The waste management firm said underlying earnings (EBITDA) remain positive, with a modest monthly cash burn, thanks to cost-saving measures such as furloughing staff and deferring tax payments.
Revenues dropped 30% during the lockdown, with the industrial & commercial (I&C) division particularly affected by lack in demand, pushing revenues down 50%.
Landfill services were also halved due to reduced volumes, while municipal services were still in demand but had to operate with fewer staff.
All divisions are now starting to recover, however I&C is still 40% below pre-coronavirus levels and is expected to reach 80-90% by the end of next March.
Landfill gas revenues are expected to see a “marked decline” due to lower volumes and electricity prices, however the recycling business is expected to grow.
In the year to March 27, revenue rose 7% to £1.1bn for underlying profit before tax up 12% to £71mln.
Downgrade to 'hold' but target price goes up
Peel Hunt downgraded to 'hold' from 'add', raising the target price to 260p from 240p.
"We see Biffa as now appropriately valued, with upside from bolt-on acquisition potential offset by the share price being within 10% of all-time high," analysts commented.
Shares dropped 5% to 250.5p on Friday morning.
--Adds analyst's comment, shares--