Renew posts record first-half results

(Sharecast News) - Engineering service provider Renew reported "record" half-year results on Tuesday, with group revenue rising 13.1% year-on-year to £414.3m.

The AIM-traded firm said its adjusted operating profit was 18.2% firmer in the six months ended 31 March at £26m, while operating profit jumped 19.3% to £22.1m.

Its adjusted operating margin was 26.9 basis points higher at 6.3%, and adjusted earnings per share jumped 14.6% to 26.2p.

The board hiked its interim dividend 17.4% to 5.67p per share, which it said reflected its confidence in the group's "resilient" trading performance, cash position and strong forward order book.

Renew said its group order book totalled £771m at the end of the period, compared to £750m a year earlier, while net debt pre-IFRS 16 narrowed to £1.2m from £16.9m over the same period.

The board said its balance sheet was de-risked further in the period, with completion of the Amco Group pension scheme buy-in.

It said second-half trading had started "well", with the directors confident of achieving full-year expectations.

"The first six months of this financial year have presented a unique set of circumstances and the group's record performance clearly demonstrates the resilient and differentiated nature of our business," said chief executive officer Paul Scott.

"Supported by the commercial terms within our frameworks, we continue to successfully manage the industry-wide material shortages and inflation challenges effectively, without any material impact on trading."

Scott said Renew's "strong" market positions, underpinned by long-term, non-discretionary spending cycles, meant the firm was "well-positioned" to take advantage of the government's pledge to invest £650bn in a green infrastructure-led recovery.

"Trading has started well in the second half of the year and we remain confident of achieving our full-year expectations."

At 0937 BST, shares in Renew Holdings were up 3.04% at 711p.

Reporting by Josh White at Sharecast.com.

Renew Holdings