Waste management business Renewi says the efficiency savings resulting from the merger of Shanks and Van Gansewinkel earlier this year are being achieved faster than expected.
The company’s trading update for the past six months, ahead of its interim results in November, says the new group is performing strongly, “with trading ahead of our expectations”.
The update says that merger integration remains “on track” following the formal pairing being finalised in February.
“The run rate of synergies secured has reached nearly €8m (£7m) and remains ahead of our plan to deliver the committed €12m of savings in the current year. More than 250 projects have been identified to deliver the total committed €40m of cost synergies, including 165 ’quick win’ projects which we are implementing in the current year.”
The Renewi statement says other projects are being worked on for later in the year. Changes involving rebranding and the integration of core functions such as IT, finance and HR made “good progress” during the summer.
It adds that integration costs remain “well-controlled” and are lower than planned.
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Chief executive Peter Dilnot (pictured) said: “We have continued to trade strongly through the first half of the year, particularly in our commercial division. Our integration plans are also progressing well. Accordingly, the board is confident of delivering its expectations for the current year.
“Renewi is well positioned at the heart of a growing sector, and is on track to deliver significant value accretion from the merger in the year ending 31 March 2019.”
The update adds that the municipal division, which represents around 14% of group revenues, has “continued to make good progress in the UK in line with our expectations”.