Renew turnover tops £500m two years early

Aaron Morby 8 years ago
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Specialist engineering contractor Renew has delivered another set of record annual results on the back of rising infrastructure spending.

Group revenue increased 12% to £519.6m, delivering the firm’s five-year sales target more than two-years earlier than expected.

Adjusted pre-tax profit soared 22% to £20m, as the engineering division margin grew from 4.3% to 4.6%.

The division, which serves energy, environmental and infrastructure markets, now accounts for 85% of group revenue.

But Renew also booked a £7.3m loss due to supply chain cost rises on remaining contracts and assets left from the disposal of its social housing specialist Allenbuild to Places for People just over a year ago.

Its high-end specialist residential business Walter Lilly, which specialises major structural engineering works including extending properties below ground, continued to trade well and secured £85m of new project work over the year.

Chief executive Brian May said engineering services would continue to be a major business driver in the future.

“The Nuclear Decommissioning Authority’s expenditure continues at a £3bn per year, of which 67% is allocated to the Sellafield site in Cumbria where the majority of our work is undertaken.”

He added that Magnox had appointed Renew as the sole provider on the £30m Electrical, Controls & Instrumentation framework, which runs to 2019, across its 10 sites.

The Multi Discipline Site Works framework where Renew operates as one of three partners, has been extended for two years to early 2017 and is advertised to deliver £70m annually.

Other framework extensions during the year include the Bundling Spares, Site Remediation & Decommissioning Project and Bulk Sludge Retrievals Facility frameworks.

In gas infrastructure, iron mains replacement frameworks for National Grid and Southern Gas Networks have been slow to get going.

But May said the national programme for iron mains replacement running to 2032 offered major opportunities for Renew and was worth an estimated £1bn per annum.

 

 

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