1st Oct 2019 10:19
(Alliance News) - Renewi PLC on Tuesday said trading in the first half of its financial year has aligned with board expectations and the shutdown of the AEB incinerator should not meaningfully hurt performance.
Shares in Renewi were up 3.6% at 31.30 pence in London in morning trade.
Renewi, a "waste-to-product business", will post results for the first half of its financial year on November 7. The firm's half-year ended September 30 and its full financial 2020 year ends March 31.
"Trading has been in line with the board's expectations. The Commercial division has continued to benefit from price increases and synergies which have more than offset cost inflation, lower paper prices and a modest slowdown in volumes," said Renewi.
Renewi also said the unplanned AEB incinerator shutdown in Amsterdam should "have little impact on the group's performance" as the firm has been able to contract "alternative incineration and landfill capacity for the remainder of the year". Moreover, AEB is liable to compensate Renewi for the costs incurred, and Renewi is currently "in the process of recovering" such costs.
Elsewhere, the company's Hazardous Waste division has conducted soil testing on stocks and is scaling up its new process for manufacturing building materials using soil. Testing has confirmed the current soil stock, derived from its ATM hazardous waste treatment plant in the Netherlands, contains no substances which prevent its use.
Renewi is therefore in talks to re-open the market for these soil-made materials. Product certification is expected by the end of Renewi's current financial year.
Renewi's Monostreams and Municipal divisions are likewise performing as expected and although a long-term contract with the Derby and Derbyshire councils has been terminates, a continuity services contract has been signed.
Thanks to a EUR75 million green retail bond in July and EUR25 million green EU private placement last December, Renewi currently has "significant long-term headroom on its borrowing facilities".
Renewi's annual expectations for its year to March are unchanged and its divisions are "on track". It is confident of increasing production at the ATM plant in 2020.
By Anna Farley; [email protected]
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