UK waste business charges a drag on Renewi's performance

Source: Renewi
24.05.2018 − 

In the first full year since it emerged from the merger of Shanks and Van Gansewinkel, Renewi saw revenues increase across all its divisions, with the notable exception of its municipal business. This division, whose activities include long-term waste treatment contracts with local authorities in the UK and Canada, achieved revenues of £193m (ca. €218, £1 = €1.13) in the year ended on 31 March 2018. This was a decline of 7 per cent against the pro forma figure from the previous year. It was announced in March that the division would also be taking charges totalling £73m in the 2017/18 year chiefly covering onerous contract provisions and a contract termination. 

The picture was quite different in Renewi's other divisions. Revenues from hazardous waste treatment climbed 8 per cent to £203m, while the "commercial waste" division which houses both commercial and household waste operations in Benelux booked revenues of £1.02bn, up 10 per cent. In its monostreams businesses, which include glass recycler Malta, Mineralz, Orgaworld and the e-scrap recycler Coolrec, revenue from continuing operations jumped 13 per cent to £180m.

On a consolidated basis, the concern reported revenues of £1.566bn, up 8 per cent on a pro forma basis. However, exceptional and non-trading charges of nearly £102m weighed heavily on the concern's results. Renewi reported am operating loss of £32.4m and a net loss of £47.6m for the year. Together the charges from the UK municipal division and the cost of the merger expenses made up a substantial share of the extraordinary items.


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