23rd May 2019 10:05
LONDON (Alliance News) - Renewi PLC on Thursday cuts its dividend, after its annual loss widened due an increase in operating expenses, while revenue growth slowed due to challenges in the Hazardous Waste division.
The waste-to-product company reported a pretax loss of EUR89.0 million for the financial year to the end of March, compared to EUR52.8 million a year earlier, as administrative expenses jumped to EUR315.6 million from EUR283.3 million, with finance charges up to EUR45.2 million from EUR35.4 million.
Revenue, meanwhile, rose by 1% to EUR1.78 billion from EUR1.76 billion the year before.
Renewi said it saw an "encouraging" growth in its core Commercial division, where revenue was up 3% on the year earlier to EUR1.19 billion. The performance reflected the positive impact of strong price increases for inbound waste, which were introduced in January to offset lower recyclate income and increasing costs, especially in the disposal of residues.
Recyclates are the raw materials sent to waste recycling plants.
In the Hazardous Waste division, revenue dropped by 9% to EUR211 million due to the ongoing suspension of shipments of thermally treated soil by the Dutch regulators.
Meanwhile, the Monostreams division delivered revenue growth of 4% to EUR213 million following the simplification of the range of geographies served and products recycled.
Renewi saw a recovery in its Municipal unit, where revenue was 3% lower year-on-year at EUR195 million, as it progresses on the sale of its Canadian Municipal business.
Renewi declared a final dividend of 0.5 pence per share, taking a total payout for the year to 1.45p, less than half the 3.05p paid the year before.
"We have acted to address the group's short-term challenges and are confident that these will be resolved during the year. Our outlook for financial 2020 is unchanged," said Chief Executive Otto de Bont.
"We plan to simplify the organisation, portfolio and processes, focusing on markets and assets that enable us to consistently generate superior returns," added de Bont.
Renewi shares were trading 2.6% higher on Thursday morning at 37.30 pence each.
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