Renew, Leeds engineering firm, grows revenue to £961m

Leeds-based engineering services and infrastructure group Renew Holdings said its revenue increased 13% to £960.9 million in the year to September 30, 2023, and profit before tax rose 17.4% to £49.5 million.

Renew Holdings said group order book remained strong at £860 million.

Full year dividend of 18p is an increase of 5.8%.

“Robust balance sheet and strong operational cash generation leaves us well positioned to continue to appraise selective value-accretive M&A opportunities,” said Renew.

The Leeds firm said it entered into new business areas “with a sharpened focus on collaboration within the group and the strategic acquisitions of Enisca and Rail Electrification Limited.”

Renew said it is now the “largest provider of maintenance and renewals services to Network Rail nationally.”

On current trading and outlook, Renew said it is “well placed to benefit from the Government prioritising investment in maintenance and renewals of existing infrastructure instead of large-scale enhancement projects.”

The firm flagged “exciting growth prospects in water ahead of significantly increased sector expenditure over the next decade and beyond.”

Post period end, Renew announced the acquisition of T.I.S. Cumbria Ltd, a nuclear manufacturing and fabrication specialist “which will strengthen our position in the growing nuclear decommissioning and new build markets.”

“Trading momentum has continued into the new financial year, and we are encouraged by the significant opportunities across the group,” said the company.

Renew CEO Paul Scott said: “I am very pleased to report that we have once again delivered record results despite the turbulent macroeconomic landscape.

“Continued growth in revenue, profit and our solid operating cash generation is testament to the strength of our business model and the group’s well-established positions in attractive and sustainable growth markets …

“Our core strengths leave us well placed to build on our strong track record of long-term value creation as we look ahead with impressive trading momentum and a strong forward order book.

“We remain excited about the significant growth opportunities across the group, underpinned by the increasing national demand for the maintenance and renewal of existing UK infrastructure, which will continue to be a domestic priority regardless of the outcome of the next election.”