22nd May 2018 12:20
LONDON (Alliance News) - Renew Holdings PLC on Tuesday said interim profit more than halved as revenue fell 6% year-on-year, despite an increase in the order book of its largest division.
In the half-year to March end, the group reported revenue of GBP262.2 million, down 6% on 2017 at GBP281.8 million. Pretax profit for the period came in at GBP2.0 million, down from GBP5.6 million last year.
The group's Engineering Services division, which accounts for 80% of the total revenue, saw a 9% increase in order book to GBP472 million versus GBP435 million a year before. Despite the order book increase, Engineering Services revenue was down 2% at GBP221.8 million from GBP226.6 million year-on-year.
The group's Specialist Building division saw revenue drop to GBP40.5 million from GBP53.3 million in 2017. The division's order book decreased to GBP68 million from GBP82 million.
The group's order book across all divisions increased 4% to GBP540 million from GBP517 million.
The company lifted its interim dividend 11% to 3.33 pence from 3.00p last year.
"We focus on supporting the country's key infrastructure assets, providing essential engineering services through long-term framework positions. It remains the group's strategy to develop its engineering services business both organically and through selective acquisitions," Chairman David Forbes said.
"The board remains confident of delivering full year results in line with market expectations."
Renew Holdings shares were down 1.5% at 394.00p on Tuesday.
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