Record results take advantage of strength of UK infrastructure

Renew Holdings, the Leeds-based engineering services business which supports the UK infrastructure sector, has again reported record results.

The company works across water, telecoms, rail, nuclear and other infrastructure areas, accessing non-discretionary spend that has long-term visibility.

The board of the stock market-listed company has been buoyed by its strong order book and growth in both revenue and operating profit, and has increased its interim dividend by 13% to 3.00p.

Its adjusted pre-tax profits – before the exceptional item and amortisation – was up 11% to £12.0m. Its half-year revenues increased 9%, to £289.4m.

However its profits were affected by a £5.8m impairment after it exited its loss-making low pressure, small diameter gas pipe replacement activities.

Its gas operations are “now completely focused on medium pressure activities” which it said will result in lower revenue but which have been consistently profitable.

Paul Scott, who became chief executive in September 2016, said: “We think UK infrastructure is a pretty solid place to be. We have been taking market share organically and the acquisitive journey we have been on has been a successful one.”

Renew acquired specialist mechanical and electrical business Giffen Holdings in a £7m deal last November and the integration of that business is “progressing well”, the company said.

“We have broadened the service offering and we anticipate how customers engage with us,” added Scott. “Standing still is not an option.”