Shares in waste management firm Biffa rose on the FTSE 350 today even though it reported revenues and profits falling last year.
They closed trading 2.7 per cent higher at 300.5p after the group revealed its results were ahead of expectations and stated it was strongly positioned to recover when the Covid-19 pandemic dies down.
This was despite its statutory revenues declining by about 10 per cent to £1.04billion while it went from a pre-tax profit of £56.4million in the 2020 financial year to a £52.8million loss in the 12 months to March 26 this year.
Cleaning up: Biffa did see total volumes recover to end at 82 per cent of prior year levels
Losses at the top 100 UK restaurants doubled to £571 million in the year to the start of the lockdown last March, according to new research.
Accountancy group UHY Hacker Young said the losses are expected to worsen again in the coming months as restaurants have been forced to repeatedly shut their doors, leaving many struggling to survive.
Restaurants have become more reliant on home delivery services, but this can be a double-edged sword because of commissions of up to 35% plus VAT, said the report.
UHY Hacker Young predicted that a wave of restructuring is likely to continue in the restaurant sector to keep businesses afloat.
Restaurant losses doubled even before coronavirus pandemic
Many restaurants are struggling to survive in the face of Covid-19, but losses in the sector had doubled even before last March s first lockdown (Image: Getty Images)
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Losses at the top 100 UK restaurants doubled to £571 million in the year to the start of the lockdown last March, according to new research.
Losses at top 100 restaurant groups rocket 112 per cent to £571m
Losses at the top 100 UK restaurant groups increased 112 per cent to £517m last year, rising from reported losses of £269m at the end of last month.
According to UHY Hacker Young, the losses are expected to continue, as restaurants have been forced to shut again because of the latest coronavirus restrictions.
UK Hospitality, the trade association for the hospitality industry, has urged the government to do more to help the sector by extending the reduced 5 per cent rate of VAT on the sector until the end of 2021 to prevent a wave of redundancies. VAT is scheduled to revert back to 20 per cent at the end of March.
Financial losses at the UK s top 100 restaurant chains are expected to get worse after more than doubling last year, according to new findings.
Accountancy firm UHY Hacker Young said the groups losses soared from £269million in the year to March 2020 to £571million last year after strict Covid-19 restrictions caused widespread reductions to their footfall.
It adds that restaurant businesses are likely to experience many more restructurings in the coming months - especially through Company Voluntary Arrangements (CVA) - to allow them to continue operating.
UHY Hacker Young s Peter Kubik: The hospitality industry is on a knife edge – its survival is largely dependent on people feeling safe and returning to restaurants