Renewi: In-Line Trading Update
Edison | Feb 15, 2018 07:46AM ET
Having reported good progress in the seasonally stronger H1, Renewi’s (LON:RWI) latest update for H2 to date reaffirms management expectations for the year. Importantly, the merger integration programme is very much on track and the next significant phases are underway. A UK Municipal contract review has been flagged, but our estimates are unchanged in all respects ahead of more detailed year-end update commentary. Share price weakness has brought forward valuation attractions, in our view.
Focusing on operational improvements
Overall group trading performance so far in the second half has met management expectations. Similarly, each of the four divisions appears to be demonstrating their usual seasonal characteristics, with operational improvements a key focus. At the same time they have also shown an ability to cope with some adverse market developments (eg soil treatment volume reduction, reduced waste export to China) while also moving forward through the integration programme, commissioning a new Canadian Municipal facility and extending the glass recycling JV (Maltha). The company has given early notification of onerous contract reviews regarding UK Municipal operations. The outcome of this will be known before the year end and the extent of any related exceptional items may or may not be partly offset by lower than expected FY18 integration costs incurred.
To read the entire report Please click on the pdf File Below:
Renewi: In-Line Trading Update
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.