Last checked at 1 Oct 2012 07:00
Renew Holdings plc
("Renew" or the "Group")
Trading Update
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces an update on trading following the end of its financial year on 30 September 2012.
The Board confirms that Renew traded satisfactorily during the second half of the year and expects that its operating profit before exceptional items and amortisation will be in line with market expectations for the year. To deliver further business efficiencies, the Group incurred exceptional redundancy and restructuring costs in the second half of the year ended 30 September 2012 of £1.3m.
Additionally, the Board has decided to close the business of C&A Pumps Ltd with immediate effect. It has become increasingly difficult for this small business to trade profitably following changes to Water industry framework arrangements in AMP5. C&A will be accounted for as a Discontinued Business in the year to 30 September 2012 and a trading loss of £0.3m, together with £0.3m of redundancy costs and £1.4m of non-cash asset write downs including £0.9m of goodwill, will be incurred.
The acquisition of Amco in February 2011 accelerated the Group's strategy of developing an Engineering Services business supporting sectors critical to UK infrastructure. As a result, Renew has now been reclassified to Business Support Services within the Industry Classification Benchmark categories of the London Stock Exchange.
In order to maximise the growth opportunities available to Renew in Engineering Services, the Board has been considering how best to make the most of the benefits of our locally focused and branded business approach to offer a full range of integrated services to our growing list of major clients. As a result, the Board is pleased to announce the appointment of Paul Scott, Managing Director of Shepley Engineers Ltd, to the role of Engineering Services Director of Renew. Paul will report to the Board of Renew through Brian May, Chief Executive.
The Board is also pleased to announce that the Group has strengthened its position at Sellafield where it remains the largest mechanical and electrical contractor. The scope of our works programme on Evaporator D, the largest nuclear project in the UK today, has been increased substantially. We have also secured a further six month extension to the long standing Multi Discipline Site Wide framework. These contract extensions, which were awarded in September, have increased our secured workload at the site by over £40m.
The Group's annual results will be announced on Tuesday 27 November 2012.
Enquiries:
Renew Holdings plc | Tel: 0113 281 4200 |
Brian May, Chief Executive | |
John Samuel, Group Finance Director | |
N+1 Brewin | Tel: 0845 213 4730 |
Sandy Fraser / Richard Lindley | |
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 |
About Renew Holdings plc
Engineering Services, which now accounts for nearly 60% of Group revenue and over 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.
Specialist Building focuses on New Build Social Housing, High Quality Residential and Retail markets in the South of England.
The Group has 75 framework agreements; 62 of these are in Engineering Services with 43 of those being non-discretionary in nature.
For more information please visit the Renew Holdings plc website: www.renewholdings.com