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Biffa Share Discussion Threads
Showing 2026 to 2047 of 2050 messages
|Questor: low valuation, decent yield and the chance of a bid make Biffa a buy
Telegraph 21 February 2017
|worth investing in this rubbish?|
the patient investor
|Notice of an acquisition gone through.|
wet your knot
|Looks like some II's buying in now.|
wet your knot
|next stop for rubbish is 70p|
|Shanks and Manure , shaking|
|Well a very poor start to life back on the market.|
|Naked Trader mentions these and hes posted above ??|
|Looks worthy of review in my opinion. Net debt has been reduced from £0.5bn to £0.3bn in the listing and below 180p is under the expected pricing range. The vendors have only partly sold out. Who wants to pay a premium price to collect waste though!|
|Biffa (LSE:BIFF), the waste company that has become something of a household name over the past few decades, is set to make a return to the London market this week.
Initial trading in the company’s shares will begin on Thursday with full public trading slated to start at the beginning of next week. The company is issuing 118m new shares to the public at 180p apiece and is expecting to raise £262m from the offering. Management has stated that the funds from the offering will be used to pay down debt and pay expenses related to a tax claim from HMRC.
A brand with heritage
Biffa is one of the most recognisable names in the UK. The company’s large branded bins can be found on almost every street, and the group has been collecting the UK’s waste for more than 100 years. The business is also highly defensive as waste collection is a relatively specialised industry — it’s becoming even more so with the introduction of new environmental regulations — where the largest players can grab the biggest market share.
However, this isn’t the first time Biffa has launched itself onto the public markets. The company was forced into an emergency restructuring during 2012 after being bought out by a group of private equity firms in 2008 in one of the last big buyouts as the financial crisis grew. Since 2012 the company has been rebuilding its finances and position in the market, preparing for a return to the stock market.
Today Biffa has all the hallmarks of a successful business. The company is the second-largest waste management company in the UK, has an annual turnover of £927.5m and employs more than 7,000 people. Last year, Biffa reported underlying earnings of £122m. The group collects, processes and disposes of 6.6m tonnes of waste and recyclables for more than 95% of UK postcodes and 2.4m households every year.
Destined for growth?
Biffa’s management believes that a combination of population growth and an increased regulatory burden for the waste industry will see the UK waste market grow 5% at year until 2020. Bolt-on acquisitions will help boost organic growth. Over the past three years, Biffa has made 20 acquisitions worth £53.4m, which includes a £13.5m deal to buy part of recycling management group Cory Environmental in June.
It’s an interesting company with a rich heritage that’s well positioned for growth. Nonetheless, as with all IPOs, Biffa’s comes with a degree of risk. The company has already cut its offering price from 220p to 180p, which implies that demand for the group’s shares may not be as robust as management would have liked.
With IPOs, it usually pays to wait and see how an offering goes and wait for City analysts to publish their thoughts on the company before taking a position. Biffa is no exception. So overall, it looks like a good investment, but it may not be sensible to buy into the company’s float.|
|Profiting off waste
The float of waste company Biffa sometime in October also looks promising.
It's the second biggest waste management company in the UK by revenue. Revenue was £927 million with operating profit a respectable £62.5 million in the last year.
The real question is where is the growth coming from as surely there is only a finite amount of rubbish?
Well, the company reckons it is coming from growth in population and regulation which specifies separate collections and treatment. It also thinks it can lower its costs in disposal. And it is also buying up other companies.
I buy this story and so I think I'm probably going to buy the shares when they launch on the market. Given its profits it is likely to get entry to the FTSE 250 probably in January so funds will buy in.
At the very worst if it goes down you can say to yourself: "That was a rubbish stock pick".|
|Biffa has announced an offer price of 180p a share, giving it a market capitalisation of £450m, ahead of its planned listing on the main market on 20 October. The offer constitutes 47 per cent of the waste management group’s total share capital and should generate gross proceeds of £262m. Management plans to use the proceeds to make legacy VAT payments to HMRC and pay down net debt to two times underlying cash profits immediately following the IPO.|
|Just seen this, way too much debt here, that's why the float price is no were near what they originally wanted.|
|They like to expand thru aquisition. I believe they bought Cory recently. Don't believe the integation of a regional player fits to well with a national player like Biffa. Will the customers accept charges per lift far in excess of what they were paying.
I doubt it.
|That's why i highlighted the date you cheeky monkey|
|Lol, that article is from 2012.... Slightly dated. I'm not even invested here and I can see through your troll status spob!|
|30 September 2012
|could this be downgraded to Junk status :)|
|heading to 90p
will warn in due corse
this kind of rubbish always ends up in a black bag|
|A good short i would think here.
|A good short i would think here.
|the only reason for this float is to pay off debt and pay off existing shareholders
i'm guessing they will be looking to take shareholders for a ride in the future in regard to raising more funds / paying off debts
all just my opinion
please do your own research and read the prospectus for a start|