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

Renewi

LN: RWI

£163.2m market cap

20.4p 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

The developing COVID-19 pandemic had a small effect on reported profitability at the end of FY20 and the Q1 update provided more detail on how this has played out in FY21 to date. Management assesses the EBIT impact to have been c €12m thus far, which is below the expected €20m previously flagged. (The high-level divisional updates are similar to those stated in May; implicitly volumes in Commercial Netherlands in particular have probably been stronger than expected.) Moreover, net debt adjusted for timing benefits from government support schemes was effectively unchanged from the year end – indicating a neutral underlying net cash flow performance.

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 3.8 2.1
2020A 1775.4 167.1 54.3 5.4 4.2 1.1
2021E 1532.9 122.5 6.6 0.6 37.7 1.6
2022E 1691.3 159.1 42.2 3.9 5.8 1.1
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 17/09/2020
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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 (16.7) (28.9) (33.4)
Relative* (15.9) (27.2) (20.7)
52-week high/low 45.0p/18.1p
*% relative to local index
Key management
Colin Matthews Chairman
Otto de Bont CEO
Toby Woolrych CFO

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