Trading Update

Biffa plc

Stronger than expected Q3 - on track to deliver full year expectations despite impact of third lockdown

14 January 2021

Biffa plc ('Biffa', 'the Group' or 'the Company') (LSE: BIFF), the UK's leading sustainable waste management business, today issues a trading update for the financial year to date.

Group performance since the half year has continued to be ahead of the Group's base case expectations. Despite the impact of the various tiering measures and the second lockdown, Group Net Revenues in the third quarter were circa 95% of levels achieved in the same period in the prior year. As a result, underlying profits have also shown further recovery.

However, the impact of the current lockdown restrictions on Biffa's businesses is expected to be more material than during the second lockdown. The Group's best estimate at this stage is that I&C volumes will drop to around 70-75% of prior year levels (having dropped to circa 85% of prior year levels during November). The Group is seeing similar trends in Landfill volumes and expects the ongoing depressed rPET flake and PRN prices to continue through the final quarter, impacting the contribution from Biffa's Seaham facility.

The offsetting impacts of stronger than expected trading during the second and third quarters, and lockdown during the final quarter, result in the Board's expectations for the full year remaining unchanged.

Strategic Update

The acquisitions of both Ward and Simply Waste, which were both acquired over the course of the financial year, are performing in line with expectations. Active negotiations continue on several other potential acquisitions and the pipeline of opportunities remains strong.

Despite the current lockdowns across the UK, phase two of the Seaham rPET plant and projects at Washington and Aldridge are progressing to plan, and the Group expects all three to come online in the early part of FY22.

The Group announced financial completion of the Protos energy from waste project in December and is making good progress against the construction milestones on both this and the development of the Newhurst facility.

Outlook

In the short term the Group's priorities remain to protect the health, safety and wellbeing of its people whilst maintaining the provision of essential services to its customers and protecting its financial health.

The Group's performance demonstrates its resilient business model and it will continue to invest to help build a stronger, more sustainable business once it emerges from the pandemic. The Board therefore remains positive on the Group's outlook for FY22 after the impacts of the pandemic are over.

Investors

Michael Topham, Chief Executive Officer

Richard Pike, Chief Financial Officer

[email protected]

Media & Analysts

Houston

T: +44 (0) 204 529 0549

[email protected]

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the Company's business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

The forward-looking statements contained in this document speak only as of the date of this announcement, and Biffa does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 

About Biffa

Biffa has been at the forefront of the UK's waste industry for over a hundred years, with operations that span the entire breadth of the waste management process including collection, recycling, treatment, disposal and energy generation. We exist to change the way people think about waste; to help people see the opportunities that exist when we manage our waste in the right way, and to make that happen. We understand the vital role we have to play in helping the UK to address the climate emergency and deliver sustainable growth. This involves an ambitious investment programme in green economy infrastructure and low carbon collections, alongside an ongoing commitment to sector leadership in the health, safety and wellbeing of our people. Biffa is a Great British company. It has been listed on the London Stock Exchange since October 2016 under the ticker "BIFF". In March 2020, Biffa entered the FTSE-250.

For more information visit www.biffa.co.uk/investors