Results centre
Preliminary Results FY24
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- Revenue of €1,689m and underlying EBIT of €105.5m from continuing operations (FY23: revenue of €1,704m and underlying EBIT of €131.7m).
- Underlying EBITDA from continuing operations of €230.2m: (FY23: €252.4m)
- Statutory loss of €30.9m: (FY23: profit of €66.6m) reflecting lower profits and an exceptional charge of €64.5m on the UK Municipal divestment
- Free cash flow of €20.9m (FY23: €25.3m)
- Core net debt €368.1m: (FY23: €370.6m), representing 2.1x EBITDA
- Dividend: A final dividend of 5p per share has been recommended for FY24
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- Commercial Waste: Solid volume development in Belgium, supported by legislation. Volumes in the Netherlands stabilised in the final quarter of the year, supported by the implementation of a new sales strategy, despite a continued challenging Dutch construction market.
- Mineralz & Water: Delivered a strong recovery, with increased uptake of new sand, filler and gravel products alongside a strong performance in water-related activities.
- Specialities: Continued strong momentum at both Maltha and Coolrec, benefitting from their leading positions in high growth niches. Revenue and underlying EBIT growth supported by pricing at Maltha and volumes at Coolrec.
- Recyclate prices: Prices were stable throughout the year, having returned to pre-Covid historical average levels, albeit plastic prices remain at lower than average levels due to international oversupply of virgin material.
- Simplify (SG&A efficiency programme): Launched to streamline staff functions and reduce costs, Simplify achieved its €15m run rate at the end of March.
- Future Fit (Digitisation Project): Accelerated in the second half of FY24, Future Fit aims to enhance operational efficiency, asset utilisation and customer satisfaction. The project will be implemented over the next two to three years and is fully accounted for in the existing medium term high-single digit EBIT target.
- Commercial momentum: new customer wins include Schiphol and Rotterdam airports, Dutch Ministry of Defense, Custodial Institution Agency, Total Energies, BPost, Nike, and Mouscon Hospital.
- Recycling rate: was 63.2%, down slightly from 63.7% in FY23 due to lower construction volumes which have a high recycling rate. This was partly compensated by the increase of advanced recycling of plastics and mixed residual waste.
- Lost Time Injuries Rate: decreased from 9.4 to 6.8, driven by cross-company initiatives including safety trainings and investments in site safety, resulting a safer workplace
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- FY25 trading expectations include return to revenue growth and significant margin improvement for the continuing Group, in line with current consensus.
- Commercial Waste expects to continue its strong performance in Belgium and to improve in the Netherlands, building on stabilised volumes, despite the ongoing weakness in the construction sector. Further margin improvement is expected as existing programmes ramp up to their run-rate benefits.
- Continuing Mineralz & Water turn-around, underpinned by the higher run rate achieved in late FY24 continuing into FY25. Additionally further improvements are expected in the quality and consistency of the materials.
- Investment in innovative projects within Coolrec and Maltha in progress, with returns expected during the second half of FY25
- The UK Municipal Divestment will increase near term leverage; deleveraging expected at 0.4 – 0.5 turns per annum
- Reiteration of 3-5 year targets:
- 8-10% underlying EBIT margin
- Free cash flow/EBITDA conversion >40% o ROCE >15%
- Organic annual revenue growth >5%