Renew Holdings ends year ahead of market expectations

Engineering service provider Renew said in an update on Monday that it “successfully managed” inflationary pressures and supply chain challenges in the financial year just ended.

The AIM-traded firm said that as a result, there was “no material impact” on trading in the 12 months ended 30 September, which the board said demonstrated the “resilient and differentiated nature” of Renew.

As a result, the directors said they expected the group to report results for the year “marginally ahead” of market consensus.

The company's balance sheet was “strong”, with net cash as at 30 September expected to be ahead of market consensus, due to lower capital expenditure and pension costs combined with higher operating profit in the period.

“The group's engineering services order book remains strong and we continue to see good demand across our core markets which continue to trade well,” Renew said.

“Despite the uncertain economic outlook, the board looks to the year ahead with confidence with the group well-positioned to continue to benefit from the UK government's committed infrastructure spend.”

At 1146 BST, shares in Renew Holdings were up 3.33% at 589p.

Reporting by Josh White at Sharecast.com.