A good start to FY18 was trailed in earlier updates and Commercial Waste was a strong driver of progress in H118. This is now reflected in our increased estimates for the current year, while subsequent years are effectively unchanged, as is merger integration synergy guidance. Renewi PLC (LON:RWI) already offers superior earnings growth and management’s strategic focus is on enhancing this further.
Well-flagged H1 progress
H118 results were preceded by two trading updates (27 September and 23 October) that pointed to gathering momentum in Commercial Waste partly offset by Municipal division challenges. This was borne out by reported results, which showed good overall progress in group revenue and EBIT (up 11% and 33% in sterling and +4% and +21% in local currency terms, respectively). Messaging and progress with the integration plan following the merger of the former Shanks and Van Gansewinkel (VGG) businesses at the end of the previous financial year were very much in line with previous guidance. The underlying core and non-core debt positions were stable in the period, better than earlier management expectations.
To read the entire report Please click on the pdf File Below: