Renew Holdings has published its half-year results, showing record order book levels contributing to a performance in line with expectations, despite rail programme delays.
The engineering services company revealed a five per cent increase in profits and an order book at £908 million (HY24: £831 million).
An ‘incredibly successful’ water sector and ‘strong progress’ in the infrastructure sector ensured the profits boost.
It said it had delivered a financial performance in line with revised expectations despite ‘unprecedented delay and deferment within certain Rail renewals programmes’ which it said were ‘specific and isolated’.
Paul Scott, Renew chief executive, said: “The past six months has been a transformational period for the business as we successfully executed against our strategy of securing routes to new growth markets and focusing our activities exclusively on engineering services.”
Key takeaways from the half-year results include an increase in revenue of 13 per cent to £569.3 million (HY24: £505.4 million).
Adjusted operating profit fell slightly by one per cent to £32 million (HY24: £32.3 million), however its operating profit increased by 13 per cent to £33.6 million (HY24: £29.7 million).
The firm’s adjusted operating margin, again fell slightly, by 0.8 per cent to 5.6 per cent (HY24: 6.4 per cent).
However, profit (before tax) rose by five per cent to £31 million (HY24: £29.5 million).
The company reported a 7.6 per cent per cent fall in adjusted earnings per share to 28.2 pence, down from 30.5 pence HY24.
Interim dividends (distribution of profits to shareholders) rose 5.4 per cent to 6.7 pence, up from 6.3 pence HY24.
Renew said the increased interim dividend reflected a resilient trading performance, cash position and record forward order book.
Its order book stands at a record £908 million (HY24: £831 million).
While its net cash (pre-IFRS16) fell sharply to £11.8 million (HY24: net debt £42.5 million) following the acquisition of onshore wind turbine maintenance firm, Full Circle Group Holding in 2024.
Renew also increased provisions to 3.5 million in September 2024 from £1.8 million in March 2024.
The move is as a result of a £663,000 contractual claims loss against development firm Allenbuild which it sold to social enterprise, Places for People in 2014.
Was this interesting? Try: Strong infrastructure services demand in mixed second quarter for Jacobs
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
