19th Jul 2021 10:59
(Alliance News) - Biffa PLC on Monday said its new financial year has started with a bang, as first quarter trading was "well ahead" of the waste management firm's own expectations.
Biffa still sees some near-term obstacles, particularly with supply chain issues.
The High Wycombe, England-based company said revenue in the three months to end June was 10% higher than in 2019, before the pandemic struck.
Biffa shares were up 2.1% at 333.50 pence each in London on Monday morning.
Biffa said the good performance was due to a faster-than-expected recovery in the UK and strong recycled commodity prices, which are at the highest levels since 2018 according to the company.
Industrial & Commercial volumes in July hit levels seen two years ago.
However, Biffa warned about a few problems.
"The group is facing some near-term challenges caused by the national shortage of HGV drivers which is now being exacerbated by Covid-19 related absences, together with other widely reported supply chain issues, however these are being carefully managed," Biffa said.
Looking at the rest of the year, Biffa said its outlook is connected to the strength of the UK economy. If economic recovery continues on its current trajectory, the company expects full-year adjusted earnings before interest and tax to be 10% higher than the current market consensus, which is at GBP87.6 million.
Biffa recorded Ebit, excluding adjusting items, of GBP44.2 million in the 2021 financial year, which ended this past March, and GBP90.5 million in financial 2020.
"The board is pleased with Biffa's underlying business performance and remains confident of the group's long-term growth prospects," Biffa said.
By Greg Roxburgh; [email protected]
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