Renewi sees trading in line; to start reporting in euros

International waste business Renewi said first quarter trading was in line with expectations as merger synergy and integration projects progressed well, placing the company on track to deliver €30m in full year savings.

The company added that it would start reporting in euros to provide a more stable picture about its performance although it would still pay dividends in sterling. Full year guidance remained unchanged.

Renewi, formed last year through the merger of Shanks and Van Gansewinkel Groep, said its commercial division had continued to see encouraging volume growth with price increases to offset cost inflation successfully implemented.

“We have also seen a stabilisation in paper and plastic recyclate prices at levels slightly above the lows seen in February and March. Market capacity has continued to tighten for the disposal of combustible waste to incinerators and for other residual waste flows, further increasing disposal costs,” the company said.

“The hazardous waste division has started the year as expected. We have made good commercial progress securing new outlets for our thermally treated soil, although we have encountered an additional challenge in securing a specific local regulatory approval for its use.”

Renewi said it expected to make progress on sales opportunities in the coming months, with plans to resume full production in the second half as previously indicated.