Record results for engineering group

ENGINEERING services group Renew Holdings, which mostly works on maintenance projects for rail and water infrastructure, is doing much more than merely maintaining its own performance after announcing its latest record set of figures.

In the six months to March 31, revenue increased 21% to £252.1m, of which 14% was through organic growth. Adjusted pre-tax profits kept pace, up 19% to £9.5m.

“It’s been a good start to the year,” said Renew Holdings chief executive Brian May. “It’s particularly encouraging that we have seen the continued growth of our engineering services business, up 24% in the half.

“We are not just achieving growth through acquisition, but we are organically growing the businesses we have got.”

Renew is well placed for the second half of the financial year, with expected revenue already secured, while its order book for next year – “which is calculated in a conservative way”, said Mr May – has increased by two-thirds and stands at £200m.

Revenues have grown organically in each of the last eight years, with an average growth rate of 11.5%.

The group operates in the regulated energy, environmental and infrastructure markets supporting the day to day operations of key assets including power plants, water and gas pipelines as well as the rail and wireless telecoms networks. It is headquartered in North Aberford, Leeds, and employs 1,200 of its 3,000 staff in Yorkshire.

The interim dividend was increased by 50% to 2.25p.