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Lucrative refuse contracts are driving City interest in Biffa Waste firm Biffa has hit back with a strong set of financial results, after rejecting a bid from two private equity firms. The local government contractor has been approached twice recently by private equity firms Montagu and HgCapital. The two firms made a joint bid to the Biffa board on 4 September, which was rejected three days later. A second approach to the board was made on 27 November, and a spokesman for Biffa said it would be considered in due course. Biffa's share price soared by more than 25% after speculation over a takeover bid, which was rumoured to have been from fellow local government contractor, Veolia. In a joint statement, the two private equity firms said: ‘Montagu and HgCapital remain keen to enter into substantive discussions with the board of Biffa and remain highly committed to pursuing a possible offer for the company. There can be no certainty that any further proposal will be made to the board of Biffa, or that any offer or transaction will result.' Biffa announced its interim results for the six months ending 28 September, which included a 7.2% jump in operating profits to £52.4m, and a 4.9% increase in revenues to £395m. Chief executive officer, Martin Bettington, said: ‘In a period in which the group has implemented substantial changes in preparation for the pre-treatment regulations which came into effect at the end of October, we are pleased to report good growth in revenues, operating profit, adjusted earnings and free cashflow in the first half of this year. ‘In line with our previous expectations, we anticipate continuing good progress for the remainder of the year, and are well positioned for the future.'

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BUSINESS

Biffa posts strong results

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