Renewi shares (LON: RWI) soared 18% on Thursday afternoon.
According to the Buckinghamshire-based company, trading between 1 April to 30 September was “materially ahead” of expectations.
“Given the resilience of the group’s trading in the first half, which included a period of extensive lockdown measures in the first quarter, the board now anticipates a performance for the year ending 31 March 2021 which is materially ahead of its previous Covid-19 adjusted expectations,” said the group in a statement released on Thursday.
Whilst the share price surged by 18% on Thursday to 22,90, the price of shares has fallen by 37% this year to date.
“The Board remains suitably cautious about the macroeconomic outlook, including any potential future slowdown in the later-cycle Dutch construction market and potential further measures to contain Covid-19,” said the group on future trading.
“However, given the resilience of the Group’s trading in the first half, which included a period of extensive lockdown measures in the first quarter, the Board now anticipates a performance for the year ending 31 March 2021, which is materially ahead of its previous Covid-19 adjusted expectations.”
“Longer term, whilst the speed and extent of economic recovery will influence our performance, waste volumes have historically been resilient through cycles and the transition to increased recycling will continue to support our business model. The sustainability agenda and the potential for a “green recovery” supported by the EU and national governments are expected to present attractive opportunities for Renewi to convert waste into a wider range of high-quality secondary materials. We remain confident our three strategic growth initiatives will deliver significant additional earnings over the next three years and beyond.”
Renewi shares (LON: RWI) are currently trading +19.72% at 23,25 (1545GMT).