Biffa has released a trading update detailing how it has been impacted financially by the Covid-19 pandemic, saying that despite disruption it is “well placed to weather these unprecedented trading conditions”.
The company says it has over £150m of available liquidity but was forced to furlough 35% of its industrial and commercial employees following a 50% reduction in revenues from the sector.
Biffa released the update ahead of its full year results next month
The update was released today (May 6) ahead of Biffa’s full year results on 6 June.
Commercial
Biffa says that its industrial and commercial division, which provides services in food manufacture and retail distribution, health and utilities, is the most severely impacted part of its business.
Biffa said this division is down 50% during the pandemic but has continued to serve customers providing “essential services such as food manufacture and retail and distribution”.
This is because almost “all revenues from customers affected by the lockdown are ceasing for the time being”.
Municipal
Biffa’s municipal business has remained “resilient” with revenues “remaining stable”, the update says. Biffa says it has worked with clients to ensure continuity of all services despite increased staff absence.
Energy
Across Biffa’s resources & energy division, the impact of the pandemic is “varied”.
Biffa says that the most notable impact on this part of business has been landfill operations which rely on the construction industry for a large proportion of business.
These revenues have reportedly reduced by around 50% compared to their position before the Covd-19 outbreak. The other areas of the business are impacted but “holding up well”.
Biffa has also now seen “stabilisation” of the above trends across all business areas while the economy remains in lockdown.
Financial
During the pandemic, swift and decisive action has been taken to mitigate the impact the crisis has had on its trading performance and to protect the Group’s finances.
“The board is encouraged with the progress that the group has made in a short period of time and would like to extend its thanks to the entire Biffa team”
This includes taking more than 40% of the frontline fleet off the road and furloughing more that 35% of industrial and commercial employees.
Biffa has also been “reducing cash outflows wherever possible” and implementing a number of remuneration-related measures.
At the financial year ended 27 March 2020, the Group had over £150m of available liquidity. This strong liquidity position, combined with the decisive action taken to control costs, leaves Biffa well placed to weather these unprecedented trading conditions.
The report concludes with a message from the board saying it is encouraged by the progress the company has made.
“The board is encouraged with the progress that the group has made in a short period of time and would like to extend its thanks to the entire Biffa team for their exceptional response to the coronavirus crisis. As a result of these ongoing efforts, the board remains confident that as the year progresses, it will be able to refocus on delivering its strategic growth plans and sustainability strategy”.
The post Biffa ‘well placed’ to manage Covid-19 storm appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
