Further growth for Renew Holdings as new boss steps up

Engineering services company Renew Holdings '‹reported further growth in revenue and profit for the year to September 30 and said full year results will be in line with market expectations'‹.

Paul Scott, the new CEO of Renew Holdings

The Leeds-based group made the announcement as it welcomed new CEO Paul Scott who replaces Brian May​, who retired as chief executive last Friday.

The group said: “The board would like to thank Brian for his outstanding leadership of Renew over the last 11 years, during which he transformed the group from a loss making building contractor into a leading business in engineering services and delivered an increase in market capitalisation from £17m to £229m without recourse to equity financing.”

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​​The group said that annual results for the year to September 30 will show an increase in operating margin and it also expects to report a move to a net cash position.

Analysts at Numis said in a note: “While management does not make any comment about outlook, we believe the group will be well-placed for ongoing requirement for non-discretionary work in its key markets this year and could also see some acceleration of work in the rail sector in particular as an area where there seems to be increased focus under the Tories as a pump prime at the time of the Autumn Statement.”

They added that Mr Scott is not expected to alter the strategic direction or business model of the group, which has enabled it to grown 13-fold over 11 years

without any equity funding.

​Renew will announce​ results for the year to September 30 on November 22.

​In the ​half year to March 31, the group reported record interim results and said it had a strong order book and it had already secured expected revenue for the second half by the end of May, four months before its year end. Renew increased its interim dividend by 18​ per cent​ to 2.65p.