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Renewi sees FY in line, higher charges from council contracts
Waste management company Renewi on Monday said full year trading would be in line with expectations after a positive second half.
However, the company, formed in 2017 after the merger of Shanks Group and Van Gansewinkel Groep, said it was likely to book higher exceptional charges due to loss making contracts in its municipal division as cash-strapped councils struggle under central government austerity measures.
It added that exceptional integration related charges are likely to be lower than forecast in the current year, "primarily as a function of timing".
Renewi said it was still on track to deliver at 12m in savings for the full year and remained confident that the overall 40m synergy programme would be delivered on schedule.
Volume growth at the company's commercial division fell during the third quarter, reflecting the seasonal slowdown in the construction and demolition sector.
"Faced with the Chinese import ban on paper and plastic recyclates, we found alternative outlets for our products and, as expected, margins reduced slightly as a result," the company said.
"Since the start of 2018 we have increased prices to offset cost pressures on wages, insurance and waste outlets."