Renewi is a leading waste-to-product company in some of the world’s most advanced circular economies, with operations primarily in the Netherlands and Belgium. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste.
Renewi has announced the sale of the UK Municipal business. This will require funding of €146m, but will improve future cash by €15–20m a year, remove a significant liability, assist group margin by c 0.5% and provide great focus for both investors and management. Management estimates the deal will leave net debt/EBITDA at c 2.9x, which will reduce by 0.4–0.5x pa. Completion is expected by the end of 2024.
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Annemieke den Otter
CFO
Ben Verwaayen
Chairman
Otto de Bont
CEO
Forecast net debt (€m)
541.1
Forecast gearing ratio (%)
320
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (1.2) | 21.0 | 31.5 |
Relative | (1.2) | 16.2 | 22.0 |
52 week high/low | 734.0p/450.0p |
Weaker commercial waste markets, particularly in the Netherlands construction sector, and softer recyclate prices affected profits in FY24, despite improvements in Mineralz & Water and ATM, hence PBT was down 35%. The company reinstated the dividend. Management is more confident looking forward, assisted by the stabilising of Netherlands and recyclate pricing, cost benefits from the Simplify programme and further improvements at ATM.
Y/E Mar | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2023A | 1703.9 | 255.8 | 105.2 | 89.0 | 9.1 | 2.5 |
2024A | 1689.2 | 235.5 | 68.0 | 61.0 | 13.2 | 2.7 |
2025E | 1750.9 | 252.6 | 81.6 | 70.0 | 11.5 | 2.6 |
2026E | 1825.4 | 280.7 | 92.3 | 79.0 | 10.2 | 2.3 |
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