Biffa reinstates dividend but broker downgrade triggers shares slide

9.24%

MILLIE TURNER BIFFA reinstated a dividend yesterday after its revenue climbed nearly 40 per cent in the past six months.

However, the results were met with shares diving nearly 10 per cent.

The waste management company posted a dividend of 2.20p after securing a revenue of £671.2m in the six months to 24 September.

The firm swung from an operating profit loss of £45m a year prior, which recovered 14 per cent to a loss of £16.7m. On what may have sparked investors to ditch the stock, senior investment analyst at Hargreaves Lansdown Susannah Streeter explained that although Biffa has made good progress on its recovery, it is not "immune" to supply chain woes or the HGV driver shortage.

Biffa's acquisition of surplus goods redistributor Company Shop, which saw disappointing footfall, tipped the shares slip, Streeter added.

"And a broker downgrade intensified the downward slide."

(c) 2021 City A.M., source Newspaper