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Sun June 26 2022

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Renew profits rise 19%

18 May 21 Engineering services group Renew has once again shown itself apparently immune to global pandemics and posted record half-year financial results.

Chief executive Paul Scott
Chief executive Paul Scott

Renew said that the third national lockdown had no material impact on its trading performance and it is continuing to see demand for its services across all markets.

For the six months ended 31st March 2021 Renew grew pre-tax profit by 19% to £18.1m (2020 H1: £15.2m) on revenue up 17% to  £366.4m (2020 H1: £313.6m).

The group's order book at 31st March 2021 was £750m (2020 H1: £690m), underpinned by long-term framework positions.

Renew Holdings includes the old Lovell construction business  as well as Walter Lilly, VHE, Seymour,SEL, Amco-Giffen, Carnell, Clarke Telecom, and, since 26th March 2021, the utilities contractor J Browne Group.

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Chief executive Paul Scott said: " In the context of a challenging macro-economic backdrop, we have delivered a robust set of results that demonstrate Renew's core resilience, our differentiated, low-risk, capital-light business model and the attractive growth opportunities which exist in our chosen markets, driven by long-term programmes of investment, providing visibility of spend over regulatory cycles.

“We remain focused on leveraging the group's strengths to build on our track record of good organic growth and selected M&A activity in related end markets with strong prospects, twinned with high cash generation and shareholder returns.

“The acquisition of Browne further increases our exposure to a water market with an attractive long-term growth profile and highly visible cashflows. We will continue to seek opportunities in markets with similar characteristics of non-discretionary regulated investment, ongoing renewal and maintenance requirements and high barriers to entry, adopting a disciplined approach to capital allocation that is additive to our focus on delivering profitable organic growth.

“Trading has started strongly in the second half of the year underpinned by a record order book and we are well positioned to take advantage of the compelling infrastructure-led growth opportunities that will play a key role in the UK's economic recovery.”

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