Waste and recycling firm Renewi today said that the weakened state of sterling against the Euro would be a factor in a positive performance over its financial year to 31 March 2018.
And, the business pointed that higher volumes of waste being handled within its commercial division was boosting performance.
The financial comments by the company – which was created by the merger of Shanks with Dutch firm Van Gansewinkel – came today (23 October) in a trading update which highlighted a “particularly strong performance in September”.
All smiles at Renewi with an upbeat trading forecast
This prompted the Board to review the Group’s “trading momentum and prospects for the full financial year. As a result of this, the Board now expects the Group to deliver a result for the year ending 31 March 2018 which is significantly above its previous expectations”.
Renewi’s commercial division, said the update, had performed strongly “with increased waste volumes driven by improving economic growth and construction market recovery”.
Recyclate income also remained strong throughout the period, it noted.
In addition, the Monostreams division delivered a “positive performance”. The division handles a range of waste streams which focus on specific end markets such as glass, electronic goods, organics and minerals.
Currency
On the currency front, Renewi, which is listed in the UK and reports in sterling, said: “Reported earnings in the first half have also benefited from the relative weakness of sterling compared with our GBP:EUR budgeted rate of 1.20.”
Looking ahead, the trading update added: “The Board expects the group’s profits to be more strongly weighted towards the first half than usual because of the favourable market conditions in the seasonal construction market together with the outlook for moderating recyclate prices in the second half and reduced soil treatment volumes.”
The post Weak sterling boosts Renewi figures appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
