Renewi to take exceptional charges following onerous contract review
Source - SMW
Waste management business Renewi said trading during the 'seasonally quiet' second quarter was in line with its expectations.
The company, however, said it expected to take exceptional charges during the year after reviewing onerous contracts in its municipal division.
Merger synergy and integration projects were progressing well and the company said it remained on track to deliver at least €12m of savings for the year ending 31 March.
'We remain confident that the overall €40m synergy programme will be delivered on schedule,' Renewi said.
Volume growth in the commercial division declined towards the end of the third quarter, reflecting a 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.'
In the hazardous waste division, Renewi said its soil cleaning line continued to operate at reduced capacity and management was focused on increasing throughput by securing suitable new outlets.