7th Nov 2019 11:18
(Alliance News) - Renewi PLC on Thursday maintained its outlook for its current financial year despite swinging to a loss in the first half.
The waste-to-product business swung to a pretax loss of EUR17.8 million in the six months to the end of September compared to EUR21.8 million profit it reported a year ago, as administrative expenses jumped 19% to EUR148.8 million. In addition, finance charges were higher by a third, at EUR23.6 million versus EUR17.7 million the year before.
Renewi said IFRS 16, a new reporting standard, has had a "material impact" on reported results.
The company declared an interim payout of 0.45p per share, down from 0.95p paid a year ago, reflecting a previously announced intention for a total dividend of 1.45p for financial 2020.
Renewi's revenue rose 2.8% to EUR915.7 million from EUR890.6 million year-on-year.
During the first half, the company has made progress in strengthening its capital structure, simplifying the portfolio, and addressing areas of risk, it said.
"Looking forward, our outlook for the current year is unchanged. We remain focused on cash generation and driving down leverage over time," said Chief Executive Otto de Bont.
He added: "While the near-term macroeconomic environment has weakened, the growing circular economy is expected to generate significant opportunities for sustainable growth over the long term."
Renewi shares were trading 0.4% lower in London on Thursday at 29.84 pence each.
By Evelina Grecenko; [email protected]
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