Renewi (RWI); trading update: on track to deliver committed €30m cost synergies for the year

Published on 28-09-2018 07:47:14

RWI has reported its pre-closing update for the six months ending 30 September 2018 ahead of its interim results on 8 November 2018. The trading is in line with management’s expectations, with merger integration projects progressing well. RWI remains on track to deliver the committed €30m cost synergies for the year ending 31 March 2019.

For the Commercial division, pricing of the inbound waste has been strong with price increases successfully implemented earlier in the year. The Hazardous Waste and Monostreams divisions have performed in line with management’s expectations, with the exception to two Dutch glass reprocessing sites that saw operational challenges and weak powder markets. The Municipal division has performed ahead of expectations in the UK and Canada, with profitable sale of EBG facility in Cumbernauld and scheduled exit from Dumfries and Galloway operating contract. The ATM division’s prospects are positive given the demand for secondary products despite the Dutch regulators temporarily suspending permits for use of thermally treated soil.

The company is positioned as a market leader in Benelux with government policy and business strategy focussed on increasing recycling and use of secondary materials. RWI is assessing the potential for securing additional synergies above the committed annual €40m target in period post FY20, following the successful initial phases of merger integration. The board expects RWI to deliver full year results in line with its expectations, assuming ATM resumes full soil production by the end of October 2018.

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