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

Renewi

LN: RWI

£352.1m market cap

44p 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

A Q3 update reaffirmed Renewi’s existing FY21 expectations, with an underlying mix modestly more in favour of Commercial activities – which improved slightly y-o-y – offsetting a slower than planned ramp up of thermally treated soil shipments. Cash generation appears to have been very good in Q3 also and – notwithstanding some outflow in Q4 – the year-end net debt position could well be below our current projection (of pre IFRS 16 core net debt of c £424m). The reassuring update confirmed the resilience of waste stream activities with full year and strategic aspirations maintained.

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 8.4 4.6
2020A 1775.4 167.1 54.3 5.4 9.3 2.4
2021E 1587.1 133.3 22.2 2.0 25.1 2.3
2022E 1691.3 159.0 46.4 4.3 11.7 2.8
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 04/03/2021
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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 6.0 25.0 20.6
Relative* 3.6 22.0 20.7
52-week high/low 45.1p/18.1p
*% relative to local index
Key management
Ben Verwaayen Chairman
Otto de Bont CEO
Toby Woolrych CFO

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