Renewi

Investment summary

A positive Q4 trading update from Renewi pointed to a management FY21 (to March) EBIT expectation of €68m versus an existing consensus in the mid fifties (€m). Our estimates are now in line with this, after increasing the Commercial division contribution. We have made no changes to other years at this stage – though there should be downward pressure on finance costs at least given the cash performance – earnings still show some progression beyond FY21. Renewi has a well explained strategy for increasing profitability over the next three years and remains very well positioned in its markets which are at the centre of the circular economy. FY21 results are scheduled for 27 May.