StockMarketWire.com - Waste-to-products group Renewi warned it would record a €25.5m exceptional charge in its annual results, owing to a new Dutch tax and Brexit hurting a key contract in Holland.

The company also announced that it had applied for a secondary listing on Euronext Amsterdam, expected to become effective on 30 January.

Renewi had previously warned of the risk to its ELWA contract arising from a Dutch tax on the import of burnable waste, and from Brexit.

'The crystallisation of these events will increase the off-take costs of our ELWA contract by over €5m per annum until new outlets can be found,' it said Monday.

'The impact of Brexit following the transition period is also expected to add up to €1m per annum in haulage and tariff costs.'

'As a result, ELWA has become an onerous contract and an exceptional charge of €25.5m will be taken in the full year results.'

To be sure, Renewi said it expected to deliver full-year results in line with its expectations.

The company's commercial Division had traded broadly in line with expectations, with it experiencing lower volumes of construction and demolition waste, reflecting challenges in the Dutch construction market.

The hazardous waste division traded slightly above expectations, while the monostreams and municipal divisions performed in line with expectations.










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