Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces the appointment of its subsidiary, Shepley Engineers Limited ("Shepley") to a new major installation framework agreement at Sellafield. This framework, on which Shepley is the sole appointed contractor, has an indicative value of £26m over the next four years.
The appointment by the Integrated Project Team, comprising Sellafield Limited and ACKtiv Nuclear, is associated with hazard reduction within the First Generation Magnox Storage Ponds. This is a priority area within the work programme at the site which will require a broad range of multidisciplinary engineering support. This framework is in addition to the existing Multi Discipline Site Wide framework, the Decommissioning and Demolition framework, as well other major projects that Shepley is involved with at Sellafield and strengthens Shepley's position as the largest mechanical and electrical contractor at the site.
Renew can now confirm that its recently announced new framework appointments for Land Remediation contracting services for National Grid have an anticipated annual spend of over £30m. These frameworks are for an initial period of three years, commencing in January 2012, with provision for further extensions up to five years in total. These appointments comprise both of the design and build frameworks, North and South, along with the small works framework nationally.
Renew can also now add that its two previously announced hydroelectric generation framework agreements are with Scottish Water and Welsh Water. Theywill last for three years each and have a combined advertised spend of £16m over the term.
Commenting, Brian May, Chief Executive, said:
"These new framework appointments reinforce our already strong Engineering Services forward order position. The recently announced Government commitment to infrastructure funding confirms the Board's confidence that Renew's position as an Engineering Services Group supporting UK infrastructure will provide sustainable, profitable growth in 2012 and beyond."
Renew is predominantly an Engineering Services business. Thisaccounts for over 60% of on-going Group revenue and over 80% of operating profit and focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding. Renew also has a Specialist Building business which focuses on New Build Social Housing, High Quality Residential and Retail markets in the South of England.
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