Biffa upgrades FY expectations after stronger-than-expected Q1
By Michele Maatouk
Date: Monday 19 Jul 2021
(Sharecast News) - Waste management firm Biffa lifted its full-year earnings expectations on Monday following better-than-expected trading in the first three months of the year.
In an update ahead of its annual meeting, the group said trading in the first three months of FY22 had been "well ahead" of its expectations thanks to the faster-than-expected recovery of the UK economy since Covid-19 restrictions began to ease.
Group revenues in the first quarter were up 10% on the equivalent period two years ago and recycled commodity prices are at their highest levels since 2018.
"The outlook for the rest of the year is inevitably linked to the ongoing strength of the UK economy. However, provided the reopening of the economy continues on its current pathway, the board's expectations are that the group's full year adjusted earnings before interest and tax will be approximately 10% above current market consensus ," it said. Consensus expectations are for adjusted EBIT of £87.6m.
Biffa said Industrial and Commercial (I&C) volumes in July - adjusted for acquisitions - are now back to the same levels as July 2019.
"The group is facing some near-term challenges caused by the national shortage of HGV drivers which is now being exacerbated by Covid-19 related absences, together with other widely reported supply chain issues, however these are being carefully managed."
At 1045 BST, the shares were up 2% at 333p.
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