Leeds-based engineering group Renew's full year results set to beat expectations

Engineering services group Renew today said it expects its full year results to be ahead of expectations, which is partly due to a strong performance from its rail and infrastructure division.

Renew has published an update for the stock exchange

Leeds-based Renew has published an update on trading in advance of its annual results for the financial year ended 30 September 2020 which will be announced on Tuesday 8 December 2020.

The statement said: "Trading since the announcement of our interim results has been strong and consequently the board expects the group's full year results to be materially ahead of current market expectations with adjusted operating profit forecast to be between £39m-£40m.

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"This improved forecast result is reflective of our defensive qualities, resilience and the implementation of numerous mitigation measures that have proven to be extremely effective in responding to the challenges of Covid-19."

It continued: "Our engineering activities in our rail, infrastructure and environmental markets have remained robust and reliable throughout the Covid-19 pandemic.

"The UK Government designated the majority of our activities as critical to the Covid-19 response and we have safely and proactively responded to the ongoing network demands. In energy, as previously announced, all site activities at Sellafield and Springfields were suspended in March."

Site activities are steadily being re-mobilised, although Renew does not expect to be fully operational at these sites until the second half of the next financial year.

The statement added: "We are pleased to confirm that the integration of Carnell, acquired in January 2020, is complete and it is trading in line with our expectations and unaffected by Covid-19 reflecting the strength of its market and the nature of the essential services it provides.

Cash generation continues to be "very strong" and the company anticipates reporting a net cash position at the year end, ahead of market expectations.

Renew added: "Our proven resilience and the reliable long-term nature of the UK infrastructure markets in which we are deeply embedded gives the board confidence in our strategy and the continued success of the group. "