4th Jun 2020 10:20
(Alliance News) - Renewi PLC on Thursday said it is "well-placed" to overcome the challenges presented by the coronavirus pandemic as its loss narrowed in its most recently ended financial year.
The Milton Keynes, England-headquartered waste management company reported a narrowed pretax loss for the year to the end of March to EUR59.4 million from EUR89.0 million, as administrative expenses were reduced to EUR263.8 million from EUR315.6 million.
Revenue, meanwhile, remained broadly flat year-on-year, at EUR1.78 billion.
Renewi confirmed no final dividend will be paid due to Covid-19, compared to 0.5 pence a year before, resulting in a total dividend for financial 2020 of 0.45 pence per share, down from 1.45p in financial 2019. For financial 2018, Renewi had paid out 3.05p.
Renewi had announced its intention to pay no final dividend back in March.
Going forward, the company said it is launching a new EUR20 million Renewi 2.0 programme to create a simpler, more efficient and more digital business with higher margins and improved cash flows.
Its divisional structure will be simplified from five to four, the company said, creating commercial synergy and reducing cost and risk.
"Our specific actions on cost and cash will preserve our liquidity even in an extended crisis and we have secured amendments to our banking covenants until September 2021. As a result of these actions, we are well placed to mitigate the impact of Covid-19," said Chief Executive Otto de Bont.
Renewi shares were trading 0.2% lower in London on Thursday morning at 26.20p each.
By Evelina Grecenko; [email protected]
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