Renewi cuts dividend following delayed Dutch shipments

29th Mar 2019 15:11

(Sharecast News) - Waste-to-product outfit Renewi continued to trade in line with expectations in its soon to be wrapped up financial year, but the firm warned investors that earnings in its upcoming trading year looked set to fall after new regulations halted shipments from its Dutch hazardous waste treatment plant.Renewi's "stronger" fourth quarter, especially in its Dutch commercial division, brought the group in line with expectations for the full year.The London-listed firm expects to deliver cost savings of around €30m for its 2019 trading year, rising to €40m in the year ending 31 March 2020, as integration remains on track.However, Renewi warned that additional tests required by Dutch authorities for the resumption of shipments of thermally treated soil from its Dutch plant will result in a reduction of EBITDA in the 2020 trading year of around €25m.As a result of the reduced earnings, Renewi has extended its bank covenants to June 2020, a full 12 months, and pay a final dividend of just 0.5p per share, giving a total of 1.45p for the year - a 0.6p year-on-year reduction.Renewi also stated that its dividend for the year ending March 2020 will have a "similar reduction".Looking forward, Renewi assured investors it was "well placed" as an established leader in the European recycling market, a market the firm believes was set for "sustained and structural growth".As of 1540 GMT, Renewi shares had slid 4.49% to 23.06p.