Renew lifts profit expectations ahead of year-end

Infrastructure engineering services provider Renew updated the market on its trading on Tuesday, reporting a continued “strong” trading performance since its interim results.

The AIM-traded firm said that had been driven by ongoing demand for its critical asset maintenance and renewals services, and continued operational progress across its diversified engineering services end markets.

As a result of that sustained positive momentum, the board said it now expected the group's full-year results to be “materially ahead” of current market expectations, with adjusted operating profit anticipated to be at least £50m, versus a current consensus forecast of £45.8m.

“Activity levels are supported by long-term regulatory spend and the positive outlook for UK infrastructure,” the board said in its statement.

“Pleasingly, the integration of the group's two acquisitions during the period - Browne and REL - are proceeding to plan, and trading is in line with management's expectations.”

The group said its order book remained strong, underpinned by its long-term framework positions, while net debt and cash generation were in line with expectations.

“Renew's differentiated, low-risk, highly cash generative business model, combined with the mission critical nature of its work and exposure to markets with long-term growth dynamics, leaves the board confident in the group's ability to capitalise on the long-term opportunities ahead.”

Renew said it would release its results for the financial year to 30 September on 7 December.

At 1213 BST, shares in Renew Holdings were up 3.66% at 822p.