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Renew posts record profit and turnover in its full-year results

Engineering firm Renew has posted record profits and turnover for the year to September 2014, boosted by major rail and energy projects.

The group posted revenue and profit growth of 64 per cent compared to a year earlier.

Revenue grew to £464.5m in 2014, up from £282.7m a year earlier, while operating profit rose to £16.4m, up from £10m in 2013.

Renew’s order book was up 21 per cent compared to 2013, and stood at £439m as of September 2014, up from £364m in the previous year.

The group’s rail business posted the largest growth during the past year, boosted by several large Network Rail contracts, including the Dawlish sea wall repair (pictured) and other emergency repair work, which in total added non-recurring revenue of £64.7m. Following this, the group has been appointed to seven Network Rail infrastructure frameworks worth a total of £450m over the next five years.

Elswhere, the group’s engineering services arm, which accounts for 80 per cent of the group’s total revenue, saw operating profit grow by 54 per cent over the past year, rising to £16.3m, compared to £10.6m a year earlier.

Specialist building, which is largely focussed on the high-end residential market in London and the South East, posted revenue growth of 62 per cent and operating profit growth of 69 per cent, rising to £2.2m, compared to £1.3m a year earlier.

During the year, the group acquired two companies - Clarke Telecom Ltd, a wireless telecoms infrastructure company, for £17.1m; and Forefront Group Ltd, a gas infrastructure provider, for £14.8m.

Renew chairman RJ Harrison said: “Renew enters the 2014/15 financial year in a strong position having made excellent progress in expanding its position as a leading provider of engineering support services with strong organic growth coupled with two acquisitions into new markets.

“Our record order book of £439m gives the board confidence for the next financial year. The board’s growth strategy for its Engineering Services business is proven and continues to deliver shareholder value which is reflected in the 39 per cent increase in dividend.

“The board has set targets for group revenue in excess of £500m and a group operating margin of at least 4.5 per cent within the next three years.”

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