logo-loader
viewRenewi

Renewi sees lower hit than expected on quarterly earnings

Volumes have picked up since the start of the pandemic but further recovery depends on how restrictions continue to be eased

Renewi - Renewi sees lower hit than expected on quarterly earnings

Renewi PLC (LON:RWI) said the hit on earnings for the three months to June 30 was €12mln, against the €20mln previously forecast.

Volumes improved steadily during the quarter, following the initial drop in March as lockdowns were implemented, in both the Netherlands and Belgium commercial waste divisions.

READ: Renewi cuts costs as waste volumes hit by coronavirus lockdown

The waste-to-product business said further recovery depends on how restrictions continue to be eased, including in specific sectors such as hospitality, and how the economy will pick up.

The firm saved €10mln in the quarter thanks to cost-cutting measures, and expects to save a total of €60mln over the year.

Core net debt as at June 30 was €413mln, down from €457mln at the end of March, while the company benefits from €50mln worth of tax being delayed to the next quarter.

"We think that this is a good step in a direction that can take the share price substantially above our target price as the profitability of the business re-establishes," analysts at house broker Peel Hunt commented.

Shares jumped 7% to 27.7p on Tuesday morning.

Quick facts: Renewi

Price: 23.8 GBX

LSE:RWI
Market: LSE
Market Cap: £190.43 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Smart Metering Systems boss expects to be at the forefront of UK's zero...

Smart Metering Systems PLC's (LON:SMS) chief executive Alan Foy says it has £76mln indexed linked annualised recurring revenues on the books with at least an additional £40mln in waiting when it converts its minimum secured order book of 2mln to smart meters. Foy explains that the company gets...

16 hours ago

2 min read