Biffa swings to half-year profit

Waste management specialist Biffa said on Thursday that it swung to a half-year profit on the back of higher prices.

Group statutory revenues jumped 23% in the 26 weeks to 30 September, to £825.6m, while adjusted earnings before interest, tax, depreciation and amortisation rose 13% to £103.2m.

Operating profit rose to £49.6m from last year’s £16.7m loss. Pre-tax profits were £38.3m against pre-tax losses of £25.6m a year previously.

The London-listed firm said trading had benefited from "increased selling prices, strong commodity values and an increased contribution from the Viridor business", which it completed in August 2021.

Looking to current half, Richard Pike, chief financial officer, 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."

As at 0915 GMT, shares in Biffa were largely flat at 409p.