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21 Aug 2013 07:00
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21 August 2013
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Renew Holdings plc
("Renew" or the "Group")
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Exceptional Items in 2013 Results
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Exceptional Items in 2013 Results
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The Board is announcing three material exceptional items which will impact the Group's results for the year ending 30 September 2013. These comprise the sale of land in the UK, the write down of land assets held in the USA and a provision in respect of previously closed Building businesses. Details of these items are set out below.
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The combined impact of these items is that the Group will recognise an exceptional net gain before taxation of Β£1.3m in its 2013 results with the receipt of Β£11.0m of cash. The Group will use this cash to eliminate short term borrowings used to finance its recent acquisition of Lewis Civil Engineering Limited and will retain the balance for general corporate purposes. The Board anticipates that the Group will show a net cash position at 30 September 2013.
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Land Assets
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The Board is pleased to announce that it has sold 71 acres of land near Rugby for employment land use for a net sum after overage payments of Β£11.0m resulting in an exceptional profit of Β£9.4m. The Board anticipates that tax on this profit will be fully relieved by brought forward losses.
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In the USA, the Group has 3 remaining property assets where delays due to economic conditions have led to detailed planning and zoning agreements expiring. Outline permissions remain, however forthcoming changes to state and county regulations will require new applications to be made with the expectation of reductions in allowable building density. The Board commissioned an independent review of the Group's US property assets and has decided to write down the carrying value of these assets in light of these new requirements and current market conditions by Β£5.2m to Β£2.7m.
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Closed Building Businesses
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Following the previous closure of certain regional Building businesses, the Board has decided to make an exceptional provision of Β£2.9m against certain contract costs which are expected to be unrecoverable. These costs, which have already been expended, are due primarily to the insolvency of certain subcontractors.
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Current Trading
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Current trading is in line with market expectations and the Board expects to issue a further statement on Monday 30 September prior to the announcement of the Group's preliminary results for the year ending 30 September 2013 on Tuesday 21 November 2013.
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Enquiries:
Renew Holdings plc | Tel: 0113 281 4200 |
Brian May, Chief Executive | |
John Samuel, Group Finance Director | |
Numis Securities Limited | Tel: 020 7260 1000 |
Stuart Skinner (Nominated Adviser) | |
James Serjeant (Corporate Broker) | |
Walbrook PR | Tel: 020 7933 8780 |
Paul McManus (Media Relations) | Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com |
Paul Cornelius (Investor Relations) | Mob: 07827 879 496 or paul.cornelius@walbrookir.com |
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About Renew Holdings plc
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Engineering Services, which now accounts for over 70% of Group revenue and 80% of operating profit, 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.
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Specialist Building focuses on the New Build Affordable Housing and High Quality Residential markets in the South of England.
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For more information please visit the Renew Holdings plc website: www.renewholdings.com
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