Building redundancies cost Renew £3.6m

Grant Prior 13 years ago
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Renew spent £3.6m on redundancy and restructuring costs this year as the firm pulled-out of building in the north of England.

The move was part of Renew’s strategy to refocus as an engineering services group supporting infrastructure projects.

The switch has paid off with turnover up 23% to £356.7m for the year to September 30 and pre-tax profits up to £8.1m from £4.6m last time.

The period saw the acquisition of engineering services business Amco which helped turnover in that division increase by 39% to account for nearly half of group revenue.

The specialist building division – containing Allenbuild, Walter Lilly and Britannia – saw revenue increase to £178.9m from £163.1m with operating profit flat at £1.9m.

But order books are down at the division as Renew continues to scale down building and increase engineering services where orders were up 119%.

Renew pulled-out of building in the North earlier this year and the accounts reveal the cost of redundancies and restructuring during the last 12 months of £3.68m.

The group now has three specialist building divisions in the South concentrating on new build social housing, high quality residential and retail.

Chief executive Brian May said: “These markets, in which we have extensive experience and expertise, provide sustainable opportunities for the future.”

The growing engineering services division targets the energy, environmental and infrastructure markets through refurbishment and maintenance contracts.

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