Biffa holds guidance as August revenues, profits recover
Waste management firm Biffa said revenues had recovered to 90% of full year levels with underlying profits improving monthly as it maintained annual guidance.
The company on Wednesday said industrial and commercial (I&C) revenues were at 87% and industrial 86% last month, adding that it expected to stop furloughing staff at the end of September.
Ongoing pressure on plastic prices will impact trading at Biffa’s Seaham plant until it starts to produce food grade recycled materials in April 2021, the firm said in a trading update.
“The collections division has now completed its first I&C business acquisition of the year, of a trade waste business which had pre-Covid-19 run rate revenues of around £4m. Active negotiations continue on several other deals and the pipeline is expanding as expected,” Biffa said.
“Whilst the outlook for the rest of the year is dependent on the pace and shape of the economic recovery, based on the recovery to date, the board's expectations for the full year remain unchanged.”
The FTSE 250 company in June raised £100m in a placing to reduce leverage, help weather the Covid-19 pandemic and allow it to take advantage of any opportunities that might arise.