Renew delivers record results as annual revenues top £1bn

Infrastructure engineering services firm Renew on Tuesday delivered record full-year results in line with recently upgraded forecasts, with revenues growing by almost a fifth, as the company reported a confident outlook.

The company, which announced in early October that revenues, operating profits and net cash would be ahead of market consensus at the time, said revenues totalled £1.06bn for the year ended 30 September, up 19.1% on the year before.

Adjusted operating profits were up a lesser 13.8% at £70.9m, as the adjusted operating margin fell to 6.7% from 7.0% previously. The company finished the year with net cash of £25.7m, down 28% on the year before.

The full-year dividend totalled 19p per share, up 5.6% from the 18p paid out last year.

The company, which completed three acquisitions during the period under review and another since the year-end, said it has a "good M&A pipeline supported by a strong balance sheet".

Looking ahead, Renew said it has excellent revenue visibility for the coming year and beyond with 85% of operations and maintenance contracts already secured and a strong pipeline of additional opportunities, giving it overall revenue visibility of 75%.

"I am very pleased to report we have delivered another excellent performance in FY24 with significant organic and acquisitive growth. We have further strengthened our order book and expanded our service offering, strengthening the foundations of our business," said chief executive Paul Scott.

"We view these results very positively, extending the company’s excellent long-term record of consistent earnings growth," said Shore Capital in a research note. "Management has an outstanding record, in our view, of making value accretive acquisitions, so we are pleased that a good pipeline of opportunities was reported this morning."

The stock was down 1% at 573p by 1001 GMT.