£55m increase in sales sees Renew smash 2017 target

ENGINEERING services group Renew Holdings has smashed its 2017 target of revenues of £500m after another strong year of growth.
Profitability grew at nearly twice the rate of revenues, with adjusted pre-tax profits up 22% to £19.6m in the year to September.
The Leeds-headquartered business, which employs 1,200 of its 3,000 staff in Yorkshire, works mainly on maintenance projects in regulated sectors including rail and water infrastructure.
A key part of the business’s long-term growth has been Barnsley-based Amco, which it bought from Endless in February 2011 for £19.8m.
Renew had revenues of £290m in the previous financial year, while Amco generated about £80m. It is now responsible for £200m of the group’s turnover, which has reached £519.6m, contributing more than half of Renew’s growth since it joined the group.
“We are pleased to be reporting another strong year,” said Brian May, chief executive of Renew. “We are in good shape. We have got good visibility as a lot of our frameworks go beyond next year.”
Renew will pay shareholders a £4.3m dividend after announcing a 40% increase in dividends, to 7.0p, and it said it “continues to grow dividends progressively”.
Its shares closed last night on the Alternative Investment Market at 340p, just below its all-time high. Its market value has quadrupled since spring 2013 to more than £200m.

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