Welcome - EN Welcome - FR Welcome - NL
 

Results centre

Preliminary Results 2016/2017

Transformational merger

  • Merger of Shanks and Van Gansewinkel Groep (VGG) to create Renewi plc completed on 28 February 2017
  • Compelling strategic and commercial rationale based upon complementary technologies, services and geographies
  • Target annualised €40m cost synergies to be delivered in financial year 2019/20, initial €12m to be delivered in 2017/18
  • Integration process well underway and on track, led by new combined management team
  • Renewi well positioned as a leading waste-to-product business centred in the Benelux with an unrivalled breadth of products, local service and international expertise

Business performance

  • Robust trading performance, with revenue and underlying profit before tax at constant currency in line with the Board’s expectations
  • Commercial Division in legacy Shanks business performed well, delivering trading profit growth of 27% at constant currency and improvement in return on operating assets of 320bps
  • Hazardous Waste Division in legacy Shanks business performed well, delivering trading profit growth of 9% at constant currency and improvement in return on operating assets of 360bps
  • Municipal Division in the UK and Canada generated a trading loss impacted by very difficult market conditions and operational challenges as previously reported: recovery plan being executed by new divisional management
  • VGG businesses delivered strongly improved performance in calendar year 2016 with 23% increase in EBITDA, prior to merger completion, driven by top-line revitalisation and cost reduction initiatives

Financial summary

  • Overall performance in line with the Board’s expectations
  • Revenue up by 27% (15% like-for-like*, 14% at constant currency)
  • Trading profit up by 9% to £36.5m (down by 2% like-for-like*, down 9% at constant currency)
  • Underlying profit before tax up by 22% to £25.7m (up by 7% like-for-like*, flat at constant currency)
  • Underlying EPS down 12% to 3.7p (adjusted for the rights issue)
  • As previously advised, total Group exceptional and non-trading charges of £87.1m, principally reflecting merger costs and UK Municipal business (2016: £23.5m), resulting in a statutory loss before tax of £61.4m
  • Year end core net debt slightly better than expected at £424m, resulting in a net debt to pro forma EBITDA ratio of 2.8x
  • Final dividend maintained at 2.1p per share (adjusted for the rights issue)

*Like-for-like excludes the impact of VGG’s one month of trading for March 2017.