Biffa eyes ‘steady recovery’ as revenues start to come back
Waste management firm Biffa said it was seeing a “steady recovery” in demand for its services, with revenues last month recovering to 83 per cent of pre-coronavirus levels.
In a trading update, the FTSE 250 firm said that its business had performed “slightly” better than expected over the last three months.
However, it warned that its outlook for the rest of the year would be “dependent on how quickly the remaining restrictions are eased and the pace and shape of the economic recovery”.
Shares in Biffa rose 0.3 per cent in the first hour of trading.
The company said that it had now recommenced its investment programme following a £100m equity raise in June.
However, Sky News reported that Biffa could come under pressure from shareholders over the decision when it seeks their approval at today’s annual general meeting.
The Institutional Shareholder Services (ISS) and the Investment Association’s IVIS voting advisory service have both told clients not to support the resolutions.
In a client note, ISS wrote that Biffa “used the authorities approved at the previous AGM in a manner inconsistent with its stated commitments”.
“While it is recognised that some companies may need to expeditiously access emergency funds during the current health crisis, it is not clear that the situation at Biffa warranted a circumvention of shareholders’ pre-emption rights, as it appears that there was sufficient liquidity to allow for a more equitable process to be run.”
More to follow.