In the next two weeks, the United - Britain will provide 30 percent more garbage than usual, including six million Christmas tree and 225,000 miles wrapping paper.
For night owls, the holiday season is fun, tiring, indulgent and sometimes exaggerated. For sellers, it is always the most important time of the year. And for Biffa , which is very busy.
Biffa collects garbage to 2.4 million households and 72,000 businesses, including major chains such as John Lewis and Sainsbury. The company is in the waste treatment and recycling paper, plastic and metal, and creates energy heavily involved from food and landfill gas.
then at full speed: Biffa is set with a seasonal increase of 30 percent in fiscal
Biffa shares are 244½p and is expected to increase in the coming years. The company is growing, dividends are decent and CEO Ian Wakelin direction is determined to make the best and most profitable companies.
It was founded in 1912 by Richard Biffa. First, a transport company based in London, he spent most of the last 115 years in the waste. Most recently, he was part of the water group Severn Trent, then spent a decade in private equity funds and real estate.
The company floated in September 2016 180p per share, even though their owners had previously expected a price between 220P and 270P. difficult market conditions put on the ambition paid but Biffa has also worked in the last 15 months, the doubters wrong turns. The best is yet.
As the largest waste collector UK, Biffa is in an interesting position. It was not long ago, as most of the waste in the UK went straight to the landfill where they just go to rot. Today, around 45 percent of household waste and more than 50 percent of industrial waste is recycled.
The trend is not only good for the environment, but also wasted a liability to an asset.
Over the past month interim results as Biffa basis delivered underlying profit of £ 43 million for the six months to 30 September in this figure, £ 24.7million came from the collection of commercial waste, a lean £ 4.4 million came from a collection of household waste and recycled £ 23.6million and convert waste into energy.
Biffa operates can handle two large recycling plants 400,000 tons per year, equivalent to recycling produces more than one million homes. These facilities make unwanted products that can be sold for a good sum container.
significant amounts are sent to developing countries to objects such as boxes or metal clips to China, the largest buyer of recycled materials. China insisted recently that recyclers to improve the quality of shipments to Biffa reconfigure their systems to ensure compliance.
The company also operates a plant that used plastic milk container converted into new bottles. is very successful, it accounts for 15 percent of all plastic milk bottles sold in the UK.
Biffa waste collected 2.4 million homes and 72,000 businesses, including major chains such as John Lewis
Biffa has also anaerobic digestion of food waste into electricity to the national grid and capture of methane gas from landfills sold to transform, which is converted into energy.
Wakelin wants to increase sales and profits from recycling and energy. The group was connected to Covanta, a US company and one of the largest companies in energy waste in the world.
Both have permission for two large sites within Leicestershire and Cheshire who refuse to be burned to generate electricity. There are similar sites in the UK, but not enough of them for tons of waste that could be converted into energy instead, is disposed of in landfills.
The new locations were about Biffa and Covanta build cost £ 500 million so he must ensure that the project is the first commercial sense. The analysis is underway and a decision will be made next year. Meanwhile, other developments underway, such as a plant that collects and recycles waste sweepers.
BIFFA also developed both organically and acquisitions, while Wakelin is determined to make the most effective group due to the increased use of digital technology. Biffa takes 8,000 calls a day from customers, for example, of which include many orders or payments that could be made online.
Wakelin is also relevant trucks with telematics boxes, safe driver the right way and have unforeseen remains at work. Broker expected profits by 31 percent to £ 59 million increase for the year to March 2018 to reach £ 65 million next year.
A dividend of 7p is penciled in the current year, moved up 7.3p in 2019 upwards.
Midas verdict: Size Matters in trading of scrap, as the rules more expensive and complex treatment. Biffa is well positioned and should make substantial progress. In 244½p, stocks are a buy.
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