Last close As at 05/08/2026
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Market capitalisation
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Research: Industrials
Renewi has made a solid start to the year with no change to guidance. It is clearly well placed in the growing circular economy and exiting the UK Municipal business provides a simpler investment proposition. We believe the key for the shares will be progress towards management’s medium-term financial targets, in particular at least 5% organic growth and operating margins of 8–10% (FY24: 6.2%).
Renewi |
Trading supports unchanged full-year guidance |
Q1 trading update |
Industrial support services Sector |
6 August 2024 |
Share price performance
Business description
Analyst
Renewi is a research client of Edison Investment Research Limited |
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Renewi has made a solid start to the year with no change to guidance. It is clearly well placed in the growing circular economy and exiting the UK Municipal business provides a simpler investment proposition. We believe the key for the shares will be progress towards management’s medium-term financial targets, in particular at least 5% organic growth and operating margins of 8–10% (FY24: 6.2%).
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/23 |
1,704 |
105.2 |
89 |
0.0 |
8.5 |
N/A |
03/24 |
1,689 |
68.0 |
61 |
5.0 |
12.4 |
0.7 |
03/25e |
1,751 |
81.6 |
70 |
10.0 |
10.8 |
1.3 |
03/26e |
1,825 |
92.3 |
80 |
12.5 |
9.5 |
1.7 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Q1 revenue was €434.4m, up 3%, and EBIT was €22.3m, also up 3%, both based on ongoing businesses excluding UK Municipal, which is in the process of being disposed. Overall, Renewi produced a positive if mixed performance in some variable markets, while recyclate prices remained stable. The largest business, Commercial Waste, continued to experience mixed market conditions, with construction still soft in the Netherlands offset by actively pursuing smaller/mid-sized business and cost reduction also assisting in offsetting higher waste costs (transport and incinerations). Belgium margins were a little lower as volume growth has been behind expectations. Both businesses are benefiting from the SG&A Simplify cost programme, with the upside from the consolidation of management structures still to be realised. The Specialities division reporting strong growth in Coolrec (small electrical appliance recycling) and Maltha (glass recycling), while Mineralz & Water revenues were flat with growth in water treatment and soil offset by exiting low-margin business such as bottom ash treatment. Net debt increased (€368m to €431m) due to normal seasonality, along with timing for a large payable and a significant landfill purchase.
The UK Municipal disposal process remains on course for completion by the end of the calendar year with the key Competition and Markets Authority approval received.
Overall, Renewi has made a solid start to the year with further cost benefits and growth projects supporting management’s full-year guidance, albeit Q1 EBIT of €22.3m is clearly behind the run rate for our full-year forecast of €122.0m. There are no changes to the forecasts or valuation (DCF-based 849p and quoted peer-based 845p) set out in our previous note.
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Research: TMT
Tinexta’s H124 results highlighted a weaker revenue profile in Q2 than Q1, mainly due to what management believes are temporary effects, as well as the high level of seasonality in some of the individual businesses. The temporary effects include: 1) a slight delay intra-year to expected new revenues, with management reiterating its underlying growth expectations for the year; and 2) deferred growth from ABF Group by six months due to the political changes in France. The latter leads to a reduction in adjusted EBITDA estimates of 5%, but management continues to guide to a strong year of growth of over 20% including ABF Group.