(Sharecast News) - Biffa said its expectations for annual results were unchanged despite the second Covid-19 lockdown as the waste management company reported a statutory loss for the first half.
The FTSE 250 company swung to a £45m operating loss in the six months to the end of September from a £33.9m profit a year earlier as revenue fell 18% to £482.5m. Underlying pretax profit dropped to £1.2m from £29.7m.
The statutory loss was caused by a combination of falling revenue and a string of asset impairments and contract provisions triggered by the Covid-19 crisis.
Biffa's first quarter coincided with the peak of the UK's first Covid-19 lockdown. The company cancelled its dividend and raised £100m to get through the crisis as its business was hit.
The company said trading recovered well in the second quarter as net revenue rose to £256.3m from £202.5m in the first quarter. It has spent £40m on acquisitions since June and is planning more than £40m of further spending on green infrastructure.
Michael Topham, Biffa's chief executive, said he was cautious about the outlook as England entered a second Covid-19 lockdown that is due to last at least a month.
"Nevertheless, having successfully navigated the first lockdown, and due to the underlying strength of the group's performance over recent months, at this stage, our expectations for the full year remain unchanged," Topham said.
Biffa shares rose 3.6% to 228.5p at 10:01 GMT.
4 Mar 2020 09:10
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