Biffa Share Discussion Threads

[46pete] 01/10/2007 14:28

Very true mark....

[markinthepark] 01/10/2007 14:27

FTSE 250 movers: Biffa sweet trading update
Mon 01 Oct 2007

LONDON (SHARECAST) - Waste company Biffa is smelling of roses today after it said trading in its second quarter had picked up, with encouraging performance from its resource recovery, landfill and power generation divisions.

The collection division has had a sub-par first half, the company said, but a number of new accounts came on stream in the second quarter and results for this division over the full year should be in line with those seen last year.

Resource recovery and landfill has been boosted by increases in both landfill volumes and unit revenue and by the new site at Cottonmount in Northern Ireland.

Power generation improved following the renegotiation of NFFO contracts, which should underpin the future profitability of this division.

UK Commercial Property's revaluation of its portfolio of properties did the company's shareholders no favours, as it revealed a 3.15% decline in value to £843m at the end of September from £871m at the end of June.

The company said it expects net asset value per share has fallen by about 3.5%.

[markinthepark] 01/10/2007 14:22

oh well...with all this enthusiasm being shown that should be the kiss of death for these.....-;)

[volvo] 01/10/2007 14:21

Well well well.What a great day and plenty of strength.I can see this 2.60p very soon.

[pictureframe] 01/10/2007 14:17

looks like the market agrees ;0)

[pictureframe] 01/10/2007 13:30

Hi all,

Happy to hold these med term, statment was soothing. If someone is going to pounce its going to be soon imho

[theband] 01/10/2007 12:21

I am tempted to average down from 295 :0( but will see how day pans out. This always seems to fall back just as it starts looking positive dyor

[watwungyi] 01/10/2007 11:54

theband,

i sold tate with a loss before the market turmoil in aug/sep. now tempted to buy back after recent fall. us ingredient business is still doing well. but i am concerned about splenda performance and continued dollar weakness and company's share buy back scheme. instead of that, they should knock off debt.
this is certainly a year to forget for tate holders. goldman predicted dollar to gain strength again next year, if that is the case, that should support sterling return. and also the fact that tate has new installations, mainly at sagamore and singapore, means their cap-ex for grwoth needn't take away too much of the profit. i added biff at 229 two weeks or so ago. now today update gave me confidence to add more.

[markinthepark] 01/10/2007 11:54

Looks like most have been short here or sold.....the shares are showing good gains since last week and hardly a word has been posted!!

[markinthepark] 01/10/2007 10:31

Biffa offers more hope

Rodney Hobson, 01/10/07 09:41

Generally strong trading has continued at waste disposal group Biffa and a shortfall in the collection service is likely to be made up in the second half.

Biffa says in a trading update that it has continued to see 'encouraging performances' from resource recovery, landfill and power generation into the second quarter, which ran to 28 September.

In the resource recovery and landfill division, the strong performance reported in the second half of the financial year to last March has continued into the first half with increases in landfill volumes and revenue.

This performance has been boosted by a new site at Cottonmount in Northern Ireland, which opened last November, finance director Tim Lowth says.

Power generation was helped by the successful renegotiation of less profitable contracts.

Both these divisions are expected the division to show continued growth for the full year.

The collection division saw 'a number of significant new accounts' coming on-stream in the second quarter, so although the first half to 28 September fell short of the same period last year Lowth expects the full year to be in line with 2006-7.

Prices have been cut to make the operations more competitive.

Modifications to the treatment plant at Leicester mean that operations in the city have returned to profit.

Lowth says progress is being made across the company to prepare for new regulations that come into effect on 30 October.

Interim results will be announced on 28 November.

The shares rose 8.5p to 230p. We think that is probably far enough for now, with a forward PE of 13.6 and a prospective yield of 3.4%.

Kevin Lapwood at Seymour Pierce has nonetheless reduced his rating from buy to outperform and cut his target price for the share to 280p. He says local refuse collection is still struggling against the competition despite price cuts and the recent problems in the credit market make an early bid for Biffa less likely.

Nick Spoliar at Landsbanki says buy, describing the statement as reassuring.

[powerbook] 01/10/2007 09:50

closed my short. i'm a buyer at 270p, seller at 210p. good luck all

[mitzis] 01/10/2007 09:13

Utility companys are just great arnt they better than Banks these days.

[jezboy1] 01/10/2007 09:11

told u guys - classic shakedown in the two weeks earlier.

good to see u all stuck around

[volvo] 01/10/2007 08:41

Always nice when a plan comes together.

What makes Biffa attractive is it is a utility service company.

Its revenues are stable and are set to grow at a steady pc per year.

It pays a dividend.

It is percieved as a top defensive stock,waste management is a here to stay.

At these prices it is a prime takeover target.

At such a low pe to its rivals.

[theband] 01/10/2007 08:21

Wat....were you still in tate Friday ?? I got out on previous slump but look how they recovered. Do you think they could do it again. Others interested in Tate here so sorry not on biff subject, but they seem to be doing ok on their own today anyhow.

[watwungyi] 01/10/2007 08:02

buy now or it will be too late.

[mr.oz] 01/10/2007 07:58

Collection service sounds like it will grow further in the second half, all else sounding positive already.

[theband] 01/10/2007 07:56

I didnt see any phrases like 'difficult months ahead' or 'consequently the board have resigned en masse ' so thats encouraging.

[volvo] 01/10/2007 07:26

Steady statement just as predicted.

The collection division was under pressure thats why the share price is here.

Confirmed that last years figures will be matched by year end in collections AND growth continues in all other divisions.

The markets should be soothed but who knows.

[mr.oz] 01/10/2007 07:20

Biffa Plc
01 October 2007


BIFFA PLC


CLOSE PERIOD TRADING UPDATE


1 OCTOBER 2007


Biffa Plc today announces an update on trading for the 26 weeks ending 28
September 2007 in advance of announcing its half year results on 28 November.


Following the release of our interim management statement in July, we have
continued to see encouraging performances from our Resource Recovery and
Landfill and Power Generation divisions into the second quarter.


In our Collection Division, we have had further success in the national accounts
sector with a number of significant new accounts coming on-stream in the second
quarter. We are continuing with the implementation of our revised pricing
strategy and customer services initiatives in the local account arena. Following
the completion of plant modification works to our mechanical-biological
treatment plant earlier this year, our operations at Leicester have now returned
to profit. Performance for the full year from our Collection Division is
expected to be in line with the prior year, following a first half performance
anticipated to be below that of the prior year.


In our Resource Recovery and Landfill Division, the strong performance reported
in the second half of 2006/07 has continued into the first half as we benefit
from increases in both landfill volumes and unit revenue. This performance has
been boosted by our new site at Cottonmount in Northern Ireland, which opened in
November last year. For the full year we expect the division to show continued
growth.


Our Power Generation Division continued to perform strongly in the first half of
this year. This was assisted by the successful renegotiation of less profitable
NFFO contracts thus qualifying additional power output for ROCs, which should
underpin the future profitability of this division. For the full year we expect
the division to show continued growth.


We continue to make good progress across the Company in preparation for the
introduction of the pre-treatment regulations which come into effect on 30
October.

[mr.oz] 30/9/2007 20:29

Analyst Estimates:

Earnings Est..............2007.............. 2008
Avg. Estimate ...........14.8................16.04
Low Estimate ...........14.34..............15.64
High Estimate .............16................16.47

Revenue Est ............. 2007...............2008
Revenue Avg. Estimate ... 796.6........ 864.25 M
CashFlow per share ..... 34.44 ...........35.68
Ebitda Avg. Estimate...162.09 M .......168.80 M
Ebit Avg. Estimate........ 96.45 M........103.89 M
Pre-Tax Avg. Est .........76.54 M..........83.01 M
Net Profit Avg. Estimate 49.89 M........50.21 M
Dividend per share ......... 6.76............ 7.4
Net Assets per share .....195.78......... 204.45
Net Debt Avg. Estimate...359.53 M..... 343.04

[mitzis] 30/9/2007 18:01

Thanks pictureframe I am expecting a fall to 350p but if or when they touch 350p I will be a buyer for the first time. cheers.
80 mill profit tomorrow..

[pictureframe] 30/9/2007 10:47

mitzis - 30 Sep'07 - 10:16 - 1366 of 1368


Let me know when you get back into Tate again pictureframe I have a mate who has retired recently who holds under a bonus scheme and he would be interested to know to invest and me too.

Hi Matiz,

Afraid it pretty much in up in the air with Tate, weak dollar and ongoing low Splenda up take will continue to give them problems.

That said they are a major brand with well know products + they have now issued their 3rd warning (sure you know about profit warnings coming in three's).

Personally I am waiting for another 15-20% off current price before taking a stake. Off course this might not happen ;0)