Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Waste-to-product company Renewi said trading in its first quarter had been "in line" with expectations and, as such, its full-year expectations remained unchanged.
In the quarter from 1 April 2019 to date, the performance of the company's commercial division had continued the trends outlined in the company's full-year results, with momentum from price increases and synergies more than offsetting cost inflation.
The company added that it was monitoring any longer-term impact from the recent extended unplanned shutdown of the AEB incinerator in Amsterdam which would add further pressure to incinerator capacity in the Netherlands for the remainder of 2019.
In its hazardous waste division, oil inventory tests had "progressed well" and they awaited confirmation from the regulators on the results.
Renewi recently completed two small strategic investments in the Netherlands to acquire Rotie's food waste collection and depackaging activities and to acquire a 32% stake in a mattress recycling company alongside the investment vehicle of IKEA. Both investments strengthened its position in downstream waste-to-product activities and were expected to deliver attractive returns, it said.
On 17 June, the company agreed to sell its Canadian Municipal business for up to CAD107.5m to Convent Capital. The transaction was on track to close by end-September and the proceeds would be used to reduce the Group's net debt and leverage ratio.
Following completion of a subscription to a €75m Green Belgian retail bond at a coupon of 3%, which would settle on 19 July, ahead of the €100m maturity on 30 July, the company was now completely Green-funded.
The new issuance, combined with the €25m Green EUPP issued last December and the proceeds from its disposals, would ensure that Renewi had significant long-term headroom on its borrowing facilities.
At 9:45am: (LON:RWI) Renewi Plc share price was +0.8p at 27.7p