REG-Renewi plc Renewi plc: Trading update

RenewiAnnouncement

11/03/2021 07:05

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   Renewi plc (RWI)
   Renewi plc: Trading update

   11-March-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   This announcement contains inside information

    

    

    

   11 March 2021

                                        

                                   Renewi plc

                                        

   ("Renewi", the "Company" or, together with its subsidiaries, the "Group")

                                        

                                 Trading update

                                        

   Renewi  plc  (LSE:  RWI),   the  leading  international   waste-to-product
   business, announces its pre-close  trading update for  the year ending  31
   March 2021.

    

   Trading update

    

   Renewi has continued to  perform well in the  fourth quarter, driven by  a
   strong performance in its core Commercial Division.  We have continued  to
   benefit from stronger  than expected  recyclate prices  and resilience  in
   bulky waste and  C&D waste  volumes to  offset lower  roller bin  volumes.
   Overall Commercial  volumes for  the  fourth quarter  are expected  to  be
   around 96%  and 95%  of the  prior  year in  the Netherlands  and  Belgium
   respectively. 

    

   Given the strong Commercial performance, Group underlying EBIT for FY21 is
   now expected to  be significantly  ahead of our  previous expectations  at
   around €68m.

    

   The Group's cash performance is also  expected to end the year  materially
   better than previous expectations.  Core net debt excluding IFRS 16  lease
   liabilities will likely be less than €350m (FY20: €457m) and the  leverage
   ratio below 2.5x driven  by strong trading  performance and Covid-19  cash
   actions including taxation deferrals. 

    

   Exceptional items are anticipated to be in line with prior guidance,  with
   the addition of a potential non-cash  impairment of goodwill at the  small
   Maltha subsidiary of less than €10m.

    

   We are also  pleased to  announce the appointment  of Marc  den Hartog  as
   Managing Director, Commercial Waste Netherlands, with effect from 1  April
   2021.  Marc joins from Corbion NV, with extensive experience in innovation
   and sustainability.

    

   Outlook

    

   Notwithstanding the Group's strong performance in FY21, the Board  remains
   suitably cautious at this  stage regarding the  outlook for the  financial
   year ending 31 March 2022 given  the uncertainty as to the varied  impacts
   of lockdown restrictions  ending, recyclate prices,  and a potential  late
   cycle slowdown in the construction sector.

    

   Longer term,  the  transition  to increased  recycling  will  continue  to
   support our business  model. The sustainability  agenda and the  potential
   for a "green recovery"  supported by the EU  and national governments  are
   expected to present attractive opportunities  for Renewi to convert  waste
   into  a  wider  range  of  high-quality  secondary  materials.  We  remain
   confident our three strategic growth initiatives - recovery of earnings at
   ATM, the Renewi 2.0 programme and  our innovation pipeline - will  deliver
   significant additional earnings over the next three years and beyond.

    

    

   For further information:
                             
    
   FTI Consulting           Renewi plc

   +44 20 3727 1545         +44 7976 321 540

   Susanne Yule             Adam Richford, Head of IR
   +44 20 3727 1340         +44 7773 813 180

   Richard Mountain         Michelle James, Communications
                             
                             

    

    1 www.renewiplc.com

   About Renewi

    

   Renewi is a leading waste to product  company that gives new life to  used
   materials every  day.  We  have  around 7,000  employees  working  at  174
   operating sites across Europe. Our extensive operational network means  we
   are always close to our customers.

    

   For Renewi, waste is a state of  mind, and an opportunity. Our many  years
   of knowledge  and experience,  combined with  a broad  range of  services,
   allow us  to  offer sustainable,  practical  recycling solutions.  We  use
   innovation and the latest technology  to turn waste into useful  materials
   such as paper,  metal, plastic, glass,  wood, building materials,  compost
   and energy. In  other words,  we turn  today's waste  into tomorrow's  raw
   materials.  The result  of our  work is  less waste  and contamination,  a
   smarter use of scarce raw materials, and a reduction in carbon  emissions.
   This means that we are contributing  towards a cleaner, circular world  in
   which we "waste no more".

    

   Visit our website for more information:  2 www.renewiplc.com.

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   ISIN:          GB0007995243
   Category Code: TST
   TIDM:          RWI
   LEI Code:      213800CNEIDZBL17KU22
   Sequence No.:  95259
   EQS News ID:   1174713


    
   End of Announcement EQS News Service

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