Waste giant Biffa has reported a strong performance for the latest financial year, fuelling renewed rumours of a £1bn flotation.
For the year ending 25 March, its revenue increased by 5.6% on the previous year to £927.5m while its operating profit rose by 27.3% to £62.5m.
Chief executive Ian Wakelin (pictured) said: “This result reflects a strong operational and financial performance across the group and is ahead of the board’s previous expectations.
“We have continued to take advantage of the drive towards industry consolidation in a highly fragmented market. Biffa is a natural consolidator in the industry with the technology, scale, reputation and expertise to grow and build upon its leading and growing market positions.
“With a strong integrated platform and a customer-oriented business model, the group is well positioned to exploit the industry’s significant structural growth drivers. Biffa continues to perform strongly in competitive markets, with all four divisions having made a good start to the current financial year.”
The Financial Times has reported that the firm is now heading towards a potential £1bn flotation on the London stock market next year.
As previously reported by MRW, Biffa favours a stock market flotation rather than a sell-off.
Biffa’s main shareholders, US investment firms Angelo Gordon, Avenue Capital and Sankaty Advisors, had put the company up for sale in 2015. The company is being advised by Rothschild, the investment bank.
The firm recently bought Cory Environmental Group’s municipal and trade business for £13.5m.
Biffa declined to comment.