StockMarketWire.com - Waste management company Biffa saw underlying profits rise as its industrial & commercial division delivered a 'very strong' year of organic and acquisition growth coupled with a further reduction in customer churn.

For the 52 weeks to ended 29 March, underlying pre-tax profits rose 7.4% to £64m and revenue increased 4.4% to £1.03bn.

Underlying organic revenue growth in its industrial & commercial (I&C) division rose 3.2%, underpinned by new customer wins including Busy Bees, National Trust and Kingspan Group.

But on a statutory basis, pre-tax profits fell to £21.5m from £38.3m as costs related acquisitions, amortisation and changes landfill provisions totalling £42.5m weighed down performance.

'Our I&C Division performed particularly well. We've had another very strong year of organic and acquisition growth coupled with a further reduction in customer churn. When we combine this with our unrelenting focus on driving operational performance improvement, this feeds through to improved underlying I&C margins,' said Michael Topham, Chief Executive of Biffa.

'I&C completed seven acquisitions spread across a wide area of the country, demonstrating the strength of our platform into which we can consolidate acquisitions. We have now completed 17 acquisitions since our IPO in October 2016. The pipeline of potential targets remains strong, and we expect to make further acquisitions in the coming 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. This will provide a more efficient, focused structure and position us for growth in the areas where we have advantaged positions.'


At 8:47am: [LON:BIFF] Biffa Plc share price was +5.25p at 233.25p



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