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Fri January 28 2022

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Renew eyes further acquisitions

9 Dec 21 Engineering services group Renew Holdings has posted record financial results with revenue and pre-tax profits both up by 27%.

Rail contractor QTS is a Renew group company
Rail contractor QTS is a Renew group company

Renew’s focus on essential services in the rail, water, nuclear and highways industries have insulated it from the effects of the Covi pandemic.

Group revenue for the year to 30th September 2021 increased by 27% to £791.0m (2020: £620.4m). Statutory pre-tax profit was also up 27% to £40.8m (2020: £32.1m).

Adjusted operating profit increased by 29% to £51.2m (2020: £39.6m) at a margin of 6.5%. 

Renew group companies include Amco Giffen, Carnell, Seymour, VHE and Clarke Telecom.

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While organic growth accounted for 19% of the revenue increase, the numbers were also boosted by the acquisition of water industry contractor J Browne Group for £29.5m in March 2021, and REL, a specialist provider of rail overhead line electrification, for £5m in May.

Renew’s order book at 30th September 2021 stood at £749m, up from £692m a year before.

Chief executive Paul Scott said: “Once again the group demonstrated its resilience during the year, where two national lockdowns had no material impact on trading. This highlights Renew's ability to deliver consistently, thanks to our differentiated business model, the critical nature of our work and the committed, long-term, highly visible spending cycles that underpin our end markets.”

He also said that further acquisitions were in the company’s sights. “Our track record of successfully identifying, acquiring and integrating value-enhancing acquisitions in growing markets with ongoing renewal and maintenance requirements and high barriers to entry, has been a key driver of Renew's long-term growth,” he said. “The M&A landscape remains dynamic and we continue to look at opportunities in existing and new markets that are aligned with our acquisition criteria.”

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