Waste management company Biffa says that during August its revenues recovered to 90% of FY20 but its plastics side is being impacted by price pressures.
In a trading update published today (9 September), Biffa said revenues in August were around 10% lower than they were during the same month last year, with industrial and commercial (I&C) at 87% of last year’s levels and landfill at 86%.
The group said trading had remained slightly ahead of the group’s base case scenario, which was developed at the outset of the Covid-19 pandemic.
Biffa said: “Whilst the outlook for the rest of the year is dependent on the pace and shape of the economic recovery, based on the recovery to date, the Board’s expectations for the full year remain unchanged.”
Underlying profit contribution is also continuing to improve month on month, Biffa said, and the company expects to cease furloughing staff at the end of September.
Ongoing pressure on plastic prices will impact trading at the Seaham plant until it starts to produce food grade recycled materials in April 2021, Biffa said. The plant was officially opened on 29 January (see letsrecycle.com story).
The company noted its established HDPE operations had been largely unaffected by price weaknesses.
Biffa’s collections division has just completed its first I&C business acquisition of the year, the company says. It says it has acquired a trade waste business which had pre-pandemic run rate revenues of around £4 million.
On Monday letsrecycle.com reported Biffa had bought the compaction services business of Derbyshire-based metal and waste recycling specialist Ward (see letsrecycle.com story).
Biffa says active negotiations continue on several other deals and “the pipeline is expanding as expected”.
Biffa says it continues to make good progress on the Protos energy from waste (EfW) project with the EPC and funding aspects of the transaction now well advanced.