Renew Holdings on acqusition trail
RENEW Holdings is on the lookout for further acquisitions in the engineering sector.
The engineering services group announced record half year results this week and said it has a record order book of £361m.
Chief executive Brian May said that the company is seeing more acquistion opportunities emerging as the market improves and it has a “tick box” approach to what it is looking for.
“We like different brands, we believe in the strength of brands. We like directly employed people, we are looking in the energy and environmental sectors and we are looking at geographical expansion.
“There is a better quality of acquistions crossing our desks and that is encouraging. I would be disappointed if we didn’t do something over the next 12 months,” he said, speaking after the Leeds-based group announced record half year results.
Finance director John Samuel said better acquisition opportunities were a result of improving market conditions.
“When the general markets have been slightly in decline people have been nervous about their business. Now we have generally levelled out in the economy, that down spell is over and people are feeling marginally more confident,” he said.
Mr May added: “If you failed to sell before 2008 then you may be looking now.”
He said that the company’s success was based upon successfully carrying out “small but critical tasks to people, if we respond quickly then they tend to keep us”.
The Leeds-based company, which operates in UK infrastructure markets including working at the Sellafield nuclear power station and maintaining railway lines, saw pre-tax profits increase by 7% to £4.6m on revenue that fell by £30m to £152.4m in the six months to March 31.
Its operating margin increased by almost a third to 3.4% and the company will raise its interim dividend by 5% to 1.1p.
Renew said that engineering services revenue was up 4.8% to £110.4m representing 72% of group revenue while its engineering services order book is up 14% to £261m.
Work has included recovery operations after the recent landslide at Hatfield Colliery and growing opportunities at the Sellafield nuclear site plus a contract with Network Rail to work on the historic Holme Tunnel on the main Blackpool line between Todmorden and Burnley.
Its key brands include Barnley-based engineering services firm Amco, civil engineer Seymour, infrastructure firm VHE plus Allenbuild, Walter Lilly and Britannia.
