LONDON (Alliance News) - Waste management firm Biffa PLC hiked its dividend Wednesday as it swung to a profit in 2017 after costs associated with its 2016 listing disappeared, whilst Chief Executive Officer Ian Wakelin announced his departure.
For the year ended March 30, the waste management firm swung to a pretax profit of GBP38.3 million from a loss of GBP18.7 million the year prior. This was after revenue rose to GBP1.08 billion from GBP990.4 million the year before.
More importantly, profit performance benefited from a sharp fall in exceptional costs in the year. One-off costs fell to GBP21.3 million from GBP63.8 million the year prior. This was primarily due to the GBP29.1 million costs associated with its 2016 initial public offering not repeating.
In October 2016, Biffa raised GBP262 million through its initial public offering. At 180 pence per share, the IPO price valued the firm at GBP450.0 million. Shares in Biffa were 3.0% lower at 234.20 pence on Wednesday.
On an underlying basis - excluding exceptional costs - pretax profit rose to GBP59.6 million from GBP45.1 million the year prior.
''We are delighted to report another year of strong performance by Biffa," Wakelin said. "Our strategy remains unchanged; to grow market share, develop services and infrastructure, and optimise systems and processes, and we are pleased with the progress made against all three of these strategic goals."
"In the year we completed seven acquisitions spread across a wide area of the country, demonstrating the strength of our platform into which we can consolidate acquisitions," Wakelin continued. "The pipeline of potential targets remains strong, and we expect to make further acquisitions in the coming year."
"The recycling markets continue to be challenging," Wakelin added. "However the environmental and economic drivers of recycling remain compelling, and the actions we are taking position us well for the future. We believe Biffa is well positioned in all of the its key markets and we look forward with confidence.''
Biffa hiked its final dividend per share to 4.53 pence, up 89% from its maiden 2.40p final and full-year dividend the year prior. For all of 2017 year, the total dividend is 6.70p.
In a separate announcement, Wakelin announced he will be leaving the firm to be replaced by Chief Financial Officer Michael Topham once a replacement as finance head is chosen.
Wakelin - CEO since 2010 - informed the board of the firm that he no longer wished to hold a full time executive role. As a result, Topham - CFO since 2013, having joined the firm in 2010 - will replace him once a new CFO is appointed.
"I will be very sad to leave Biffa," Wakelin said. "I have thoroughly enjoyed the last eight years and will leave satisfied that we have achieved a great deal including successfully bringing the business back to the stock market."
Biffa Chairman Ken Lever said: "Ian can feel extremely proud of what he has achieved at Biffa. He will be leaving a business in good health, the result of the growth strategy which he and his colleagues have been implementing for the last eight years."
Topham joined Biffa after the latter acquired Greenstar UK - where he was finance director - in 2010. He has also held divisional managing director and finance director roles at Biffa before his current role.
"We are delighted that Michael will be Ian's successor," Lever added. "Michael has played a major role in the development of the group and the evolution and implementation of its strategy since he joined the business in 2010. Moreover, he played a central role in, and has become widely regarded since, the group's IPO. We believe the business will continue to be in excellent hands when Ian hands over the reins to Michael."
In addition, Biffa appointed Carol Chesney as non-executive director from July 12, taking up the role of chair of the audit committee as well.
Chesney is currently company secretary at FTSE 100-listed safety protection firm Halma PLC. She also serves as a non-executive at Renishaw PLC and Hunting PLC, both also as chair of the audit committee.
Biffa added it was looking for another non-executive director appointment.
