Trading Update

RNS Number : 2641U

Renewi PLC

23 October 2017

 

This announcement contains inside information

Renewi plc

("Renewi", the "Company" or, together with its subsidiaries, the "Group")

Trading Update

Renewi plc (LSE: RWI), the international waste-to-product business, today announces a positive trading update for the year ending 31 March 2018.

As announced on 27 September 2017, current trading in the financial year had been strong.  In the light of a particularly strong performance in September, the Board has reviewed the Group's trading momentum and prospects for the full financial year. As a result of this, the Board now expects the Group to deliver a result for the year ending 31 March 2018 which is significantly above its previous expectations.

As previously reported, the Commercial Division performed particularly strongly, with increased waste volumes driven by improving economic growth and construction market recovery.  Recyclate income also remained strong throughout the period. In addition, the Monostreams Division delivered a positive performance. The strong outperformance of the Commercial Division and Monostreams Division has more than offset the previously reported challenges at ATM in the Hazardous Waste Division and the Municipal Canadian business. Merger benefits, including cost synergies, margin benefits from internalised waste treatment and purchase price accounting adjustments have been better in the first half than management's original expectations. Reported earnings in the first half have also benefited from the relative weakness of Sterling compared with our GBP:EUR budgeted rate of 1.20.

Against this positive operating background and in preparation for the forthcoming interim results, the Board has reviewed the Group's trading momentum and prospects for the full year and now expects the Group to deliver a result for the year ending 31 March 2018 which is significantly above its previous expectations. The Board expects the Group's profits to be more strongly weighted towards the first half than usual because of the favourable market conditions in the seasonal construction market together with the outlook for moderating recyclate prices in the second half and reduced soil treatment volumes.

While the Group's trading momentum is positive, at this early stage the Board's expectations for the year ending 31 March 2019 remain unchanged.

Further details on the Group's first half performance, including divisional trading, and its current trading and prospects will be provided with the interim results on 9 November 2017.

For further information:

Brunswick Group	Renewi plc
[phone]	www.renewiplc.com [phone]
Matthew Dowe	Peter Dilnot Toby Woolrych

About Renewi plc

Renewi, created in 2017 by the merger of Shanks Group plc and Van Gansewinkel Groep B.V., is a leading waste-to-product business ideally positioned to be part of the solution to some of the main environmental problems facing society today: reducing waste, avoiding pollution, and preventing the unnecessary use of finite natural resources.

We are listed on the London Stock Exchange and are a constituent of the FTSE250 index. With over 8,000 employees across nine countries in Europe and North America, we have deep expertise and an extensive breadth of waste management products and services.

For us, waste is a state of mind, an opportunity. When we take away someone's waste, we then give it new life. We transform a wide range of used materials into useful products and raw materials for our customers, like recycled paper, metal, plastic and glass, woodchips, compost, energy, fuel, and other products.

In the process we protect the world from contamination, preserve finite natural resources, and enable customers to meet their sustainability goals. With our deep international expertise we also provide our customers with an extensive product range, combined with local service and attention.

Above all, our team is committed and passionate about our mission: waste no more. Renewi operates across five divisions:
 

•     Netherlands Commercial - Collecting, sorting, treating and recycling commercial and household waste in the Netherlands

•     Belgium Commercial - Collecting, sorting, treating and recycling commercial and household waste in Belgium

•     Hazardous Waste - Treating soil, water and packed chemical waste at our flagship ATM facility and conducting specialist industrial cleaning in the Netherlands

•     Monostreams - Managing a range of waste streams which focus on specific end markets such as glass, electronic goods, organics and minerals in Europe

•     Municipal - Operating long-term waste management contracts with local authorities in the UK and Canada

For more information, please visit: www.renewiplc.com 

Images are available to download at: www.renewiplc.com/imagelibrary

 

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