REG - Renew Holdings PLC - Trading Update

Renew HoldingsAnnouncement

24/01/2025 07:00

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RNS Number : 5288U  Renew Holdings PLC  24 January 2025

24 January 2025

Renew Holdings plc

 

("Renew" or the "Group" or the "Company")

 

Trading Update

 

Renew (AIM: RNWH), the leading Engineering Services Group supporting the
maintenance and renewal of critical UK infrastructure, provides the
following trading update for the year ending 30 September 2025 ahead of its
Annual General Meeting on 27 January 2025.

As indicated in the Group's final results announced on 26 November 2024,
trading within the rail sector has been impacted by the slow start to the
Control Period ("CP7"), which commenced in April 2024. This
lower-than-expected level of activity has continued in recent weeks, as has
been widely reported. Consequently, trading in the Group's Rail sector is now
behind management expectations.

Given the ongoing challenges with delay and deferment in our Rail activities
and more recent uncertainty over timing of the commencement of a number of
renewals programmes, the Board anticipates full year trading will be below
market expectations(1) albeit adjusted(2) operating profit is still expected
to be ahead of prior year (2024: £70.9m). Having operated in this sector
through previous control period transitions, we believe that this situation
will normalise as we move through the cycle. Our clients remain committed to
record levels of expenditure in renewing and maintaining the national rail
network to satisfy their regulatory obligations.

 

In Environmental, activity levels in Water are ahead of expectations and we
anticipate strong momentum through the transition to the new control period
AMP8 which commences in April 2025. In the period we were appointed by
Affinity Water to two new major 5-year frameworks, further strengthening our
position ahead of the next control period. Forecast trading in our Energy and
Infrastructure sectors remains in line with management expectations.

 

The integration of our recent acquisitions, Excalon and Full Circle is
progressing well and trading at both is forecast to be in line with
expectations for the full year. In line with our strategy, the Group continues
to review an active acquisition pipeline.

 

Through further framework success, the order book is at a record level,
providing long-term visibility and at 31 December 2024 it was £905m (31 Dec
2023: £795m Engineering Services).

 

The Company will provide a trading update for the six months ending 31 March
2025 on 1 April 2025.

 

Ends.

 

(1)Company derived consensus for adjusted revenue is £1,150.6m, adjusted
operating profit of £79.1m and pre-IFRS 16 net cash of £4.0m.

(2) Renew uses a range of statutory performance measures and alternative
performance measures when reviewing the performance of the Group against its
strategy. Definitions of the alternative performance measures, and a
reconciliation to statutory performance measures, are included in the 2024
Annual Report and Accounts.

 

For further information, please contact:

 

 Renew Holdings plc                                      www.renewholdings.com
 Paul Scott, Chief Executive Officer                     via FTI Consulting
 Sean Wyndham-Quin, Chief Financial Officer              020 3727 1000

 Deutsche Numis (Nominated Adviser and Joint Broker)     020 7260 1000
 Stuart Skinner / Kevin Cruickshank / Will Wickham

 Peel Hunt LLP (Joint Broker)                            020 7418 8900
 Ed Allsopp / Pete Mackie / Charlotte Sutcliffe

 FTI Consulting (Financial PR)                           020 3727 1000
 Alex Beagley / Tom Hufton / Amy Goldup / Matthew Young  Renew@fticonsulting.com

 

 

About Renew Holdings plc

 

Renew is a leading UK Engineering Services business, performing a critical
role in keeping the nation's infrastructure functioning efficiently and
safely. The Group operates through independently branded subsidiaries across
its chosen markets, delivering non-discretionary maintenance and renewal tasks
through its highly skilled, directly employed workforce.

 

Renew's activities are focused on Engineering Services in the key markets of
Rail, Infrastructure, Energy (including Wind and Nuclear) and Environmental
which are largely governed by regulation and benefit from non-discretionary
spend with long-term visibility of committed funding.

 

For more information please visit the Renew Holdings plc website:
www.renewholdings.com (http://www.renewholdings.com)

 

 

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