(Alliance News) - Renew Holdings PLC on Tuesday reported a rise in profit in its first half as it reiterated its decision not to pay an interim dividend.
Shares in the engineering support services provider were trading 13% higher at 473.00 pence each on Tuesday afternoon in London.
For the six-month period to the end of March, Renew posted revenue of GBP313.6 million, up 4.2% from GBP301.1 million reported in the comparative period the year prior. Pretax profit was also up at GBP15.2 million, reflecting growth of 4.8%.
Adjusted operating margin was up at 6.4% from 6.1%.
By division, Engineering services - which focuses on the rail, infrastructure, energy and environmental markets - contributed revenue of GBP293.1 million while the Specialist Building division secured revenue of GBP20. 5 million.
No interim dividend was declared, compared to the 3.83p payout the year prior. In April, the company said it would withhold the dividend payout due to uncertainty regarding the extent to which the pandemic would hurt its second half.
Looking ahead, Renew Holdings expressed confidence in its outlook. It noted that 80% of its activities have continued during the crisis as they are deemed critical to the Covid-19 response, adding that it is currently working to remobilise the remaining 20% of its operations.
"Our strong trading performance and cash generation in the first half of the year, is reflective of the reliable long-term nature of the UK infrastructure markets in which we operate. The strength of the group's position in its markets and the essential nature of the work we undertake gives the board confidence that Renew remains well placed to play a significant role in the long-term opportunities that will emerge across UK infrastructure, a sector that will play an important role in rebuilding our economy," said Chair David Forbes.
The company's order book at March 31 was GBP690 million. Cash and cash equivalents was GBP31.4 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Renew Holdings (RNWH)