Renewi sells 50% stake in Cumbernauld facility, exits UK organics sector

3rd Sep 2018 09:06

(Sharecast News) - Waste-to-product company Renewi has sold its 50% stake in the Energen Biogas anaerobic digestion facility in Cumbernauld to Bio Capital Limited, completing its strategic exit from the UK organics sector.Renewi said the sale of this non-core asset, which contributed £1.6m to group pre-tax profit in the year to the end of March 2018, is fully aligned with its stated strategy to actively manage its portfolio business. In addition, the company's exit from the UK organics sector enables the municipal division to focus its effort and resources, while also generating cash and a profit on sale.The sale was completed for an undisclosed cash consideration which will result in a £10m profit on sale which will be reported as an exceptional item in the current financial year.James Priestley, managing director of Renewi's municipal division said: "I am pleased that we have completed our planned exit from the UK organics sector with the sale of our non-core EBG facility. "The sale of EBG is fully aligned with our strategy, generates cash and profit, and allows us to focus on delivering profit growth within the municipal division. We will now work with BCL to ensure a seamless transition."At 0920 BST, the shares were up 0.3% to 63.19p.