Renew, Leeds engineer, lifts H1 revenue to £313m

Shares of Leeds-based engineering services group Renew Holdings rose about 15% on Tuesday after it published what it called a record first-half report for the six months ended March 31, 2020.

Renew Holdings’ first-half revenue rose about 4% to £313.6 million and statutory profit before income tax rose about 5% to £15.2 million.

The firm said its order book at March 31 was £690 million, up from £580 million at the same stage of 2019.

About 80% of Renew’s activities have continued during the coronavirus crisis as they are deemed critical to the UK’s Covid-19 response.

“Since 31 March 2020 we have seen no significant change in the order book characteristics as a consequence of the pandemic,” said Renew CEO Paul Scott.

In his outlook, Scott said: “Our strong trading performance and cash generation in the period is reflective of the reliable long-term nature of the UK infrastructure markets in which we operate, a strategy reinforced in the Government’s latest Budget when it committed to investing £640bn in infrastructure over the next 5 years.

“The acquisition of Carnell has broadened our service offering into the highways market, increasing the opportunities available to the group under this long-term spending programme.

“Where we are able to satisfy the requirements of the Covid-19 safety guidelines, we continue to work closely with our customers directly delivering essential network services.

“In total, approximately 80% of our activities have continued during the crisis as they are deemed critical to the Covid-19 response.

“Following the UK Government’s recovery strategy launched on 10 May 2020, we are addressing immediate opportunities to remobilise the remaining 20% of our operations and we anticipate this positive momentum will continue.

“The strength of the group’s position in its markets and the essential nature of the work we undertake give the board confidence that Renew remains well placed to play a significant role in the long-term opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding our economy.”