Engineering firm’s half-year revenues up 14%

(Credit: Renew)

Leeds engineering firm Renew posted half-year revenues of £472m, up 14% on last year’s £414m, while adjusted operating profits rose by 9%.

The firm said it now had £890m of orders on its books, and while it was not immune from inflationary headwinds, trading went well in the first six months and it was confident full-year results would be in line with board expectations.

Chief executive Paul Scott said, “Supported by the commercial terms within our frameworks, the group has been able to successfully alleviate inflation challenges throughout the period, delivering operating profit and revenue ahead of strong prior half-year comparatives.

“Our results in a difficult macroeconomic environment highlight the strength of our business model, which is underpinned by committed regulatory spending periods and long-term frameworks resulting in repeatable revenue streams and highly visible earnings.

“Further, the mission-critical nature of the work we perform fosters long-lasting relationships with our clients illustrated through our strong track record of repeat contract wins.

“We welcomed the Government’s reiterated commitment to a record £600bn investment in transforming the UK’s infrastructure to meet the target of net zero carbon emissions by 2050. This has been reinforced by the Government’s announcements in March which show it has sharpened its focus on investment in infrastructure to improve climate resilience, which will bring significant opportunities for the group.”

The firm highlighted a successful joint venture between its brands in the highways market and growing opportunity for collaboration in the water sector, and wins for Wales Water in major civils, electrical and mechanical frameworks.

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