Renewi - Preparing the ground for earnings recovery

Trading so far in H220 has matched management expectations at the headline level and FY20 guidance is unchanged. Outlook caveats in Commercial cause us to temper our expected future growth rate here pending further updates. Despite this, we anticipate that Renewi will enter FY21 with a more progressive corporate agenda – starting with its Euronext listing at the end of January – centred on improving profitability of the continuing businesses. Despite our moderated earnings growth profile, in our view the investment proposition is strengthening.