Last close As at 05/08/2026
GBP8.68
▲ 0.09 (0.01%)
Market capitalisation
—
Research: Industrials
Renewi is a leader in the circular economy with a recycling rate of more than 68% which, along with ever-tightening legislation, provides a positive long-term operating platform. The reassuring trading update therefore suggests an attractive entry point at the current valuation.
Renewi |
Trading ‘slightly ahead’ of consensus |
Year-end update |
Industrial support services |
4 April 2023 |
Share price performance
Business description
Analysts
Renewi is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||
Renewi is a leader in the circular economy with a recycling rate of more than 68% which, along with ever-tightening legislation, provides a positive long-term operating platform. The reassuring trading update therefore suggests an attractive entry point at the current valuation.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/21 |
1,693.6 |
47.4 |
45.0 |
0.0 |
15.3 |
N/A |
03/22 |
1,869.2 |
105.3 |
98.0 |
0.0 |
7.0 |
N/A |
03/23e |
1,898.5 |
97.0 |
86.0 |
0.0 |
8.0 |
N/A |
03/24e |
1,958.9 |
93.0 |
84.0 |
5.0 |
8.2 |
0.7 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Commercial Waste Division volumes showed a slight recovery in the Netherlands (particularly soft in H1) and Belgium declines are moderating. Management action and pricing continue to offset cost increases, and recylclate prices have now stabilised, having reduced from peak levels seen at the start of the year. The Mineralz & Water Division’s strong volumes continued, while TGG’s turnaround through certification and offtake of remaining stock continues to make progress. In the Specialities Division, Coolrec (electronic and electrical waste) and Maltha (glass) continue to perform well. As a result, trading is ‘slightly ahead of consensus’. We estimate FY23 revenue and EBIT of €1.9bn and €128.4m respectively versus consensus of €1.9bn and €127m; our numbers are unchanged. Full year results are due on 25 May.
In terms of additional exceptional items, certain UK municipal public private partnership (PPP) contracts will require additional onerous contract provisions of around €20m, due primarily to inflationary increases in costs and lower volumes. These will be largely offset by a €15m provision release following the positive outcome of the EU state aid investigation of Walloon landfills.
Net core debt (ex-leases and PPP debt) is estimated at €370m or 1.9x EBITDA.
Stabilisation of trading in Q4 should provide a solid start to trading for FY24. This will be augmented by project income, in particular the Ghent advanced sorting facility currently being commissioned, with two other facilities, the Puurs and Acht sites, also developing to plan.
|
|
Research: Financials
Bovemij, the unlisted car insurance company in which PB Holding has a 5.3% stake, reported an FY22 net loss of €14.4m, compared to a net profit of €46.6m in FY21. Bovemij’s results will not directly affect PB Holding’s FY22 results, which will be reported on 28 April. However, as Bovemij will not pay out a dividend in 2023, there will be no income from the participation in FY23. This should not lead to liquidity issues given the very low operational costs and cash position of the holding. At the end of FY22, PB Holding’s stake in Bovemij had a book value of €3.38 per share.