14th Jan 2021 10:49
(Alliance News) - Biffa PLC's third quarter went better than expected, the waste management firm said on Thursday, despite the UK tightening Covid-19 restrictions.
Its performance since its half-year ended September 25 "has continued to be ahead of the group's base case expectations", with net revenue in the third quarter at roughly 95% of the prior year's levels.
Biffa said this was despite the UK introducing the tiered system of restrictions, as well as November's second nationwide lockdown in England.
"However, the impact of the current lockdown restrictions on Biffa's businesses is expected to be more material than during the second lockdown," Biffa added.
England entered a third lockdown last week. As a result, Industrial & Commercial volumes are estimated to drop to around 70% to 75% of the previous year's levels, having been at 85% in November, Biffa said.
The new restrictions will offset progress made in the second and third quarter, so Biffa left its guidance unchanged.
Biffa added that Simply Waste Solutions and Ward Recycling bought for GBP35.0 million and GBP2.1 million, respectively, "are performing in line with expectations".
Phase two of its Seaham recycling plant is still expected to come online in the early part of financial 2022, despite the latest UK restrictions.
Biffa shares were up 1.3% at 241.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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