Shares in recycling firm Renewi binned by investors over contaminated soil delays

Shares in waste recycling firm Renewi have been binned by investors following delays at its contaminated soil facility.

The London-listed Dutch recycler said full soil production would not resume this financial year at its ATM contaminated soil treatment facility in the Netherlands.

The company said regulators had asked for further analysis of its treated soil ahead of further shipments and the delays reduced expectations by up to €3m (£2.6m) per month.

ATM is one of Europe's largest sites for the treatment of contaminated soil and water and for the disposal of hazardous waster.

Outgoing chief executive Peter Dilnot said production would be limited until the situation was resolved but said demand for recycling was strong.

He said: “Renewi's growth is underpinned by increasing demand for recycling services.

“Our end markets are being stimulated by a clear environmental need, increasing regulation and customer pull.”

Shares fell 17 per cent in early trading but recovered to trade 8.5 per cent down in the afternoon.

Renewi said its half yearly results were in line with expectations against a strong set of results the previous year.

Revenue climbed one per cent to €900m, while underlying pre-tax profit fell 12 per cent to €33.9m for the six months to 30 September compared with the same period in 2017.

Earlier this week Renewi announced Dilnot would be replaced by Otto de Bont, the company's Netherlands commercial division managing director.