Biffa has revealed that its operating profit has moved back into profit after suffering a loss in the first half of its 2022 financial year.
On announcing its H1 2023 results, the company showed that operating profit had gone from a loss of £16.7 million in the first six months of 2022 to a profit of £49.6 million in the same period for its 2023 financial year.
Biffa noted that this was helped by “increased selling prices, strong commodity values and an increased contribution from the Viridor business” (Biffa bought Viridor’s collections and recycling business in 2021).
The company also said it had completed the acquisition of the trade and assets of £4.7 million revenue waste and collection firm DJB Recycling for £1.9 million. It has also bought the entire share capital of £14.9 million revenue waste collection and recycling business Forege Recycling (Holdings) for £15.9 million upfront and a further £5.5 million payable subject to the performance of the acquired business through to the end of March 2023.
Biffa revealed that the rPET segment of its Polymers business is improving production yields and continuing to gain new customers. The third rHDPE line at its facility in Redcar is on track for commissioning during the next few months.
On the performance of its Recycling business, Biffa noted that: “Statutory revenue in the Recycling business increased 46.4% year on year. This is primarily due to strong performance from the Materials Recycling Facilities, ongoing strong commodity prices and increased Polymer volumes.”
However, Biffa warned that the outlook for the next half of the year looks more challenging. In its trading statement it said: “We anticipate that the second half of the year has the potential to be more challenging as we face into the onset of a likely recession. However, the business is well placed to trade through this environment, and we expect to see opportunities arising that we are well placed to capitalise on.”