Renewi reports net loss for FY ended 31 March 2017
Waste management company Renewi, the combination of UK-based Shanks and Netherlands-based Van Gansewinkerl, has recorded a loss for its first financial year.
The company's net loss for the year ended 31 March, 2017, stood at £60.0 million (€70.37m).
Shanks and Van Gansewinkel merged on 28 February, 2017, to create Renewi. Shanks stated that it took the decision in order to strengthen its position in the Netherlands and Belgium.
Revenue went up by 27% to £779.2 million. The increase in turnover was helped by the weaker pound.
Commenting on the results, Peter Dilnot, CEO of Renewi, said: “This has been a transformational year with the successful completion of the merger with Van Gansewinkel Groep (VGG) and the rebranding of the new combined group as Renewi. In the legacy Shanks business we delivered a good performance for the year overall, with revenue and underlying profit in line with the Board’s expectations. VGG has also performed strongly.
“Our priorities for the year ahead are to integrate our legacy businesses and to generate growth from strong underlying trading and successful synergy delivery. We have already built up positive momentum as Renewi and are on track with the execution of our merger plans. Looking forward, our position in the emerging circular economy, coupled with the benefits of the merger, will deliver sustainable growth, margin expansion and attractive returns.”
In a statement, the company said: Having successfully completed the merger with VGG, our key priorities for the year ahead are to integrate our legacy businesses and to generate growth from strong underlying trading and successful synergy delivery.
“In parallel, we will fix the Municipal Division and build up momentum for sustained growth and earnings accretion in 2018/19. Whilst alert to macroeconomic developments, the Board remains confident that 2017/18 will be a year of good progress, in line with its expectations. Current trading for the year to date and the initial stages of the integration process support this view.
“Looking forward, our growth drivers remain strong. Renewi plays an important role in the emerging circular economy, a market that is expected to grow rapidly in the coming years with the support of European Union and government legislation.
“Moreover, the fully integrated Renewi has a compelling offering for customers, combining local service, international expertise and an unrivalled breadth of products. This strong positioning, coupled with synergy delivery and the roll-out of our proven margin expansion initiatives across Renewi, will deliver sustainable growth, enhanced margins and attractive returns.”
This story was written by Liz Gyekye, editor of Bioenergy Insight.