24th Nov 2015 12:58
LONDON (Alliance News) - Engineering services company Renew Holdings PLC Tuesday raised its shareholder payout for its recently ended financial year, reporting a rise in pretax profit as it hit its revenue target ahead of schedule.
For the 2015 financial year to end-September the company reported a pretax profit of GBP16.1 million, up from GBP13.1 million a year before, as revenue rose to GBP519.6 million from GBP464.5 million.
In 2014 the company had set itself targets for its 2017 financial year to produce revenue of over GBP500 million, an operating profit margin ahead of exceptional items and amortisation of 4.5% and growth in earnings per share of at least 40% from the reported level of 20.8 pence in 2014.
It reported earnings per share of 26.03 pence for the 2015 financial year on this basis, up 35% from its level in financial 2014.
Signalling confidence, Renew proposed a final dividend of 4.75 pence per share, which takes its total dividend for the year to 7.0 pence, up 40% from 5.0 pence a year before.
In its engineering services segment, revenue rose 15% to GBP440.5 million from GBP382.5 million a year before, and made up 85% of its total revenue.
The company said that it will continue growing its engineering services business both organically and through selective acquisitions and that in "recent weeks" it has seen a number of good quality potential acquisitions.
"With an 11% improvement in adjusted group operating margin to 3.9% and a 25% increase in adjusted EPS in these results, the board is confident that Renew is on track to deliver these strategic targets by 2017," said Chairman Roy Harrison in a statement.
Shares in Renew were up 5.9% at 359.92 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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