Last checked at (Sharecast News) - Renew Holdings on Tuesday reported a surge in annual profit after a full contribution from its QTS rail services acquisition.
The engineering services firm booked an 83% rise in pre-tax profit to £27m as revenue rose 11% to £599.9m after new contract wins and renewals in target markets. A final dividend of 7.67p a share was declared for a total of 11.5p, up 15%.
Engineering services revenue jumped 21% to £564.5m, boosted by QTS, a specialist rail services provider acquired last year, while the unit's order book grew 6% to £542m.
Meanwhile, turnover from the smaller specialist building division was slashed by 51% to £36.1m, in line with expectations.
Shore Capital analysts said the stock's current rating "fundamentally undervalues the business" possibly due to its association with contractors that had a "much higher risk profile, in our view, due to the relative size and low-volume of their contracts compared to Renew's".
"We maintain our 'buy' recommendation but we are unlikely to make significant changes to our 2020 forecasts," the broker said.
27 Jan 2016 12:53
Renew Holdings year-end order book up 15%
(ShareCast News) - Renew Holdings' order book was up by 15% at the end of December, according to a trading update issued on Wednesday. The engineering services company said trading in the first quarter met its expectations and order book for the rest of the year remains healthy. Chairman Roy Harris
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