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



£251.6m market cap

31.45p last close

Renewi is a waste-to-product company with operations primarily in the UK, the Netherlands and Belgium, and activities spanning the collection, processing and resale of industrial, hazardous and municipal waste.

Investment summary

The previously flagged intention to sell Reym has crystallised through the announced disposal to REMONDIS Group for an EV of €64m (or 5.4x EBITDA). This move modestly dilutes our earnings estimates, further reduces net debt and reinforces Renewi’s waste-to-product recycling credentials. Gearing levels may still be high for risk-averse investors currently but the trend is clearly downwards. P/E multiples remain firmly in single digits currently and our estimates show a yield crossover in FY21.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 1760.3 176.3 63.0 5.9 5.3 1.8
2019A 1780.7 179.7 63.1 6.0 5.2 2.9
2020E 1703.5 164.4 47.4 4.5 7.0 1.9
2021E 1758.3 183.8 69.0 6.5 4.8 1.5
Last updated on 13/09/2019
Industry outlook

The Dutch waste market, accounting for the largest single business within Renewi, has returned to growth as the economy has recovered, boosted in particular by stronger construction activity.

Last updated on 13/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual 3.5 (4.4) (50.2)
Relative* 1.1 (5.1) (50.6)
52-week high/low 63.6p/21.9p
*% relative to local index
Key management
Colin Matthews Chairman
Otto de Bont CEO
Toby Woolrych CFO

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