27th Nov 2018 12:01
LONDON (Alliance News) - Renew Holdings PLC on Tuesday reported a drop in annual pretax profit, but a rise on adjusted basis, and said that it remains committed to continue to grow both organically and through complementary acquisitions.
The engineering services company focused on the UK infrastructure market recorded pretax profit of GBP14.7 million for the year to September 30, down 26% on GBP19.8 million in the year ago period, on a revenue of GBP541.5 million and GBP545.9 million, respectively.
The drop in annual pretax profit was attributed to GBP15.6 million of exceptional items arising from acquisition of rail contractor QTS Group Ltd, disposal of gas infrastructure business Forefront, and impairments and amortisation of assets. Exceptional costs in 2017 stood at GBP8.3 million.
Adjusted operating profit, before exceptional costs, rose to GBP31.1 million from GBP28.4 million. Adjusted operating margin stood at 5.7% versus 5.2%.
"Whilst Brexit is a source of uncertainty, our focus on non-discretionary UK infrastructure markets gives us confidence that it will not have a material impact on the financial performance of the group. After another good year, in which we have successfully renewed our framework positions, we have good momentum going into 2019 and look forward to delivering on our strategic priorities over the next 12 months," said Chief Executive Paul Scott.
The company, which provides infrastructure services to Network Rail, declared a final dividend of 6.67 pence per share, giving a total payout of 10.0p, up from 9.0p paid a year ago.
Shares in Renew were trading 4.2% lower at 359.21p each on Tuesday.
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Renew Holdings