1st Oct 2024 10:20
(Alliance News) - Engineering firm Renew Holdings PLC on Tuesday said it expects to report annual earnings ahead of expectations, hailing "strong organic growth".
Shares rose 7.6% to 1,132.00 pence each in London on Tuesday morning.
The Leeds, England-based company, which is involved in the maintenance and renewal of critical infrastructure networks in the UK, expects revenue and operating profit to be ahead of market consensus for the the financial year that concluded on Monday.
It puts consensus for adjusted operating profit at GBP70.1 million and revenue at GBP1.08 billion. In financial 2023, it reported revenue of GBP960.9 million and adjusted operating profit of GBP63.6 million.
"Operating margins are expected to be within the range previously guided (6%-7%), reflecting Renew's resilient and differentiated business model," it added.
"The group expects to report strong organic growth in the year and the momentum into the new financial year is underpinned by a robust order book which benefits from the UK's committed infrastructure spending programmes and to client's long-term operating budgets."
The engineering company said it is "well positioned in its core markets", giving it confidence for the new financial year.
Renew provides services such as fencing and civil asset management for the rail sector, and drainage, lighting and electricals services to National Highways, a government-owned motorways and A roads maintenance offering.
Renew reports annual results on November 26.
By Eric Cunha, Alliance News news editor
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