Renewi plc (LSE: RWI) opened stronger Thursday morning after the company announced its trading update for the year ending March 31st 2021; shares price spiked 16.3%.
The international waste-to-product business continued to perform well in the fourth quarter, aided by its strong core commercial division performance.
The company benefitted from better than expected recyclate prices and resilience in the bulky waste and C&D waste volumes to offset lower roller bin volumes. In the Netherlands and Belgium, commercial volumes for the fourth quarter are forecast to be about 96% and 95% of the previous year.
The group's underlying EBIT for FY21 is now predicted to be around €68 million, significantly higher than its previous estimate.
Furthermore, the group's cash performance is expected to end the year stronger than previous expectations, with core net debt likely to be less than €350 million.
The firm also announced Marc den Hartog's appointment as Managing Director of Commercial Waste Netherlands, starting from April 1st 2021.
Despite the strong performance in FY21, Renewi said it is remaining cautious regarding the outlook for the financial year, 2022, given the coronavirus's uncertainty.
In the long term, the company said that the transition to increased recycling will continue to support its business model with the EU and national governments' sustainability agenda.
Renewi's current share price is at 53.5p, gaining 16.3% after the announcement.