Renew’s first half profit rises

The specialist construction and engineering services provider, which recently acquired Amco to expand its operations, expects margins to improve steadily, and revenue and operating profit to grow.

Leeds-based Renew Holdings, whose order book increased by 16 per cent to £334m, said it would continue to look for suitable acquisitions in the engineering space.

“2011 is a transformational year for the group as it repositions itself as a specialist provider of engineering support to UK infrastructure, particularly in the fields of energy, environmental and rail,” the company said in a statement.

In March the company said it would withdraw from its non-specialist building business in the North of England after completing its existing contracts by the end of this year.

October to March underlying operating profit rose to £2.2m from £1.7m last year.

Revenue rose 12 per cent to £155.5m, while revenue in its specialist engineering division rose 24 per cent.

The company’s specialist engineering division provides construction for rail operators, land remediation services and electrical fit outs for the nuclear sector.

Renew Holdings shares, which have gained nearly 14 per cent since March when the company said it would focus on its specialist engineering division, closed at 71.5p on Monday on the London Stock Exchange.