UK markets closed
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • FTSE 250

    20,910.37
    -287.75 (-1.36%)
     
  • AIM

    1,183.25
    -8.61 (-0.72%)
     
  • GBP/EUR

    1.1537
    +0.0039 (+0.34%)
     
  • GBP/USD

    1.3921
    -0.0091 (-0.65%)
     
  • BTC-GBP

    33,769.90
    +241.29 (+0.72%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • DOW

    30,932.37
    -469.64 (-1.50%)
     
  • CRUDE OIL

    61.66
    -1.87 (-2.94%)
     
  • GOLD FUTURES

    1,733.00
    -42.40 (-2.39%)
     
  • NIKKEI 225

    28,966.01
    -1,202.26 (-3.99%)
     
  • HANG SENG

    28,980.21
    -1,093.96 (-3.64%)
     
  • DAX

    13,786.29
    -93.04 (-0.67%)
     
  • CAC 40

    5,703.22
    -80.67 (-1.39%)
     

Renewi plc: Third Quarter Trading update

·4-min read

Renewi plc (RWI)
01-Feb-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

This announcement contains inside information

 

 

1 February 2021

 

Renewi plc

 

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

 

Third Quarter Trading update

 

Renewi plc (LSE: RWI), the leading international waste-to-product business, announces its trading update for the period from 1 October 2020 to 31 December 2020 ("third quarter" or the "period").

 

Highlights

 

 

Trading and cash performance

 

The Commercial Waste Division maintained full operational capacity in the period. Volumes fell back marginally as new lockdowns were introduced in November, with the overall impact on volumes in December less than half of that seen in the first lockdown in March/April 2020. Volumes in the Netherlands were 98% of prior year in the third quarter vs 97% in the second quarter and 94% in the first quarter.  Ongoing strong construction and bulky waste activity offset the expected weakness in hospitality and retail.  Volumes in Belgium were 92% of prior year in the third quarter vs 91% in the second quarter and 76% in the first quarter. Cost actions remain ongoing and recyclate prices were higher than anticipated in the third quarter, particularly paper.

 

Mineralz & Water Division performed as expected across most business lines. The ramp-up of production of treatment of thermal soil in the final quarter will likely be lower than originally planned as we still await final sign-off of anticipated outlets for thermally cleaned soil (TGG) and as the new storage silos for filler are installed and commissioned during February. This is not expected to have a material impact on the three-year recovery plan for ATM, including the accelerating transition to the sale of upcycled filler, sand and gravel, in place of TGG.

 

Specialities Division performed in line with expectations.

 

Cash performance continued to be strong, benefitting from robust working capital management which is expected to unwind partly at the year end.  Core net debt (excluding IFRS 16 lease liabilities) at the end of December was €323m, representing a reduction of €58m since 30 September 2020 and leverage has reduced to 2.2x, with significant headroom against the Covid-adjusted covenant of 6.0x. Days sales outstanding (DSO) remained unchanged on prior year and levels of customer insolvency continued to be low, reflecting ongoing government support for affected business sectors.  We continue to expect a working capital outflow going forward, including placement of ATM TGG and an increase in DSO.

 

 

 

Outlook

 

Overall trading for the Group in the period was robust and the Board's expectations for the year ending 31 March 2021 remain unchanged.

 

Longer term, whilst the speed and extent of economic recovery will influence our performance, waste volumes have historically been resilient through cycles and the transition to increased recycling will continue to support our business model. The sustainability agenda and the potential for a "green recovery" supported by the EU and national governments are expected to present attractive opportunities for Renewi to convert waste into a wider range of high-quality secondary materials. We remain confident our three strategic growth initiatives - recovery of earnings at ATM, the Renewi 2.0 programme and our innovation pipeline - will deliver significant additional earnings over the next three years and beyond.

 

 

 

 

For further information:

 

 

FTI Consulting

+44 20 3727 1545

Susanne Yule

Renewi plc

+44 7976 321 540

Adam Richford, Head of IR

+44 20 3727 1340

Richard Mountain

+44 7773 813 180

Michelle James, Communications

 

 

 

 

 

www.renewiplc.com

About Renewi

 

Renewi is a leading waste to product company that gives new life to used materials every day. We have around 7,000 employees working at 174 operating sites across Europe. Our extensive operational network means we are always close to our customers.

 

For Renewi, waste is a state of mind, and an opportunity. Our many years of knowledge and experience, combined with a broad range of services, allow us to offer sustainable, practical recycling solutions. We use innovation and the latest technology to turn waste into useful materials such as paper, metal, plastic, glass, wood, building materials, compost and energy. In other words, we turn today's waste into tomorrow's raw materials.  The result of our work is less waste and contamination, a smarter use of scarce raw materials, and a reduction in carbon emissions. This means that we are contributing towards a cleaner, circular world in which we "waste no more".

 

Visit our website for more information: www.renewiplc.com.


ISIN:

GB0007995243

Category Code:

TST

TIDM:

RWI

LEI Code:

213800CNEIDZBL17KU22

OAM Categories:

3.1. Additional regulated information required to be disclosed under the laws of a Member State

Sequence No.:

92607

EQS News ID:

1164483


 

End of Announcement

EQS News Service

show this
show this