Renewi FY trading seen ahead of previous expectations

23rd Mar 2022 09:17

(Sharecast News) - Waste-to-product business Renewi said on Wednesday that overall trading for the year ending 31 March has "remained strong", with the group now expecting its full-year performance to be ahead of previous expectations.

Renewi stated it had continued to "trade strongly" through January and February, with ongoing high recyclate prices and good cost control more than offsetting volumes that continued to be adversely affected by Covid-19 restrictions.

The London-listed firm noted that its cash flow performance was in line with expectations and added that its balance sheet remained "strong", with leverage at year-end expected to be around 1.5x net debt to underlying earnings.

Looking forward, Renewi said it remained confident in both its medium and long-term outlook, with its strategic growth programme on track to deliver "significant additional earnings" over the next three years and beyond.

"We continue to see positive structural growth drivers as Dutch and Belgian regional governments progressively tax carbon emitters, incentivise recycling over incineration, and promote the use of secondary materials. This translates to positive growth opportunities across Renewi's markets as we assist our customers in recycling more and in using our high-quality secondary materials," said Renewi.

As of 0915 GMT, Renewi shares were up 1.42% at 712.0p.