Renew posts record results despite pandemic

Grant Prior 2 years ago
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Infrastructure upkeep specialist Renew has posted a record set of annual results as essential maintenance work continued despite the pandemic.

Pre-tax profits were up to £32.1m for the year to September 30 2020 from £27m last time as revenue rose to £620.4m from £600.6m.

Operating margins were steady at 6.4% and Renew is debt free despite funding the £38m acquisition of highways specialist Carnell during the year.

Network Rail is Renew’s biggest customer and the company currently holds more than 50 CP6 maintenance and renewals frameworks across all disciplines, covering the entire UK rail network.

Paul Scott, Chief Executive Officer of Renew, said: “During what has been a year without precedent, I have been humbled by the way our people have risen to the challenge of continuing to deliver the essential services that support the UK’s critical infrastructure upon which we all rely, every day.

“Our priority at all times has been to ensure both the safety of our workforce and the continuous delivery of essential renewal and maintenance operations in our markets.

“The pandemic has demonstrated like never before the core defensive strengths and resilience of our high quality, low risk, value-accretive business model in providing 24/7 specialist engineering services to our clients in complex, challenging and regulated environments.

“Thanks to our differentiated and cash generative earnings model, we delivered a record trading performance, with a solid margin, strong cash flow and continued EPS growth.

“We continue to focus on bolstering our performance with highly selective, value enhancing acquisitions to strengthen our presence in key markets.

“Following the acquisition of Carnell earlier in the year, which facilitated our entry into the strategic highways network, I am very pleased with its positive contribution to the Group’s results.

“The growth prospects within our industry are highly attractive, driven by non-discretionary Government spending in relation to UK infrastructure, a greater focus on sustainability and renewable energy, population growth, technological innovation driving a shift towards digital transport networks and smart cities, along with increased regulation.

“Renew’s businesses operate in markets underpinned by sustainable, long-term structural growth dynamics and committed regulatory spend.

“Trading in the new financial year has started well and we are ideally positioned to play a significant role in the long-term recovery opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding the economy over the next decade and beyond.”

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