20th Jan 2020 09:26
(Alliance News) - Renewi PLC on Monday said it remains confident that its full-year results will be in line with expectations as it published an update on its performance.
The waste-to-products business also said it has applied for a secondary Euronext Amsterdam listing effective from January 30. It said will not place any new shares in connection with its application for a secondary listing on Euronext and will remain listed on the premium segment of the official list in London.
Renewi said that for the period starting October 1 to January 20, the business performed in line with expectations.
The hazardous waste division traded slightly above expectations following the lift of the ban on thermally treated soil by regulators in the Netherlands. As a result, it expects its Afvalstoffen Terminal Moerdijk hazardous waste treatment plant to resume production as local permits for the use of the treated soil are granted, and as demand and capacity increase for its new secondary building materials using the treated soil.
Renewi was formed from the reverse takeover of Dutch firm Van Gansewinkel Groep by by the UK's Shanks Group in 2017.
The company said its mono-streams and municipal divisions performed in line with expectations.
Renewi said its commercial division traded in line with expectations as it reported lower volumes of construction & demolition waste. It also said it has continued to increase prices to waste producers to address low recyclate prices.
Additionally, it said the AEB incinerator in Amsterdam has returned to full operation and all outstanding claims have been settled, resulting in a reversal of the EUR3 million provision taken at the half-year stage.
In January 2018, Renewi extended its partnership with Dutch energy-from-waste firm AEB by signing an 10-year offtake contract to supply refuse-derived fuel to AEB’s Amsterdam facility.
Renewi added that Brexit and the new Dutch tax on the import of burnable waste have had an impact on its contract with East London Waste Authority. The company said that these developments will result in it recording a EUR25.5 million one-off charge in its annual results with EUR10 million going to impair assets and EUR15.5 million as an onerous contract provision that will be incurred over the next four years.
"These events will increase the off-take costs of our ELWA contract by over EUR5 million per annum until new outlets can be found. The impact of Brexit following the transition period is also expected to add up to EUR1 million per annum in haulage and tariff costs.
Looking ahead, the Renewi said it remains confident it will deliver trading results for the full financial year ending March 31 in line with expectations.
Renewi shares were trading 4.6% lower at 34.95 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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