TIDMRWI
RNS Number : 8493K
Renewi PLC
13 July 2017
This announcement contains inside information
13 July 2017
Renewi plc
("Renewi", the "Company" or, together with its subsidiaries,
the "Group")
AGM trading update
Renewi plc (LSE:RWI), the international waste-to-product
business, today announces a trading update for the three month
period from 1 April 2017 to date ahead of its Annual General
Meeting (AGM) to be held later today.
Commenting on current trading, Peter Dilnot, CEO, said:
"We have started the year strongly. Overall trading in the first
three months of the year is ahead of our expectations and our
synergy delivery is progressing well. Accordingly, the Board is
confident of delivering its expectations for the current year. We
are on track to deliver significant value accretion from the merger
in the year ending 31 March 2019."
Trading performance
The Group has started the new financial year strongly and is
trading ahead of our expectations, building on the positive
momentum generated following the completion of the merger of Shanks
with Van Gansewinkel on 28 February 2017. Following the merger and
our rebranding as Renewi, we continue to see positive support for
the Group across both new and existing customers.
The Commercial Division has continued to perform strongly,
particularly in the Netherlands, with ongoing volume and profit
growth in end markets. The Dutch construction market continues to
recover well and the broader Benelux economy is also showing
ongoing growth. Stronger recyclate prices and higher market volumes
are reinforcing our margin expansion initiatives. Pricing is also
strengthening slightly in core contract renewals, reflecting the
reduced availability of market capacity in a number of waste
disposal segments.
The Hazardous Waste Division has also started the year well. We
have had strong soil intake and throughput at ATM. The Reym and Van
Gansewinkel Industrial Services (VGIS) industrial cleaning
businesses are also performing strongly in the challenging oil and
gas market.
The new Monostreams Division has started the year in line with
our expectations with a good performance at the Minerals and
Orgaworld businesses offsetting some market weakness for Coolrec
and short-term operational challenges at Maltha where an important
new glass powder processing line is being commissioned at
Dintelmond.
The Municipal Division, led by a new management team, represents
around 14% of Group revenues. The UK business is making good
progress in line with our expectations. In Canada, further
challenges to the London composting facility have now been traced
to the incoming waste. Operational recovery at the facility is
underway although there will be an impact on first half
performance.
Cash and borrowings
The current and forecast net debt position is in line with the
Board's expectations.
Merger integration progress
Merger integration activities remain on track, with further
significant progress made since our preliminary results announced
on 25 May 2017. Highlights include:
-- Run rate of synergies delivered has reached EUR7m and is
running ahead of plan to deliver the committed EUR12m in the
current year
-- New external hires, Otto de Bont and Francis Schroder, have
been appointed as MD Netherlands Commercial and Group HR Director
respectively
-- Netherlands Commercial management team is now being appointed following positive advice last
week from Dutch Works Council (N-2 and N-3 levels)
-- Belgian Commercial management have been appointed (N-2 and N-3 levels)
-- Dedicated Integration Directors and associated teams
appointed within the Commercial Division
-- Branding projects are underway (e.g. rebrand newer trucks and key facilities)
-- Feasibility projects for the integration of IT systems largely completed
Outlook
We have started the year strongly. Overall trading in the first
three months of the year is ahead of our expectations and our
synergy delivery is progressing well. Accordingly, the Board is
confident of delivering its expectations for the current year. We
are on track to deliver significant value accretion from the merger
in the year ending 31 March 2019.
For further information:
Brunswick Group Renewi plc
+44 207 404 5959 +44 1908 650582
Carole Cable Peter Dilnot
Fiona Micallef-Eynaud Toby Woolrych
About Renewi plc
Renewi plc (LSE:RWI), created in 2017 by the merger of Shanks
Group plc (LSE: SKS) and Van Gansewinkel Groep B.V., is a leading
waste-to-product business ideally positioned to be part of the
solution to one of the main environmental problems facing society
today: reducing waste and avoiding pollution. With over 8,000
employees in Europe and North America, we have deep expertise and
an unrivalled breadth of waste management products and
services.
For us, waste is a state of mind, an opportunity. When we take
away someone's waste we do something great with it. We give it as
much new life as we can, by turning it into useful products and raw
materials for our customers like recycled paper, metal, plastic and
glass, woodchips, compost, energy, fuel and other products.
In the process, we protect the world from contamination,
preserve our planet's finite resources, enable our customers to
meet their sustainability goals, and provide our global customers
with an unrivalled product range, combined with local service and
attention.
Above all, our team is committed and passionate about our
mission: waste no more. Renewi operates across five divisions:
-- Netherlands Commercial - Collecting, sorting, treating and
recycling commercial and household waste in the Netherlands
-- Belgium Commercial - Collecting, sorting, treating and
recycling commercial and household waste in Belgium
-- Hazardous Waste - Treating soil, water and packed chemical
waste at our flagship ATM facility and conducting specialist
industrial cleaning in the Netherlands
-- Monostreams - Managing a range of waste streams which focus
on specific end markets such as glass, electronic goods, organics
and minerals in Europe
-- Municipal - Operating long-term waste management contracts
with local authorities in the UK and Canada
For more information please visit www.renewi.com Images are
available to download at www.renewi.com/imagelibrary
This information is provided by RNS
The company news service from the London Stock Exchange
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