BIFF.L Share News (BIFF)

(Sharecast News) - Waste management company Biffa reinstated its dividend on Thursday and backed full-year expectations as it said adjusted operating profit returned to pre-pandemic levels in the first half.
First-half adjusted operating profit came in at £45.4m from £9.7m in the same period a year ago, with revenue up 37.9% at £632.8m. The company declared an interim dividend of 2.20p a share, having not paid one a year earlier.

Biffa said trading recovered well in the first half following the easing of lockdown restrictions. In the first quarter, I&C volumes recovered to 97% of the same period two years prior, and following further recovery in the second quarter, the group exited the first half at 103% of levels experienced two years ago.

Biffa said it benefitted from higher commodity and energy prices, albeit the impact has been limited.

The company said that like most businesses, it has been affected by supply chain issues, including shortages of HGV drivers, vehicles, fuel and waste containers. Although it has seen signs of stabilisation in recent weeks, Biffa said it will continue to monitor the situation closely.

Chief executive Michael Topham said: "During the first half of the year we have successfully restored Biffa's adjusted operating profit to FY20 levels, managed the impact of the supply chain challenges that are affecting the entire economy, and continued to make good progress in delivering our strategic priorities.

"The rebound in business performance, with volumes and pricing across most areas of the business at or above FY20 levels, is testament to the resilient characteristics of our business model and the commitment of our team. Whilst like all businesses we are currently experiencing some cost inflation, most of our business has a level of pricing flexibility meaning we are well placed to mitigate these pressures.

"We remain pleased with Biffa's performance and prospects and our expectations for the full year remain unchanged. As a result, we are pleased to have reintroduced the payment of a progressive dividend."