(Alliance News) - Biffa PLC decided against making a final payout, as the waste management firm on Friday said it is saving cash due to the Covid-19 pandemic which has brought "unprecedented challenges".
The decision was made despite the FTSE 250 company registering a 6.6% revenue rise to GBP1.16 billion in financial year that ended March 27, from GBP1.09 billion the year before.
Pretax profit more than doubled to GBP56.4 million from GBP21.5 million. Also helping the profit jump was a reduction in "other items", these costs fell by about two thirds to GBP15.3 million from GBP42.5 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 & Commercial Collections and landfill operations businesses," the company explained.
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 & 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."
Shares in the company were 4.7% lower at 250.28p each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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