Biffa has issued a trading update this morning (16 July) saying it “is continuing to see a steady recovery in the demand for its essential services”, with revenues at 83% of pre-Covid levels.
Trading in the first three months of the financial year (April-June 2020) is “slightly ahead of the group’s base case scenario”, which was developed at the outset of the COVID-19 pandemic.
Biffa’s revenues are at 83% of pre-Covid levels, it says, with demand for services increasing
Revenues in April were c.70% of pre-COVID-19 run rates and recovered in June to c.83% of pre-COVID-19 levels, the update says.
The Industrial and Commercial (I&C) revenues during July are back to over 80% of pre-COVID-19 levels and landfill revenues are over 70% versus their low points in April, it added.
Biffa said it “is continuing to explore ways of improving efficiency across all areas of its business and has remained underlying EBITDA positive throughout the lockdown period and was underlying EBIT positive in June”.
Equity raise
Last month, the company raised £100 million through a non-pre-emptive placing of new ordinary shares of one penny each in the capital of the company (see letsrecycle.com story).
In today’s trading update, Biffa said this enabled it to deliver its “ambitious sustainability goals and growth in shareholder returns”.
Collections
Biffa says its collections division has secured “pleasing levels of new business wins” in the first three months of the financial year, and headline terms have been agreed on three I&C acquisitions, with “active negotiations taking place on several others”.
“The board remains extremely pleased with the Group’s performance throughout this difficult period”
Elsewhere, Biffa says its resources & energy division is making “good progress” with the second phase of its £27.5m rPET plastics recycling facility in Seaham underway. And it has restarted investment in its £7m Washington plastics recycling facility, and is continuing to make progress with various other investments, including the Protos energy from waste opportunity.
Economy
“The outlook for the rest of the year is dependent on how quickly the remaining restrictions are eased and the pace and shape of the economic recovery,” the trading update said.
It added: “However, the board remains extremely pleased with the Group’s performance throughout this difficult period and confident of its future growth prospects.”
The post Biffa revenues ‘at 83% of pre-Covid levels’ appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
