Renew Holdings in a 'satisfactory' frame as order book looks strong

The Leeds-based group, which has been shifting its focus from construction to specialist engineering in recent years, said its order book stood at 283m at the end of 2010, compared with 200m at the end of 2009 but down on 304m at the end of September.

This figure excludes the potential boost from framework and preferred bidder opportunities.

Its main operating subsidiary in the water sector, Seymour (Civil Engineering Contractors) Ltd, was recently appointed a framework contractor by Northumbrian Water for its investment programme.

This programme offers selected contractors and consultants the chance to win work worth about 1.5bn.

The new framework agreement comes into effect from April and lasts for up to 10 years.

"Trading for the first quarter of the year has been satisfactory," the group told shareholders at its annual meeting. "Renew remains debt-free with available cash resources."

It has cash of more than 20m, giving firepower to spend on acquisitions and in November, the group reported a year of growing profits but falling revenues.

Renew said pre-tax profits after exceptional items more than trebled to 3.99m in the year to the end of September, compared with 1.17m a year earlier. Revenues were down 8.3 per cent to 290.4m, on the back of tough construction markets.

Specialist engineering now makes up about 44 per cent of the group's revenue, compared with about 15 per cent four years ago. The group's engineering work includes support and decommissioning at Sellafield nuclear plant and land remediation on former gas works for National Grid.