Biffa sees revenue rise amid challenges of Covid-19
Waste management company Biffa said it is saving cash due to the Covid-19 pandemic which has brought "unprecedented challenges".
The firm, which runs collection services in Stafford, Cannock and South Staffordshire, said the impact of the pandemic has been varied across its services but recent weeks have seen an improvement.
It comes as the FTSE 250 company registered a 6.6 per cent revenue rise to £1.16 billion in financial year that ended March 27, from £1.09 billion the year before.
Pre-tax profit more than doubled to £56.4 million from £21.5 million. Also helping the profit jump was a reduction in "other items", these costs fell by about two thirds to £15.3 million from £42.5 million.
Biffa's full-year payout was chopped by about two-thirds to 2.47 pence per share from 7.20p.
"As part of our Covid-19 cash conservation package of measures, no final dividend recommended for financial 2020," the company said.
"It was not until the final couple of weeks of the year that the impacts of Covid-19 became truly apparent. Biffa's management reacted swiftly to the changing economic circumstances and the significant reduction in demand that the business has experienced since the year end, especially in the industrial and commercial collections and landfill operations businesses."
Biffa added that some employees were furloughed as a result.
Chief executive Michael Topham said: "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 merger and acquisition 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."
