Renewi (RWI)

Business description

Renewi is a waste-to-product company with operations primarily in the UK, the Netherlands and Belgium, and activities spanning the collection, processing and resale of industrial, hazardous and municipal waste.

Investment summary

Having reported good progress in the seasonally stronger H1, Renewi’s latest update for H2 to date reaffirmed management's expectations for the year. Each of the four divisions appears to be demonstrating their usual seasonal characteristics, with operational improvements a key focus. A review of onerous UK Municipal contracts has quantified net exceptional costs totalling £73m (including c £49m for three long-term ongoing PFI operating contracts, the remainder for exiting two other operations). There is no change to our headline estimates or any material impact on group net debt or annual cash flows as a result. These actions will allow investors to re-focus on the important merger integration programme, now entering its second year and continuing on track.

Last updated on 06/04/2018

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 614.8 69.2 21.6 4.3 17.4 4.7
2017A 779.2 81.6 26.0 3.7 20.3 14.4
2018E 1531.4 161.2 51.0 4.8 15.6 5.9
2019E 1547.3 186.3 70.6 6.6 11.4 4.0

Last updated on 25/03/2018

Latest video

Executive Interview - Shanks

Industry outlook

After an extended period of contraction the Dutch waste market, accounting for the largest single business within Renewi, has returned to growth as the economy has recovered, boosted in particular by stronger construction activity.

Last updated on 06/04/2018

Key management

Colin Matthews , Chairman
Peter Dilnot, CEO
Toby Woolrych, CFO

Company address

Mount Farm
Dunedin House, Milton Keynes
United Kingdom
+44 (0)1908 650650
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