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Renewi sees full-year results in line with expectations
FTSE 250 waste-to-product company Renewi said on Wednesday that its results for the year to the end of March 2018 are expected to be in line with the board's expectations in terms of underlying trading and cash.
In a brief update ahead of the full-year results next month, the company said trading in the final weeks of the year continued to be in line with its expectations, along with its merger synergy and integration plans.
Last month, the group said it would take a £73m hit from impairments and provisions against expected losses from onerous municipal contracts, but that there would be no material impact on the group's cash flow or banking covenants.
Renewi said at the time that it would exit a loss-making PFI operating contract at Dumfries & Galloway and the facility at Westcott Park, which management said would simplify and de-risk the UK municipal portfolio, but result in £9m and £16m of extra costs respectively.
Onerous contract provisions were increased £27m in respect of the Barnsley, Doncaster and Rotherham PFI operating contract and another £27m for the Wakefield PFI contracts. Management said this reflected prudent recognition of expected future losses over the remaining lives of the contracts.
At 0812 BST, the shares were up 0.1% to 77.10p.