Acquisitive engineering firm posts record profits

ENGINEERING services firm Renew has seen a record year, with profits and revenues up.

For the half year to 31 March, Renew posted revenues of £265.1m, up 5% on the same period the year before. Pre-tax profits also leaped from £7.71 to £8.80m for the half year.

It announced record results for the year to September, with pre-tax profits at £19.6m on revenues of £500m, and expects to exceed this in 2016.

The Leeds-based company, which provides integrated engineering support to assets in the nuclear, fossil, gas and renewable energy markets, employs 1,200 of its 3,000 staff in Yorkshire.

Current chief executive Brian May told TheBusinessDesk.com: “We’ve had a good strong start to the year with the increase in results compared to last year, strong increase in order book which bodes well going forward, with revenues fully secured for the second half of the year.”

The company is set for big changes on the horizon this year, with outgoing chief executive Brian May retiring later this year in September 2016.

Succeeding him will be Paul Scott, director of engineering services, and the board has already been strengthened with the appointment of Andries Liebenberg, rail managing director.

Mr May said: “Paul has been with the group 15 years, and has been involved in a period of substantial growth. He has been on the board for the last two years, and his appointment is very much part of a succession strategy.”

Earlier this year, in February, Renew acquired a specialist nuclear business based in Sellafield, and it plans to continue its non-organic growth strategy, in addition to its organic one.

“We are acquisitive,” said Mr Scott, “and we have a track record of acquiring businesses with complementary capabilities. We’ve done it over a number of years to compliment and broaden our service offering. It is part of the success of our growth strategy.

Mr May said: “We have a fixed strategy of what we’re trying to do, our acquisition track record covers energy, infrastructure and environmental businesses, businesses which operate direct employment, with strong brands as well as financially solid.”

Dividends for the year increased 18% to 2.65p.

 

Close