4th Sep 2020 10:07
(Alliance News) - Renew Holdings PLC on Friday said it anticipates its results for its current financial year to be "materially ahead of current market expectations".
The stock was trading 9.1% higher at 463.20 pence each on Friday morning in London.
The engineering services firm stated trading since May has been strong as it forecast full year adjusted operating profit of between GBP39 million to GBP40 million. For comparison, adjusted operating profit for its financial year ended September 30, 2019 was GBP38.3 million.
"This improved forecast result is reflective of our defensive qualities, resilience and the implementation of numerous mitigation measures that have proven to be extremely effective in responding to the challenges of Covid-19," the firm said.
Renew added engineering activities in its Rail, Infrastructure and Environmental markets remained robust and reliable throughout the pandemic as the UK government designated the majority of its activities as critical to the Covid-19 response.
Turning to its Energy division, all activities at Sellafield and Springfields sites were suspended in March. While activities are being re-mobilised, the company does not expect to be fully operational at these sites until the second half of financial 2021.
Leeds-based Renew said the integration of fellow engineering firm Carnell Support Services Ltd - acquired in January 2020 for GBP38 million - is complete and the business is trading in line with expectations and unaffected by Covid-19.
Looking ahead, it said: "Our proven resilience and the reliable long-term nature of the UK infrastructure markets in which we are deeply embedded gives the board confidence in our strategy and the continued success of the group."
By Ife Taiwo; [email protected]
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