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.
Reporting in euros for the first time, Renewi’s H119 results showed a strong turnaround in Municipal performance, a similar Commercial EBIT outturn y-o-y offset by flagged permit issues at ATM in the Hazardous division and mixed trading among Monostreams operating companies. The cash flow and period end net debt positions were better than management’s earlier expectations and the interim dividend was maintained. In terms of outlook, there are some uncertainties (eg ATM’s trading position, the commissioning of a new UK Municipal facility and possible Brexit-related cross-border flows), but an intended disposal of two businesses (Reym and Municipal – Canada) will simplify the organisational structure. We reduced our earnings estimates by 23%, 16% and 13% for FY19-FY21 inclusive, respectively. Otto de Bont, previously MD at Netherlands Commercial, is to step into the group CEO role in April 2019 following the intended departure of Peter Dilnot. A 30 January trading update reiterated existing guidance for FY19 results.
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.