Renew happy with the order book

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ENGINEERING services group Renew Holdings said its order book continues to grow after a “satisfactory” start to the year.

The Leeds-based company, which is predominantly focused on engineering after closing its northern construction business, said its order book was £289m at the end of 2011, up from £283m a year earlier.

Of this, £197m is engineering work, an increase of £18m on three months earlier.

Renew told shareholders at its annual meeting yesterday it has won new contracts including its first contract under the Trunk Mains Cleansing Framework with Northumbrian Water. The project starts early next month and is worth more than £5m.

The company added its Shepley Engineers subsidiary has also been appointed to a three-year framework deal to provide engineering support to the National Nuclear Laboratory at Sellafield.

Analysts at house broker Brewin Dolphin reiterated a 110p price target. Shares in Renew dipped 1.5p to 80.5p.

“Renew’s focus (is) on UK regulated markets which benefit from non-discretionary spend... and committed funding leaves it well placed to continue its record of growth in 2012 and beyond,” they said.