Renewi - Near-term trading distracting from long-term trend

Longer-term recycling trends remain favourable and the next phase of strategic development indicates greater focus in core areas to pursue growth. In the near term, we acknowledge that ATM will be a distraction until full permit authority is formally restored and is weighing on our earnings expectations, which have stepped down by c 20% this year and by a lower double-digit percentage in the following two years. In a period of stark, risk-averse market sentiment, Renewi’s share price has suffered, but a 20%+ NAV discount and an 8% prospective dividend yield should be clear triggers for investors.