Renew expects FY results to be 'materially ahead' of forecasts

Engineering services group Renew said on Friday that trading had been strong since the publication of its interim report, with full-year results now expected to be "materially ahead" of market forecasts.

Renew anticipates adjusted operating profits to be between £39.0m and £40.0m, reflecting the group's defensive qualities, resilience and the implementation of numerous mitigation measures in response to the Covid-19 pandemic.

The AIM-listed firm said engineering activities in its rail, infrastructure and environmental markets had remained "robust and reliable" throughout the coronavirus outbreak after the UK government designated the majority of the group's activities as "critical" to the Covid-19 response.

In energy, all site activities at Renew's Sellafield and Springfields assets were steadily being re-mobilised after their shutdown in March. However, the company said it does not expect to be fully operational at either site until the second half of the next financial year.

Renew said: "Our proven resilience and the reliable long-term nature of the UK infrastructure markets in which we are deeply embedded gives the board confidence in our strategy and the continued success of the group."

As of 0950 BST, Renew shares were up 7.89% at 458.0p.