1st Jun 2021 10:57
(Alliance News) - Biffa PLC on Wednesday said it is "very well placed for a strong recovery" after an encouraging performance in recent trading.
The optimism comes despite the FTSE 250-listed waste management firm making an annual pretax loss of GBP52.8 million, swinging from a GBP56.4 million profit the prior year. The loss included asset impairment charges totalling GBP21.9 million.
High Wycombe, UK-based Biffa posted revenue for the year to March 26 of GBP1.04 billion, down 10% year-on-year from GBP1.16 billion.
"We are pleased to have been able to end the financial year with results ahead of our expectations," said Chief Executive Michael Topham.
"We are strongly positioned for the post-pandemic recovery with leadership positions in our core markets, a well-developed investment programme and exciting growth opportunities ahead, leveraging the group's unique position at the heart of the circular economy."
Despite the impact of pandemic lockdowns Biffa hailed a "resilient" trading performance which had helped protect the group's financial strength.
Biffa said its collections division was "significantly" impacted in the first half due to temporary closures of many of its industrial and commercial customers. First quarter volumes dropped to around 50% of the prior year, followed by a "solid recovery" with full-year volumes at 82% of the previous year.
It added that its future outlook was underpinned by encouraging recent trading, with full-year expectations, excluding the impact of its acquisition of Viridor, unchanged.
No dividends have been paid this year, compared to 2.47 pence in financial year 2020. Biffa said it will continue to review the timing of a dividend reinstatement.
Shares in Biffa were up 5.1% at 307.50 pence in London on Tuesday.
By Will Paige; [email protected]
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