Renew to close its C&A Pumps business

The Leeds-based group said in a trading update today it expects its operating profit before exceptional items and amortisation will be in line with market expectations for the year. Ahead of the publicaion of its annual results, Renew said the group incurred exceptional redundancy and restructuring costs in the second half of the year ended 30 September 2012 of £1.3m.

It said the board has decided to close the business of C&A Pumps with immediate effect, adding that it has become “increasingly difficult for this small business to trade profitably” following changes to water industry framework arrangements.

C&A Pumps, a provider of mechanical and electrical services, together with pump sales and repair, metal fabrication and health and safety consultancy and training, is based in Bowburn, just outside the city of Durham.

Renew said a trading loss of £300,000, together with £300,000 of redundancy costs and £1.4m of non-cash asset write downs including £900,000 of goodwill, will be incurred.

The firm said it has “strengthened its position” at Sellafield where it remains the largest mechanical and electrical contractor. It said contract extensions, which were awarded in September, have increased its secured workload at the site by more than £40m.

Renew said the acquisition of Amco in February 2011 “accelerated the group’s strategy of developing an engineering services business supporting sectors critical to UK infrastructure”. The company also announced the appointment of Paul Scott, managing director of Shepley Engineers, to the role of engineering services director of Renew.

The group’s annual results will be announced on November 27.