Record results for listed engineering services business
Engineering services group Renew Holdings has today reported a record set of results for the year ended 30 September 2020.
The Leeds-based company has recorded pre-tax profits of £32.1m, up nearly 19% from £27m the year before.
Group revenue rose 3.3% to £620.4m from £600.6m. Engineering Services accounted for over 90% of the Group’s adjusted operating profit, and delivered revenue growth of 2.4% to £577.2m (2019: £563.8m).
And the Group’s order book at 30 September 2020 strengthened by about 20% to £692m (2019: £581m).
Renew Holdings says it has continued to deliver mission-critical services to clients through both UK lockdown periods.
“The pandemic has helped to fully demonstrated the core strengths of Renew’s differentiated business model. Despite the many challenges presented by Covid-19, we have delivered extraordinary and record results for the Group and strengthened our position across our markets”, the firm’s chief executive, Paul Scott said.
He explained that demand remained strong with 80% of the group’s operations continuing throughout the peak of the first lockdown.
Despite this the group did take actions to preserve cash and protect liquidity, having previously announced the deferral of all non-essential capital expenditure, a hiring freeze, deferral of VAT payments, utilisation of the Government’s furlough scheme and a temporary 20% reduction in the salaries/fees of the Board and senior management, as well as the suspension of an interim dividend payment to shareholders.
The results also include a contribution from Carnell, a leading provider of specialist engineering services which Renew acquired in January 2020, which marked the group’s entry into the highways market, which Scott said offers “a compelling new growth area”.
Looking ahead Scott added: “These results demonstrate the resilient and long-term nature of the UK infrastructure markets in which we operate and provide a solid platform for our continued growth ambitions.
“Trading in the new financial year has started well and we are ideally positioned to play a significant role in the long-term recovery opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding the economy over the next decade and beyond.
“The Board remains confident that Renew is strongly positioned to play a significant role in the long-term recovery opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding the economy over the next decade and beyond.”
