City briefs: Renew; Severfield; Cranswick
Engineering services group Renew has delivered a record financial performance, with annual sales jumping to more than £1bn.
The Leeds-headquartered group mainly operates in regulated industries, including rail, infrastructure and energy, providing “non-discretionary” maintenance services.
Pre-tax profits rose 6% to £60m after revenues increased 19% to £1.06bn in the year to September.
Paul Scott, chief executive of Renew, said: “I am very pleased to report we have delivered another excellent performance in FY24 with significant organic and acquisitive growth. We have further strengthened our order book and expanded our service offering, strengthening the foundations of our business.
“The start of new control periods in our largest sectors along with access to new market sectors marks a particularly exciting milestone for the Group and I am confident we are entering FY25 well placed to deliver on our ambitious long term growth strategy.”
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Severfield remains confident about its medium-term prospects despite “a number of large project opportunities” being delayed or cancelled.
The steel specialist increased underlying profits by 14% to £16m in the six months to September 28. Revenues were up 17% to £252m in the period.
Severfield chief executive Alan Dunsmore said: “We continue to see some good projects coming to market however, the predicted recovery in certain sectors has been slower than previously anticipated, and pricing has remained tighter for longer than expected.
“In addition, a number of large project opportunities for FY25 and FY26 have been either delayed or cancelled and, given the current market backdrop, we remain vigilant to the increased risk of delay to expected orders in the short-term.”
He welcomed the Government’s new National Wealth Fund, which has been set up to invest in energy, transport projects and critical national infrastructure.
“We have a prominent position in market sectors with strong growth potential and are well-positioned to win projects in markets with positive long-term growth trends including in support of a low-carbon economy and those which are driving the green energy transition, providing us with a strong platform to fulfil our strategic growth aspirations,” he added.
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Food manufacturer Cranswick is investing £50m in growing its poultry business as it continues to enjoy volume-led growth.
It is investing £20m to increase volumes processed through its fresh poultry operations in East Anglia, alongside the “substantial ongoing investment” at its two facilities in Hull.
The East Yorkshire group increased half-year revenues by nearly £80m, to £1.33bn, while pre-tax profits increased at a faster rate – up 17% to £96m.
Adam Couch, Cranswick’s chief executive said: “We have delivered another strong first half performance with good volume-led growth through capacity expansion and market share gains from close alignment to our key long-standing customers and a relentless focus on quality and industry-leading service levels.
“We remain on track to deliver further progress in the second half of the year. Our Christmas order book is strong and demand for our innovative products remains high as the UK consumer continues to appreciate the quality, value and versatility of our core pork and poultry ranges.”
