Renewi warns on earnings, scraps final dividend

Fri, 29th May 2020

Waste manager Renewi scrapped its final dividend while warning on earnings amid a fall in waste volumes. The company said cancelling the final dividend for 2019 would save it €10m. The Covid-19 pandemic was expected to cut operating earnings and cash by up to €20m in the first quarter, compared with previous expectations. 'The outlook for the remainder of the year will be dependent on the nature and timing of the lifting of lockdown restrictions and the speed of economic recovery,' the company said. Renewi said it had €252m of liquidity as at 31 March, including €195m in cash. Cash conserving measures had saved €60m during the 2021 financial year. Renewi said it delivered an essential service and maintained an unaffected service to all its 200m customers. The impact of Covid-19 since the second half of March had varied with the different lockdown restrictions in each region and sector. In Belgium, lockdown had resulted in a fall in waste volumes of around 35% in April, improving slowly in May. In the Netherlands, waste volumes fell by around 15% in April, with resilience in construction and bulky waste reducing the greater impact in roller bin collection. In the UK municipal segment, the closure of household waste recycling centres had reduced revenue, partially offset by increased residual volumes. At 9:56am: (LON:RWI) Renewi Plc share price was +2.32p at 20.9p Story provided by StockMarketWire.com

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