(Sharecast News) - Biffa reported a 10.4% decline in net revenue in its full-year results on Tuesday, to £988.1m, as its EBITDA slid 20.6% to £138.2m, although it still ended a tough year ahead of its expectations.
The FTSE 250 waste management company said its operating profit was 51.2% lower year-on-year for the 52 weeks to 26 March at £44.2m, while its operating profit margin camne in at 4.2% for the year, down from 7.8% in the 2020 financial year.
Its profit before tax was down 59.6% at £29m, as the firm's free cash flow was £33.2m, down 38.1% from the prior 12 months.
Reported net debt stood at £456.8m at year-end on 26 March, widening from £425.5m a year earlier, while the company said its reported net debt-to-EBITDA ratio grew to 3.3x, from 2.4x as it began the financial year.
Earnings per share plunged 66.8% from the previous year, ending the 2021 financial year at 7.7p, as the board said it was declaring nil dividend for the year due to the impact of the Covid-19 pandemic.
Operationally, Biffa said its collections division was "significantly" impacted in the first half due to temporary closures of many of its industrial and commercial customers, with first quarter volumes dropping to about 50% of the prior year, followed by a "solid" recovery across the rest of the year, with full-year volumes at 82% of the prior year.
The resources and energy division was "particularly impacted" in its inerts business, which also saw volumes drop to about 50% of prior-year levels in the first quarter.
Volumes there subsequently recovered to around 80% of the prior year, while the board said other short-term pandemic-related impacts included reduced commercial food waste volumes and depressed plastic prices.
Biffa said it was "strongly positioned" for the post-pandemic recovery, holding leadership positions in its core markets as well as a "well-developed" investment programme.
It added that its outlook was underpinned by "encouraging" recent trading performance, with its full-year expectations, excluding the impact of the Viridor transaction, unchanged.
"We were able to protect our people and continue to provide the essential services on which society depends, while taking decisive action to strengthen the finances of the group and continue to invest for the future," said chief executive officer Michael Topham.
"It has been a year none of us want to repeat but certainly one which showed us at our best.
"We are pleased to have been able to end the financial year with results ahead of our expectations."
Topham said the company was "strongly positioned" for the post-pandemic recovery, with leadership positions in its core markets, a "well-developed" investment programme, and "exciting" growth opportunities, 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."
At 0815 BST, shares in Biffa were up 7.86% at 315.5p.
27 Jan 2023 08:11
IN BRIEF: Biffa GBP1.3 billion takeover by ECP V is official
Biffa PLC - High Wycombe, England-based sustainable waste management company - Says its GBP1.3 billion takeover by ECP V LLC is complete. Biffa shares are cancelled from trading on the Main Market of the London Stock Exchange. ECP is an investor in the fields of energy transition, renewables and infrastructure who, via Bears Bidco Ltd, acquired Biffa.
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