StockMarketWire.com - Recycling services company Renewi reported a 12% slump in first-half underlying pre-tax profits as it warned that future profits would be impacted by delays to volumes at its Dutch soil treatment plant.

Underlying pre-tax profits fell to €33.9m in the six months to 30 September 2018.

The company said it did not expect to resume full soil production at its ATM soil treatment facility in the Netherlands this year. This had resulted in reduced management expectations of "up to €3m operating profit per month".

"We have been working closely with regulators in order to resume full production at ATM and the supply of our cleaned soil into the market. However, yesterday, we received notification from the regulators requesting further analysis of our treated soil ahead of future shipments. As a result, we will limit production until the situation is resolved and this will reduce expected profit for the current financial year," CEO Peter Dilnott said.

While the first-half results were "broadly" in line with the company's expectations, it said that increased synergies and higher pricing were expected to have a positive impact in the second half.

The company maintained its dividend at 0.95p per share.



At 9:41am: [LON:RWI] Renewi Plc share price was -5.9p at 49.2p



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