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Renew (AIM: RNWH) Encouraging results from a business firmly repositioned
Posted 22/11/11
The AIM quoted provider of specialist engineering services and housing announced encouraging results for the year ending 30th September 2011 in what amounted to a period of great change.
Group revenue was up 23% to £356.7m and adjusted profit before tax up 76% to £8.1m. Adjusted earnings per share, calculated prior to exceptional items and amortisation charges, was 9.6p (2010: 5.3p).
Following the acquisition of Amco Group Holdings Limited in February 2011 Renew is firmly repositioned as an Engineering Services Group supporting UK Infrastructure. Benefiting from 7 months of Amco trading revenue from Engineering Services was up 39% to £176.7m with adjusted operating profit from this segment up 78% to £7.4m.
Specialist Building revenue (New Build Social Housing, High Quality Residential and Retail markets in the South of England) increased to £178.9m (2010: £163.1m) with operating profit prior to exceptional items of £1.9m (2010: £1.8m).
The Group order book at the year end was £285m of which Engineering Services represented £179m, up 118%.
Management confirmed that Engineering Services now accounts for over 60% of on-going Group revenue and over 80% of operating profit, focusing on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
The final dividend at 2.0p resulted in a full year dividend at 3.0p equating to a yield of 4.5% at the current share price.
We particularly like the Group’s energy exposure delivered through 24 framework agreements.
This entry was posted 5 months, 4 weeks ago and was filed under Renew Holdings.
