29th Nov 2022 11:41
(Alliance News) - Renew Holdings PLC on Tuesday said that it was well-placed for future success, as trading momentum continues following an upturn in profit over the financial year and on the recent acquisition of Ensica Group Ltd.
Renew Holdings is a Leeds, England-based engineering services group, supporting the maintenance and renewal of UK infrastructure across the rail, energy, environmental, and specialist building sectors.
For the twelve months ended September 30, the company reported pretax profit of GBP49.5 million, up 21% from GBP40.8 million a year prior.
Revenue also increased, up 7.3% to to GBP849.0 million from GBP791.0 million.
Renew Holdings attributed these results to the "core strengths" of the group, and the "resilient nature" of its differentiated, high-quality, low-risk business model.
During the period, the company secured its position as the second largest supplier of road restraint systems in the country, with the successful collaboration of AmcoGiffen and Carnell for National Highways. It also secured framework extensions in Scotland, and expanded its water client list.
Though Renew acknowledged it was not immune to ongoing market challenges, it said that trading momentum had continued into the new financial year.
In particular, it noted the post-period end acquisition of Ensica, a Cookstown, Northern Ireland-based design, engineering and construction business.
The company has bought the entire issued share capital of Ensica for a total consideration of GBP15.6 million, payable in cash. The acquisition will be funded by a combination of cash and the group's existing revolving credit facility.
Renew Holdings expects the acquisition to be immediately earnings enhancing, with forecasted sales of GBP30 million and operating profit of GBP2.1 million. The entire executive management team of Ensica will remain with the business post-transaction.
Chief Executive Officer Paul Scott celebrated the acquisition, as well as the group's final year results, in the context of ongoing macroeconomic challenges.
"The last three years have presented a unique set of unprecedented circumstances and our continued outperformance in each year illustrates the resilient nature of our differentiated, high-quality, low-risk business model. We have made good progress across all our divisions and post-period end we were pleased to welcome Enisca to the Renew family who will add new capabilities to our water business," Scott said.
"As we look ahead, we are committed to building on our strengths and will continue to leverage the combined expertise of our subsidiary businesses. Pleasingly, our positive trading momentum has continued into the new financial year and we enter 2023 with a strong order book and believe the structural growth drivers in our end markets, underpinned by committed regulatory spend, continue to provide the group with significant opportunities."
Renew Holdings proposed a final dividend of 11.33 pence, up 14% from 11.17p a year prior. This represents a full-year dividend of 17.0p per share, up 6.3% from 16.0p the previous year.
Renew Holdings shares were trading 2.7% higher at 672.50p each in London on Tuesday morning.
By Holly Beveridge; [email protected]
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