1st Apr 2020 11:30
(Alliance News) - Renew Holdings PLC on Wednesday said its first half performance was in line with market expectations, though the engineering services firm noted some disruptions to trading due to the Covid-19 outbreak.
The company said the full impact of the pandemic on its second half is uncertain but it has decided not to pay an interim dividend.
Renew said: "We remain, where safe to do so, operational across the majority of our sectors, but we are experiencing disruption in certain areas. In Rail and Highways, which account for the majority of our engineering activity, we are working closely with our public sector customers in areas designated critical to the Covid-19 response.
"In both cases there is a clear commitment and ongoing demand for our directly delivered maintenance and renewal services. Water and Telecommunications have also been designated 'critical sectors' and we remain operational here too, with key workers deployed across all network areas where we have framework contracts."
Renew work in the civil nuclear sector has been disrupted, and operations at Sellafield, Cumbria
and Springfields, in Lancashire, have been suspended.
"In total, approximately 80% of our activities are in areas deemed critical to the Covid-19 response," Renew added.
The company has frozen all hiring, deferred VAT payments and suspended the payment of its interim dividend.
Renew said: "The board believe these actions to be prudent in light of the uncertain economic outlook, notwithstanding the non-discretionary nature of much of our work and the covenant strength of our customers. Nevertheless, at this stage we are not able to quantify the impact on our full year results and consequently the board does not believe it would be appropriate to provide forward looking financial guidance until greater clarity returns."
Shares in the company were 4.8% lower at 357.91 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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