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magazineBiffa up 43% in six months as performance continues to impress
Biffa (BIFF) 385p
Gain to date: 42.9%
Original entry point: Buy on 11 March 2021 at 269.5p
The underlying business at refuse specialist Biffa (BIFF) has performed well since we highlighted the shares in March and bounced back from the pandemic at a faster pace than management or analysts expected.
Progress has continued with the company recently saying that revenue for the first five months of the financial year through August was 12% higher than the comparable period in 2019 and 3% higher excluding acquisitions.
The core Industrial and Commercial collections business saw like-for-like volumes stabilise slightly above pre-pandemic levels.
Since March consensus earnings estimates for 2022 and 2023 (Biffa has a March year-end) have increased by around 25%.
We are also encouraged by the strategic progress made which includes completing the acquisition of Viridor’s collection business and certain recycling assets which solidifies Biffa’s leading position in waste recycling.
Progress has also been made on developing its energy from waste facilities, the commissioning of a new plastics recycling facility and the roll-out of new Company Shop stores (redistributing surplus food and household products) with a site in Southampton being the latest to open its doors.
SHARES SAYS: We remain buyers.
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