26th Nov 2013 13:25
LONDON (Alliance News) - Engineering services and specialist building group Renew Holdings PLC Tuesday reported an uptick in profits for the financial year ended September 30, boosted by a strong order book, and the acquisition of Lewis Civil Engineering Limited during the year.
Renew increased its full-year dividend per share by 14% to 3.6 pence per share, as its pretax profit rose 27% to GBP10.7 million, up from GBP8.4 million the prior year.
It reported a net profit of GBP8.6 million, compared with GBP4.7 million a year earlier, after recording a GBP2.4 million loss last year from discontinued operations, including C&A Pumps Ltd, which was sold in November last year.
The group said that it increased its operating margin by 13% to 3.4%.
During the year Renew acquired Lewis Engineering Limited for a cash consideration of GBP8.2 million, including costs.
The company reported a 1% fall in full-year revenues to GBP334.6 million, down from GBP337.4 million a year earlier.
It said that its engineering services division, which now accounts for 70% of group revenue, up from 63% a year earlier, reported revenue growth of 9% to GBP232.4 million in the 12 months ended September 30.
Renew said that its engineering services order book was up 28% in the period, while its group order book rose 26% to GBP416 million.
The group said that it has returned to a net cash position of GBP2.8 million, having been in GBP5.5 million worth of net debt last year, boosted by the sale of land at Rugby, although it was later redeployed to acquire Lewis Civil Engineering.
Renew is hoping to grow group revenue to over GBP500 million, through the help of further acquisitions, as well as increase its engineering services business operating margins to 5%.
Shares in the company were trading 5.8% higher Tuesday afternoon, at 164.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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