Biffa swings to loss but remains upbeat on recovery after acquisition spree
Biffa today said it had swung to an annual pre-tax loss of £52.8m after a year of exceptional charges.
The waste management firm’s loss compared with a profit of £56.4m a year before, but the company is “strongly positioned” for a post-Covid recovery.
Biffa has been on an acquisition spree in recent months, having confirmed the purchase of fellow waste management company Viridor’s collections business for £126m two weeks ago.
Since 2013, it has snapped up 45 companies to cement its leading market position and consolidate a previously diverse industry.
Biffa’s revenue also fell 10.4 per cent to £1.04bn during the year, and the company did not declare a final dividend due to the impact of the pandemic.
Following the full year results, shares in Biffa shot up 5.6 per cent as markets opened.
Michael Topham, chief executive of Biffa, expressed his confidence in the group’s outlook despite a challenging year.
“We are strongly positioned for the post-pandemic recovery with leadership positions in our core markets, a well-developed investment programme and exciting growth opportunities ahead, leveraging the group’s unique position at the heart of the circular economy.
“Adding to the progress we made in the year, the recent announcement of our agreement to acquire Viridor’s collections business and certain recycling assets is another significant step for Biffa, further accelerating the delivery of our growth strategy.”