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Renewi ups full-year expectations, shares jump
4th Oct 2021 11:47
(Sharecast News) - Renewi upgraded its full-year outlook on Monday, sending its shares higher, after the recycling specialist saw volumes and prices rise during the first half.
The firm said revenues in the first five months of the financial year were more than 10% above the Covid-affected prior year on an underlying basis, and 7% up on the pre-Covid year to 31 March 2020.
Overall, Renewi said it had performed strongly in the six months to 30 September, "with increased volumes, improved recyclate prices and ongoing cost management continuing to support better-than-expected trading".
The commercial division performed particularly well, it said, with core volumes in Belgium ahead 15% in the five months to 31 August and 2% higher in the Netherlands.
The mineral and water division experienced a more mixed first half, but the specialities unit fared better, boosted by a "particularly strong performance" by Coolrec, its plastic recycling business.
As a result, the board is now "materially" increasing its expectations for the full-year.
As at 1300 BST, shares in the company had put on 9% at 652.0p.
Longer term, Renewi said good progress continued to be made with its strategic growth initiatives, including committing €80m of capital to its innovation pipeline to enable it to improve earnings before interest and tax by €20m by the end of the 2025 full year.
London-listed Renewi was created in 2017 through the merger of the UK's Shanks Group with Dutch recycler Van Gansewinkel.
The firm said revenues in the first five months of the financial year were more than 10% above the Covid-affected prior year on an underlying basis, and 7% up on the pre-Covid year to 31 March 2020.
Overall, Renewi said it had performed strongly in the six months to 30 September, "with increased volumes, improved recyclate prices and ongoing cost management continuing to support better-than-expected trading".
The commercial division performed particularly well, it said, with core volumes in Belgium ahead 15% in the five months to 31 August and 2% higher in the Netherlands.
The mineral and water division experienced a more mixed first half, but the specialities unit fared better, boosted by a "particularly strong performance" by Coolrec, its plastic recycling business.
As a result, the board is now "materially" increasing its expectations for the full-year.
As at 1300 BST, shares in the company had put on 9% at 652.0p.
Longer term, Renewi said good progress continued to be made with its strategic growth initiatives, including committing €80m of capital to its innovation pipeline to enable it to improve earnings before interest and tax by €20m by the end of the 2025 full year.
London-listed Renewi was created in 2017 through the merger of the UK's Shanks Group with Dutch recycler Van Gansewinkel.