Renew turnover tops £500m two years early

Aaron Morby 8 years ago

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.



Latest news

Groundworks firm Hiretest files administration notice

Specialist worked a lot with collapsed contractor Readie
5 hours ago

Siemens Mobility to build £100m Chippenham factory

New factory will build the next-generation of rail signalling and control systems
5 hours ago

Acquisitive RSK tops £1.2bn turnover

Pre-tax losses double to £81m after year of 34 buy-outs
5 hours ago

Winners revealed for £700m new build housing deal

EN:Procure selects 27 contractors for new framework: Full list of winners
5 hours ago

Morgan Sindall seals £39m deal for Newcastle academy deal

Work on Callerton Academy job to start after two delay caused by Caledonian Modular failure
5 hours ago

GF Tomlinson edges back into profit

Midlands builder avoids staff layoffs despite revenue fall
5 hours ago

M&S wins appeal over Gove refusal to demolish flagship store

Retailer claims victory in planning row over Marble Arch building
3 days ago

Plans expand for “new city district” at Bristol airfield

Malaysian firm YTL gets green light for bigger Brabazon development
3 days ago

NG Bailey chief to step down

David Hurcomb to retire in May after 14 years at the helm
4 days ago

Hundreds to be rehoused in Aberdeen over RAAC fears

Engineers exploring whether to condemn 500 homes or carry out remedial works
4 days ago

Plan in for North London 620-bed student scheme

Student rooms and affordable homes scheme to be built in Wood Green
3 days ago

Stantec lands design role on £4bn battery factory

First main construction award due shortly on Somerset mega-project
4 days ago

Utilities and civils specialist Ferns returns to profit

Kent-based firm grows to £81m revenue as telecoms work takes off
3 days ago

Go-ahead for 316 bed Stratford student scheme

Construction to start by end of year on site next to Pudding Mill Lane station
3 days ago

Equans suffers £146m loss and quits new build housing

Losses hit £99m on housing association new build work
4 days ago

Job cuts at modular house builder TopHat

Offsite housing specialist acts in response to "challenging market"
4 days ago

Graham wins £85m Milton Keynes Lakes Estate revamp

Enabling works start ahead of building 200 council homes
4 days ago

Go-ahead for London’s largest estate £1bn rebuild

Spring start for first job at Stratford's Carpenter Estate scheme
5 days ago

Costain trials electric vans on major civils sites

Green vans meet "tight budgetary requirements" in pilot scheme
5 days ago

Green light for major mixed-use scheme in Ealing

Scheme will provide 10,915 sq ft of industrial workspace alongside 140 new homes
4 days ago

Taylor Wimpey sees tender inflation fall to 1%

House builder retenders site work as build costs slide
5 days ago

Careys back in profit after £47m turnaround

Contracting division back in profit ahead of three-year growth plan
6 days ago

Rye Demolition goes into administration

Another specialist contractor goes under
5 days ago

Historic breakthrough for HS2’s longest tunnel drive

TBM Florence ends her 10 mile journey under the Chilterns
6 days ago

Volumetric builder Tide seals deal to start London tower

32-storey North Acton tower will consist of 462 co-living units
5 days ago

Costain moves HQ to London’s Can of Ham

Contractor makes return to London from Maidenhead base
6 days ago

Former Keltbray highways MD joins McAlpine

Vip Gandhi takes lead role at Transport division
6 days ago

Willmott Dixon exits stage left from Essex theatre contract

Contract re-tendering shines spotlight on growing schism between contractors and clients
6 days ago

Purpose build student schemes to surge again

Unite assembles record £1.3bn pipeline as fall in HMO supply boosts PBSA sector
6 days ago

Bidding starts for £1.4bn Midlands Rail Hub Alliance

Alliance will deliver upgrades to rail lines and stations around Birmingham and nearby towns
6 days ago

Contractor services