Renew, Leeds engineering group, tops £620m revenue

Leeds-based engineering services group Renew Holdings announced what it called “a set of record results” on Tuesday for the year ended September 30, 2020, showing revenue rose 3.3% to £620.4 million and profit before tax soared 18.9% to £32.1 million.

The group’s order book at September 30 was up 20% at £692 million.

Renew’s largest customer is Network Rail.

The company’s shares have risen about 22% over the past year to give it a stock market value of about £420 million.

Renew said trading in the new financial year has started well and it is ideally positioned to play a significant role in recovery opportunities that will emerge across UK infrastructure.

Full year dividend per share fell 27.8% to 8.33p. No interim dividend was paid, so the final dividend of 8.33p represents an increase of 8.6% over the prior year final dividend of 7.67p.

Renew Holdings CEO Paul Scott said: “The pandemic has demonstrated like never before the core defensive strengths and resilience of our high quality, low risk, value-accretive business model in providing 24/7 specialist engineering services to our clients in complex, challenging and regulated environments. 

“Thanks to our differentiated and cash generative earnings model, we delivered a record trading performance, with a solid margin, strong cash flow and continued EPS growth.

“We continue to focus on bolstering our performance with highly selective, value enhancing acquisitions to strengthen our presence in key markets.

“Following the acquisition of Carnell earlier in the year, which facilitated our entry into the strategic highways network, I am very pleased with its positive contribution to the group’s results. 

“The growth prospects within our industry are highly attractive, driven by non-discretionary Government spending in relation to UK infrastructure, a greater focus on sustainability and renewable energy, population growth, technological innovation driving a shift towards digital transport networks and smart cities, along with increased regulation.

“Renew’s businesses operate in markets underpinned by sustainable, long-term structural growth dynamics and committed regulatory spend. 

“Trading in the new financial year has started well and we are ideally positioned to play a significant role in the long-term recovery opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding the economy over the next decade and beyond.”