Listed engineering group forecasts better than expected full year results

Leeds-based engineering services Group, Renew, says it now expects its full year results to be materially ahead of current market expectations.

Since the announcement of its half year results, the Group says it has continued to deliver a strong trading performance, driven by ongoing demand for its critical asset maintenance and renewals services, and continued operational progress across its diversified Engineering Services end markets.

It now anticipates adjusted operating profit of no less than £50m, versus a current consensus forecast of £45.8m.

In a trading update published this morning, Renew adds: “Activity levels are supported by long-term regulatory spend and the positive outlook for UK infrastructure.

“Pleasingly, the integration of the Group’s two acquisitions during the period, Browne and REL are proceeding to plan and trading is in line with management’s expectations.

“The Group’s order book remains strong, underpinned by our long-term framework positions while net debt and cash generation are in line with expectations.

“Renew’s differentiated, low-risk, highly cash generative business model, combined with the mission critical nature of its work and exposure to markets with long-term growth dynamics, leaves the Board confident in the Group’s ability to capitalise on the long-term opportunities ahead.”