Shares in FTSE 250 waste management Biffa (LON:BIFF) slipped 6.67% to 244.99p (as of 14:35 BST) after reporting that trading in the landfill and I&C arms had seen 50% drops in revenues during the COVID pandemic. Revenues for the year ended 27th March were up by 6.6% and underlying profits before tax improved by 12.1%.
CEO Michael Topham commented: “Events since March have, for obvious reasons, completely overshadowed what was otherwise a very successful year for Biffa. We delivered a strong set of financial results, continued to execute our exciting growth strategy, and committed to an ambitious 10-year Sustainability Strategy, ‘Resourceful, Responsible’ which will see the Group unlock £1.25bn of investment in green economy infrastructure by 2030.
“We continued to make good progress in our I&C business, through a combination of organic growth, a number of acquisitions and a standout performance in our Specialist Services business. The Municipal business stabilised with some excellent new business wins and contract extensions. In Resources & Energy, a strong performance in our Biffa Polymers business offset some weakness in the recycling facilities that arose from ongoing softness in commodity prices.
“Whilst the COVID-19 pandemic has brought unprecedented challenges, I am very proud of the way Biffa has responded with a series of swift and decisive measures focused on protecting our people, continuing to serve our customers and maintaining our financial strength. Proactive steps to conserve cash have included temporarily suspending M&A activity and dividends; reducing capex, operating costs, pay and bonuses; utilising Government assistance where appropriate and securing the necessary support from our lenders and suppliers.
“These actions have placed us in a strong position to withstand the immediate impact of the crisis as we continue to provide critical and sustainable infrastructure and services“.