Renew, Leeds engineering firm, reports £890m orders

Leeds-based engineering services and infrastructure group Renew Holdings said its revenue increased 13.9% to £471.8 million and profit before tax rose 20.9% to £26.3 million in the six months ended March 31, 2023.

Interim dividend will rise 5.8% to 6p.

Renew Holdings said the group’s order book at March 31 had strengthened to £890 million.

Renew Holdings CEO Paul Scott said: “We are pleased to report another period of outstanding performance, once again illustrating the resilient and differentiated nature of our high-quality, low-risk business model.

“Supported by the commercial terms within our frameworks, the group has been able to successfully alleviate inflation challenges throughout the period, delivering operating profit and revenue ahead of strong prior half-year comparatives.

“Our results in a difficult macroeconomic environment highlight the strength of our business model, which is underpinned by committed regulatory spending periods and long-term frameworks resulting in repeatable revenue streams and highly visible earnings.

“Further, the mission-critical nature of the work we perform fosters long-lasting relationships with our clients illustrated through our strong track record of repeat contract wins …

With ongoing strong demand in our end markets, we enter the second half of the year confident in our full year performance and, longer term, in the attractiveness of the structural growth drivers.

“We welcomed the Government’s reiterated commitment to a record £600bn investment in transforming the UK’s infrastructure to meet the target of net zero carbon emissions by 2050.

“This has been reinforced by the Government’s announcements in March which show it has sharpened its focus on investment in infrastructure to improve climate resilience, which will bring significant opportunities for the group.”