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Biffa plc (BIFF)

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Tuesday 12 March, 2019

Biffa plc

Biffa Acquires Specialist Waste Recycling Ltd

RNS Number : 5662S
Biffa plc
12 March 2019
 

 

 

This announcement contains inside information

 

Biffa plc

 

 12 March 2019

 

 

BIFFA ACQUIRES SPECIALIST WASTE RECYCLING LIMITED



Biffa plc ('Biffa', 'the Group' or 'the Company'), the UK's leading integrated waste management company, announces that it has today acquired Specialist Waste Recycling Limited ('SWRNewstar'), from a consortium of investors including Angus MacDonald OBE.

SWRNewstar has been acquired for a consideration net of cash acquired of c£25.8 million, funded from Biffa's existing cash and debt facilities.

For the year ended 31 December 2018, SWRNewstar generated revenues of £40.1 million, an Underlying EBITDA[i] run rate of £3.5 million, and Underlying Operating Profit[ii] of £3.4 million and had gross assets of £15.7 million[iii]. The business also brings with it a workforce of c.90 people.

SWRNewstar's business model is to provide waste and recycling solutions to its customers on a national basis, with the physical delivery of the service provided by a network of sub-contractors. Biffa is an established sub-contractor to SWRNewstar, servicing around 11% of SWRNewstar's customers' requirements. The acquisition provides Biffa with the opportunity to increase the proportion of work serviced by its' collection and processing network, as well as expanding routes to market.

Michael Topham, Chief Executive Officer of Biffa, said:

"The acquisition of SWRNewstar represents a compelling opportunity for Biffa and provides further evidence of our ability to identify and execute cash flow enhancing and earnings accretive acquisitions. Bringing together SWRNewstar with Biffa's leading Industrial & Commercial business will strengthen our offering while enabling us to profitably leverage our national network. We welcome the staff and customers of SWRNewstar to Biffa."

 

ENQUIRIES:

 

Michael Topham, Chief Executive Officer

Richard Pike, Chief Financial Officer

[email protected]

 

Instinctif Partners           +44 (0) 20 7457 2020

Mark Garraway              +44 (0) 7771 860 938

James Gray                   +44 (0) 7583 936 031

[email protected]

 

 

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements and unaudited financial information that are subject to the usual risk factors and uncertainties associated with the Company's business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements or unaudited financial information.

Inside information

The information contained in this announcement is inside information. If you have any queries on this, then please contact Rachael Hambrook, Company Secretary (responsible for arranging the release of this announcement) at Biffa plc Coronation Road, Cressex, High Wycombe, Bucks HP12 3TZ on +44 (0) 1494 521221

About Biffa

 

Biffa is the leading UK-based integrated waste management business. The Group operates across the breadth of the waste management value chain, including the collection, treatment, processing and disposal of waste and recyclable materials, as well as related work in the production and sale of energy derived from waste and the sale of recovered commodities such as paper, glass, metals and plastic. Biffa's customer base for these services includes local authorities (which includes the collection of waste from households), large corporates and SMEs, and purchasers of end-product commodities and energy. The Group's services are organised across four operating divisions: Industrial & Commercial; Municipal; Resource Recovery & Treatment (RR&T); and Energy. In FY 2018, the Group's total revenue was £1,076.7 million and its Underlying EBITDA was £150.0 million. Biffa was admitted to trading on the London Stock Exchange's main market for listed securities in October 2016 under the ticker "BIFF".

 

For more information visit www.biffa.co.uk 

 

 

 

 



[i] Underlying EBITDA is Underlying Operating Profit minus depreciation and amortisation.

[ii] Underlying Operating Profit is operating profit before exceptional items and amortisation of acquisition intangibles.

[iii] The financial results of SWRNewstar for the year to 31 December 2018 are unaudited but have been subjected to due diligence. Statutory EBITDA of £3.1 million and Statutory operating profit of £2.1 million are expected the year to 31 December 2018. The latest available audited financial statements of the SWRNewstar business are those of Specialist Waste Recycling Limited in respect of the period to 31 December 2017 and show revenues of £31.2 million, EBITDA of £2.1 million, Operating Profit of £1.8m and gross assets of £13.6 million. These results include 1 month of trading for New Star Environmental Limited, which was acquired on 1 December 2017.

 

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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