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Wed June 03 2020

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Renew weathers storms to reach new heights

19 May Engineering services group Renew Holdings has posted record half-year results, helped by demand for its services generated by February storms.

Renew companies AmcoGiffen and QTS recently collaborated on a drainage project in the Severn Tunnel
Renew companies AmcoGiffen and QTS recently collaborated on a drainage project in the Severn Tunnel

For the six months ended 31st March 2020, Renew posted an adjusted operating profit of £19.9m (2019: £18.4m) on revenue of £313.6m (2019: £301.0m). Pre-tax profit was up 5% to £15.2m (2019: £14.5m).

The results include a contribution from roadworks contractor Carnell, which was acquired in January 2020.

The order book at 31st March 2020 was £690m (2019: £580m) and there has been no significant change in the order book characteristics as a consequence of the Covid-19 pandemic, the company said.

Renew’s services were much in demand when storms hit in February.  In response to the effects of Storm Ciara and Storm Dennis in February 2020, which flooded rail and road networks across the country, Renew saw “significant and sustained demand for our emergency support services across the most severely impacted locations in Wales, North West and Central, Eastern and Scotland”.

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Chief executive Paul Scott said: “Working around the clock, despite the challenging weather conditions and remote locations, our teams undertook vital works to ensure the integrity and safety of the railway for passengers and freight customers, minimising disruption and protecting community transport links. Works included repairs to a major landslide between Thornhill and Dumfries in Scotland and slope failure repairs at Auldgirth, Scotland. Emergency repairs were also undertaken on the Glasgow South Western Line following a significant landslip and at a number of locations on the Hereford to Newport Line in South Herefordshire.”

Approximately 80% of Renew’s activities have continued during the health crisis as they are deemed critical works. With lockdown restrictions beginning to ease, it is now planning to remobilise the remaining 20% of its operations. Only about 13% of the workforce has been furloughed. 

Chairman David Forbes said: “The strength of the group’s position in its markets and the essential nature of the work we undertake gives the board confidence that Renew remains well placed to play a significant role in the long-term opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding our economy.”

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