Peel Hunt stays at 'buy' on Renewi, highlights net debt reduction

In particular, they noted how the waste management outfit was successfully passing on cost inflation without any meaningful increase in customer churn.

Other positives included slight growth in Netherlands Commercial, progress towards certification and soil stockpile reduction at its ATM unit and a better-than-expected performance at its specialities division.

Indeed, on pre-IFRS 16 terms, net debt was seen ending the year at €370m or 1.9 times their estimate for the company's earnings before interest, tax, depreciation and amortisation.

Peel Hunt had been anticipating €438m.

Much of that difference however was the result of deferred capital expnditures, Peel Hunt added.

"With growth investments on track, we maintain our Buy rating and TP of 920p, targeting a c.6.0x FY23E [enterprise value]/EBITDA ratio."