This is a waste management services firm. Biffa has sustainability at the core of their values, offering services like waste disposal, treatment and collection to the industrial and commercial sectors, serving clients throughout the UK.
Been looking into Biffa for a while and all the fundamentals seem good, so brought around £25 worth, they are very undervalued, so hoping to make a small profit.
I’ve not looked into them in great detail, i do wonder if they are one of the ‘rubbish needs picked up rain or shine’ kind of companies. They’re also surprisingly everywhere.
Yes, my thoughts too. They have the infrastructure, they even do contracts for some local councils. Surely it would be cheaper for councils to use Biffa than their own refuse collection?
I can see things going far for Biffa.
It depends on various factors eg size of the council’s population, what type of waste management facilities the council wants, whether there is any existing waste management facilities etc.
A lot of local council waste contracts are done through PFI which helped build capital intensive waste facilities and avoided public borrowing, but they come at a cost to the council tax payer and sometimes to the contracted company (in that the complexities and restrictions of the contracts can be very difficult/expensive to alter to take advantage of changes in the waste and recyclates market).
Typically waste management companies (assuming they have some long term public contracts) are reasonably stable long term investments.
I bought a handful of Biffa shares years ago with the intention of buying more but the company got bought out soon after. I got my money but was disappointed that my plans had been scuppered.
Now considering getting Biffa shares again. Perhaps not an exciting company but a steady provider of essential waste services for the long haul.
Really steady share 28%+
Whats happening to biffa? 28% rise today!
Take over offer
Is that a good thing?
The offer isn’t formal yet but looks to be 445p. This is a substantial uplift from the close on Monday and would represent the higher than the company has ever been traded at.
The buyer clearly thinks it’s worth more to them than the market thinks, you’ll not get a say but if it goes through at 445p you’ll make a nice profit.
That depends on your point of view, I suppose if you hold shares you are going to make a good return, if you work for biffa or are a customer of theirs possibly not if conditions of employment are made worse or prices increase.
The share price peaked at 415p and has dropped since. Does this suggest that the market doesn’t believe that a formal offer will happen?
Not necessarily I held this but decided to sell at 410 and take my profit and put it elsewhere it’s not uncommon for shares that have an offer pending to peak and then slide back a bit.
Any news on the buy out?
Found this @davidhardman
the waste management company also announced that the deadline for Energy Capital Partners to submit a firm takeover bid has been pushed back from today to 30 August.
Is the take-over bid back on?