Renewi - Accentuating positives

As trailed at the pre-close stage, further Commercial progress and tangible evidence that ATM can become a more positive contributor to group earnings were Renewi’s strongest H120 messages. Disposals are facilitating group de-leveraging. FY20 guidance is unchanged; our estimates are c 16% lower in all years now from a number of model adjustments including a better representation of underlying UK Municipal run rates. However, single-digit earnings multiples for this strategically well-placed business should attract investor attention.