Biffa has revealed that a ban on plastic recycling being shipped to South East Asia has taken a hit, the company revealed.
Biffa who are the largest collector of commercial waste in the UK said they are to spend £27.5m to take more plastic recycling to their Seaham, County Durham plant.
Pre-tax profits in the year to 29 March was down by 44% to £21.5m, and revenues were up by 3.3% to £1.1bn.
Michael Topham, chief executive said the company “successfully weathered the headwinds associated with the Chinese import restrictions on commodities.”
Topham said that household bin collections in their municipal division was dragged down by profits as a result of loss making contracts.
He added, “Both of these areas, which have put downward pressure on our financial performance, have now stabilised.”
Revenues in the municipal division were down by 4% to £164.6m whilst underlying pre-tax profits were up by 13.2% to £87.4m.
The company will now be split into two divisions, resource and energy and also collections.
Topham said the split “will provide a more efficient, focused structure and position us for growth in the areas where we have advantaged positions.”