Renewi (LSE: RWI)

Last close As at 22/07/2024

GBP6.80

−1.00 (−0.15%)

Market capitalisation

GBP548m

Renewi is a leading waste-to-product company in some of the world’s most advanced circular economies, with operations primarily in the Netherlands and Belgium. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste.

Renewi has announced the sale of the UK Municipal business. This will require funding of €146m, but will improve future cash by €15–20m a year, remove a significant liability, assist group margin by c 0.5% and provide great focus for both investors and management. Management estimates the deal will leave net debt/EBITDA at c 2.9x, which will reduce by 0.4–0.5x pa. Completion is expected by the end of 2024.

Latest Insights

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Industrials | Update

Renewi — UK Municipal exit offers an inflection point

Industrials | Flash note

Renewi — Solid trading and better cash generation

Industrials | Update

Renewi — Softer construction market affecting profitability

Industrials | Update

Renewi — Recycling 2.0

Renewi_resized

Sector

Industrials

Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Annemieke den Otter

    CFO

  • Ben Verwaayen

    Chairman

  • Otto de Bont

    CEO

Balance Sheet

Forecast net debt (€m)

541.1

Forecast gearing ratio (%)

320

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (2.2) 19.7 33.6
Relative (2.3) 16.2 24.3
52 week high/low 734.0p/450.0p

Financials

Weaker commercial waste markets, particularly in the Netherlands construction sector, and softer recyclate prices affected profits in FY24, despite improvements in Mineralz & Water and ATM, hence PBT was down 35%. The company reinstated the dividend. Management is more confident looking forward, assisted by the stabilising of Netherlands and recyclate pricing, cost benefits from the Simplify programme and further improvements at ATM.

Y/E Mar Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2023A 1703.9 255.8 105.2 89.0 9.0 2.5
2024A 1689.2 235.5 68.0 61.0 13.2 2.7
2025E 1750.9 252.6 81.6 70.0 11.5 2.6
2026E 1825.4 280.7 92.3 79.0 10.2 2.3

Research

Renewi_resized

Update

Industrials

Renewi — Recycling 2.0

Update

Industrials

Renewi — A circular economy champion

Renewi_resized

Flash note

Industrials

Renewi — On track – a circular track

Update

Industrials

Renewi — Resilient platform to accelerate growth

Renewi_resized

Flash note

Industrials

Renewi — Trading ‘slightly ahead’ of consensus

Flash note

Industrials

Renewi — Reducing the liabilities

Flash note

Industrials

Renewi — Q323 update supports full-year forecasts

Update

Industrials

Renewi — Standing up to end-market pressures

Thematics

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

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Industrials

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