Renew to focus on specialist engineering

The Aberford-based group, which has been shifting its focus towards engineering in recent years, said it would leave the non-specialist and discretionary public spending building markets when its commitments have been completed.

The firm also said first-half results are expected to be satisfactory and that it should meet full year market expectations - before the impact of exceptional redundancy and restructuring costs.

Last month Renew said it would buy Barnsley-based Amco, a specialist engineering company, in a deal worth £19.8m.

Today Renew said it will incur an H2 exceptional charge of up to £3.5m for redundancy and restructuring costs.

The restructuring will reduce 2012 building revenue by about £60m with no impact on group profits, it added.

It also said its specialist building activity will be based in the south in future as it concentrates on the “robust” new build social housing, upmarket residential and retail markets.

“Our business in these sectors is well secured with good forward visibility,” it added.

Its withdrawal from certain public sector programmes does not include the £44m Kirklees Waterfront Campus Project, which it said it proceeding well and is due to complete in July 2012.

It also said the integration of Amco is progressing in line with expectations.