PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process

Renewi

LN: RWI

Market Cap£600m

Last Close 750p

Renewi is a leading waste-to-product company in some of the world’s most advanced circular economies with operations primarily in the Netherlands, Belgium and the UK. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste.

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Investment summary

Renewi’s FY22 results reflect a strong performance across the group. The results came in ahead of FY21 comparatives and our FY22 forecasts. Management guided that it expects FY23 to be ahead of previous guidance. Driving this performance were price increases that outpaced inflation in waste and recyclates, coupled with volume gains (which are still below pre-COVID levels) and cost savings. There was a shift in tone, with the group now transitioning its focus on margin recovery to growth. Growth is expected to come from both organic and acquisitions. The group is targeting €60m in additional EBIT from circular innovations, continued recovery at ATM and the Renewi 2.0 programme. A further €100m in investment is planned to support this growth, and the acquisition of Paro, an Amsterdam-based commercial waste and recycling business, was announced for an enterprise value of €67m, funded from existing group facilities.

Y/E Mar
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2021A 1693.6 159.8 47.1 44.7 19.6 2.7
2022A 1869.2 183.9 105.3 97.9 8.9 3.7
2023E N/A N/A N/A N/A N/A N/A
2024E N/A N/A N/A N/A N/A N/A
Industry outlook

The focus on the circular economy to meet net zero targets is a key investment theme for the years ahead, and Renewi is an example of the growth and improving financial results being achieved from the circular economy tailwinds. Our forecasts are under review following the FY22 results.

Last updated on 01/07/2022
Content on Renewi
Renewi – Strong FY22, raising guidance for FY23
Industrials | research Flash note | 25 May 2022
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
Renewi – FY22 ends with raised guidance
Industrials | research Update | 25 March 2022
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
Renewi – Recyclate prices drive further FY22 upgrade
Industrials | research Update | 17 February 2022
PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process
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Share price graph
Balance sheet
Forecast net debt (€m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 12.1 13.8 32.7
Relative* 18.5 21.3 36.9
52-week high/low 840.0p/500.0p
*% relative to local index
Key management
Ben Verwaayen Chairman
Otto de Bont CEO
Toby Woolrych CFO