(Alliance News) - Engineering services firm Renew Holdings PLC on Tuesday reported a near doubling of annual profit, while its outlook is confident.
Renew's pretax profit for the 12 months to September came in at GBP27.0 million, nearly double the GBP14.7 million a year prior. Revenue was up 11% to GBP600.6 million.
Leeds-based Renew said growth came both organically and from a full year's contribution from computer security firm QTS, which was bought in May 2018 for GBP80 million.
It is paying a final dividend of 7.67 pence, taking the year's total to 11.5p, up from 10.0p the year before.
Engineering Services, Renew's core business, delivered 21% revenue growth to GBP564.5 million, with adjusted operating profit also rising 21%. Renew said the "excellent" performance derived from the contribution of QTS as well as "strong momentum" at the end of the rail control period five.
Rail control periods are five-year periods set out by Network Rail outlining plans for the UK rail network. The new period, control period six, will see Network Rail spend GBP48 billion, and Renew is an "major provider" of services across the UK.
The Engineering Services order book stood at GBP542 million at the end of the year, up 6.3% from a year before.
"The group's focus remains on those markets where non-discretionary spending programmes exist to maintain critical infrastructure. These markets have excellent long-term prospects with growth driven by regulatory requirements," said Chair David Forbes.
"The group has strengthened its position in markets which benefit from visible funding. Our multidisciplinary engineering services are closely aligned with the requirements of the sustained investment in these markets which provides the board with confidence in future growth," Forbes added.
Renew shares were 4.7% higher on Tuesday morning in London at 399.76p each.
By George Collard; georgecollard@alliancenews.com
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Renew Holdings (RNWH)