Biffa Share Discussion Threads

[mrminister] 18/10/2006 16:22

theband,
think you have your reward today........

[theband] 18/10/2006 00:35

Can anyone explain why price was drifting all day (17th) when there were loads of people buying quite large amounts £500k plus and not many sellers ?

[rogerl] 17/10/2006 13:43

Bought today on the basis that the downside very definitely limited, independance from Severn Trent I see as positive and takeover possibility a bonus. Whatever the government says we are unlikely to generate less rubbish at least in the next few years so Biffa likely to grow. I would be happy with 10% pa growth inc dividend.

[theband] 16/10/2006 22:53

Did you know this is Barclayshare share of the week. Mr. demoman, could this be THE KISS OF DEATH.

[theband] 16/10/2006 22:49

Mr.Demolition, please dont type in capitals, your scaring me.

[mr demolition] 16/10/2006 19:05

one of the cheapest stocks floated.£5 plus soon and take over target.

[mr demolition] 16/10/2006 17:02

WILL BE TAKEN OVER.....

[amanverma] 11/10/2006 16:45

Maybe the large Spanish waste company are looking into this?

[sogoesit] 11/10/2006 12:43

thanks for info. clusium... its still in demand today anyway.

i prefer these companies to give some yield but since only two on the market maybe they''ll be in demand and, potentially, over-priced.
i'll wait and see.

[clusium] 11/10/2006 11:34

Thank you Gateside.

[gateside] 10/10/2006 19:31

The two that I know of are Shanks and also Viridor, who are part of Pennon

[clusium] 10/10/2006 19:26

Analyst told me over phone the payout would be in region of 6.6%, which would give about 2.5% yield. He said he was taking it from the prospectus, which I don't have. Not quite so expensive if so.

If BIFFA are the second in waste management, according to Citygroup, who is the first?

[sogoesit] 10/10/2006 17:42

will this stock pay a dividend, anyone know?
looking for shares with yield and capital growth upside (hold KEL, KIE on this basis and served me well); also this looks like a potential acquisition for someone.

ok, found my answers:
Prospectus says payout ratio will be 43% to 47% (cover of 2.1 to 2.3 x earnings);
Proforma FY earnings 05/06 looked like £65.5mm under IFRS so payout approx. £29mm but they say £18mm - £19.5mm.
Oh well, take £20mm / 352.323mm shares = 5.6p / 260p = 2% yield.
Looks overvalued at 260p to me on yield.. so maybe its a "growth" stock.
reegards,

[greenroyd] 10/10/2006 13:33

Comment from todays "Independent" Investment column :

The group made a profit of £66m last year and this figure is tipped to rise to £74m.The shift towards recycling waste and rising landfill prices means that the industry in which Biffa operates is growing at between 5 and 10 per cent a year. As the UK's number two player, it is well placed to benefit from this trend. Recent private equity acquisitions in the sector have been completed at a premium to the group's current valuation, making Biffa shares worth holding on to.

[clusium] 10/10/2006 07:16

Thank you, Gateside. Just what I was hoping for.

[gateside] 10/10/2006 07:05

Biffa got off to a good start on completion of the company's demerger from Severn Trent.

Cazenove initiated coverage on the stock with a buy rating and 290p price target.

Biffa shares hit a high of 282p this morning after opening at 257 pence, well above the 260p demerger valuation, in heavy volume.

Severn Trent shareholders received one new Biffa share for each old share held after the shares were consolidated on a two-for-three basis, and £576m of surplus capital was returned, equivalent to 165p per old Severn Trent share.

In comment published this morning, Cazenove said it values Biffa at 9 times its March 2007 Enterprise Value/EBITDA rating, which is lower than the recent take-out price of its UK peer Cleanaway, which was sold by Brambles to Veolia Environnement SA for £595m.

The broker pointed out that Biffa is the number 2 UK player, with an estimated 8% share of the UK waste management market, comprising 6% of the collection services segment and 12 pct of the landfill segment.

Cazenove noted that the waste management is an essential service and has utility-like qualities, so demand trends should be resilient.

It added that waste volumes in the UK are growing by 0%-1% per annum but the UK waste management industry by value is growing at 5%-10% per annum with regulation stimulating a shift from landfill to recycling, and landfill scarcity driving up prices by 8%-10% per annum.

Cazenove added that Biffa's 73 million cubic metres of consented void landfill is a scarce asset in the UK, with limited new space entering the market giving Biffa a protected market position.

[royaloak] 09/10/2006 22:52

After hours BIFF announce Citigroup as corporate advisor. BIFF could be attractive to someone!

[gateside] 09/10/2006 22:10

1116 GMT [Dow Jones] Severn Trent (SVT.LN) and Biffa's (BIFF.LN) trading are more or less in line with expectations after Biffa demerged from Severn Trent, says a utility analyst. Says he expected Biffa to open at 270p and Severn Trent to trade at around 1476p "assuming that nothing has changed and no value has been destroyed." Adds that market initially took a different view on Severn Trent, causing shares to slide. But price has since recovered. Says both stocks "look right" after the demerger. Severn Trent -5.4% at 1454p. Biffa +4.1% to 267.5p.

[clusium] 09/10/2006 19:55

So is this the place for your SVT special dividend? Informed comment humbly sought by an amateur beneficiary.

[gateside] 09/10/2006 08:19

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