Renew exits specialist building market

Engineering services company, Renew, has exited the specialist building market, in a business move it hopes will boost group operating margins. 

In a company statement, issued this morning, the AIM-listed business announced the sale of Walter Lilly & Co. Limited, its only remaining specialist building business, for an unspecified cash value.  

The buyer, Size Holdings Limited, a provider of premium quality construction, specialist crafts and maintenance services, will assume any ongoing liabilities relating to Walter Lilly as part of the agreement.  

Renew said it wants to concentrate on specialist engineering activities, delivering maintenance and renewals programmes to end markets that benefit from long-term, non-discretionary funding schemes. 

Following the recent acquisition of utilities infrastructure specialist, Excalon, Renew added it wants to strengthen its position in long-term growth markets, as part of the group’s end-market strategy. 

Renew purchased Excalon Holdings Limited for £26 million in June this year, allowing it to expand into the electricity transmission and distribution sector. 

The sale of Walter Lilly follows the recent release by Renew of its trading outcomes for the year to 30 September 2024, in which it expects to turn in adjusted revenue of more than £1 billion, adjusted operating profit of £70.1 million and net cash value of £22.1 million. 

“The group expects to report strong organic growth in the year and the momentum into the new financial year is underpinned by a robust order book which benefits from the UK’s committed infrastructure spending programmes and to client’s long-term operating budgets,” said Renew. 

Speaking to the sale of Walter Lilly, Renew chief executive officer, Paul Scott, said: “I would like to thank all the staff of Walter Lilly for their dedication and commitment over many years of service to the group. I wish them well as they embark on a future under new ownership.” 

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