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

Renewi

LN: RWI

£343.3m market cap

42.9p last close

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

Investment summary

H121 ended strongly for Renewi, recovering from earlier COVID-19 impacts that turned out to be less than management had previously anticipated. Commercial volumes recovered well in Q2 versus Q1, Mineralz & Water (M&W) made a small profit, and Specialties broke even overall. Core net debt was €381m at the period end including positive underlying cash inflow of c €10–15m. No H121 dividend was declared, as expected. We have moved earnings estimates ahead in all three forecast years, more than doubling for FY21 and with increases of 6–10% in the following two years.

Y/E Mar
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 1780.7 179.7 63.1 6.0 8.0 4.4
2020A 1775.4 167.1 54.3 5.4 8.9 2.3
2021E 1587.1 133.3 22.2 2.0 23.9 2.2
2022E 1691.3 159.0 46.4 4.3 11.1 2.6
Industry outlook

The Dutch waste market, accounting for the largest single business within Renewi, was growing as the economy recovered from cyclical lows ahead of the coronavirus outbreak.

Last updated on 14/01/2021
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 24.2 89.4 21.2
Relative* 19.0 64.7 33.5
52-week high/low 45.0p/18.1p
*% relative to local index
Key management
Ben Verwaayen Chairman
Otto de Bont CEO
Toby Woolrych CFO

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