Last close As at 05/08/2026
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Market capitalisation
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Research: Industrials
Renewi has announced that trading in Q1 was in line with expectations. As a recycling business, the group is well placed to benefit from the European Green Deal and shift towards a circular economy, while the shares are trading on a rating more reflective of the legacy issues than the future opportunities.
Renewi |
On track – a circular track |
Q1 trading update |
Industrial support services |
13 July 2023 |
Share price performance
Business description
Analyst
Renewi is a research client of Edison Investment Research Limited |
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Renewi has announced that trading in Q1 was in line with expectations. As a recycling business, the group is well placed to benefit from the European Green Deal and shift towards a circular economy, while the shares are trading on a rating more reflective of the legacy issues than the future opportunities.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/22 |
1,869 |
105.3 |
98 |
0 |
6.1 |
N/A |
03/23 |
1,892 |
103.7 |
90 |
0 |
6.6 |
N/A |
03/24e |
1,925 |
92.4 |
81 |
5 |
7.3 |
0.8 |
03/25e |
2,007 |
104.0 |
92 |
10 |
6.5 |
1.7 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Group revenue and operating profit in the first three months of the year were lower than previously, reflecting the decline in recyclate prices (primarily plastic, paper and ferrous), which peaked in the previous year’s first quarter but remain stable at levels seen in the second half of FY23. Around 65% of recyclate exposure is hedged through dynamic pricing, while cost actions from Renewi 2.0 are offsetting inflationary pressures. We expect margins in the key Commercial division to be stable relative to H223. Commercial division volumes have stabilised in Belgium, while the Netherlands continues to see some pressure on volume driven by a weaker construction sector. Specialities performed above expectations, which is encouraging given the strong performance in FY23 and that the division includes the volatile PPP contracts in the UK. Mineralz & Water is progressing on the transition to the production of construction materials which is key to commercialisation of the soil recycling facility, but the company has not commented on further progress on reducing the legacy treated soil inventory of 600kt, which is expected to be largely disposed of in the current year.
Core net debt increased by €18m in the quarter to €388m, reflecting investment in growth programmes, particularly the advanced sorting lines (total capex of €60m), and is in line with expectations for net debt to increase to c €430m in the year, primarily to fund development programmes.
The company has announced plans to hold a capital markets day on 4 October.
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Research: Industrials
Accsys’s FY23 results were slightly better than expected, with mainly higher pricing making the difference. Revenue growth of 34% y-o-y was driven by volume growth of 6% and higher average sales prices. EBITDA was +120% y-o-y and clearly benefited from higher prices, more than offsetting the input pressure. There was no further news on the construction of the Accoya plant in the United States (on track and planned to be operational mid-2024) or the Tricoya plant in Hull (construction is still on hold but management is a firm believer in its value proposition). We rolled over our discounted cash flow (DCF) by one year, now pointing at a value of €1.25 per share (previously €1.15).