is taking place on 2 October and will look at end destinations for materials. Find out more here 

The company said that its Resource Recovery & Treatment division saw recycled paper markets slowly stabilise, and even saw some price recovery for materials.  

Biffa is also taking steps to ensure that product quality is maximised, and cost headwinds are mitigated and being delivered as expected.  

The firm said that its Industrial & Commercial division has continued to provide good organic and acquisitive revenue growth, strong operations delivery and cost control.  

This division has also secured four acquisitions in the year so far for an aggregate investment of £20.2m, and an expected annual revenue of £22m. 

Trading in the Municipal division remains challenging said Biffa, with margins under pressure because of price inflation and local government cuts. 

The company’s plans to invest in Energy from Waste alongside Covanta are developing well, but a more detailed update will be provided with the full results.  

The board’s expectations for the remainder of the year are unchanged.

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