Record results for acquisitive engineering services firm Renew

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RECORD results have been announced by engineering services business Renew.

The company, which has been making strategic acquisitions over the past few years to strengthen its business offering, has once again surpassed £500m revenue targets.

For the year ended 30 September 2016, the company returned revenues of £525.7m, up from £519m the year before.

Pre-tax profits reached £19.4m from 16,1 the year before. During the year it acquired Nuclear Decontamination Services, enabling the expansion of its capabilities on jobs such as its Sellafield contract.

Post year end, the business also acquired Giffen Holdings Limited, a £22m turnover business, in a deal worth £7m. Customers include Network Rail and London Underground, the latter of which is new to the Renew group.

This year has been one of change for the group as long standing chief executive Brian May stepped down, with Paul Scott being appointed on 30 September 2016.

Mr Scott has been with the company for 18 years and headed up both the nuclear and engineering services divisions at one time.

He said: “We’re pleased with the record results which have been driven by engineering services. What we’re reporting demonstrates really good progress towards our targets having already surpassed £500m in revenues. With margin improvement of 4.2% we’re well on the journey and this has led to earnings growth of 5% during the year.

“When you put all this together, with a strong order book and engineering services, we’ve decided to increase dividends by 14%.”

“Giffen Holdings very much compliment and do something the group does not do already in power capabilities in the sector, we have really high hopes for how this will bed in.

“Renew’s growth has always been both organic and through acquisition, but we looked at opportunities and added when there are those opportunities, focusing on our existing market areas, acquisition search, we’re busy looking at options.

“I’ve been with the group a long time so I’ve lived and helped influence it, growing the nuclear business as a managing director of the period into a leading organisation and have realised the benefits of working in structure that we have, and our shareholders are reaping the benefits of the model.

“UK infrastructure is a good place to be in the current climate, we’re hopeful of some positive news from Autumn statement but we’re in pretty safe territory. We don’t work on capital projects, we look after maintenance and renewals and these are non discretionary by nature, not optional to stop spending so that is protective, and we’ve seen no impact from Brexit whatsoever.”

R J Harrison OBE, chairman said: “Another year of record results continues the group’s progress towards achieving its published financial targets. I am particularly pleased to report the improvement in operating margin. The board is confident of delivering further growth and continued success under the leadership of our new chief executive.”