REG - Renew Holdings PLC - Half-year Report
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RNS Number : 3499I Renew Holdings PLC 13 May 2025
13 May 2025
Renew Holdings plc
("Renew" or the "Group" or the "Company")
Half-year Report
Strategic progress delivered and first half performance in line with
expectations positioning the Group well for future growth
Renew (AIM: RNWH), the leading Engineering Services Group supporting the
maintenance and renewal of critical UK infrastructure, announces its interim
results for the six months ended 31 March 2025 ("the period").
Financial Highlights
Six months ended 31 March 2025 HY25 HY24 Change
(Restated)
Group revenue £569.3m £505.4m +13.0%
Adjusted operating profit £32.0m £32.3m -1.0%
Operating profit £33.6m £29.7m +13.0%
Adjusted operating margin 5.6% 6.4% -0.8%
Profit before tax £31.0m £29.5m +5.0%
Adjusted earnings per share 28.2p 30.5p -7.6%
Interim dividend 6.7p 6.3p +5.4%
( )
· Group revenue increased 13% to £569.3m driven by our diversified end market
exposure and the consistent demand for our mission-critical services.
· As guided in our Trading Update on 24 January 2025, adjusted operating profit
remained flat during the first half of the year due to the delay and deferment
within certain Rail programmes.
· Pre-IFRS16 net debt position of £11.8m as at 31 March 2025 (HY24 net cash:
£42.5m), following the acquisition of Full Circle in October 2024.
· Group order book development continues at record levels to £908m (HY24:
£831m).
· Increased interim dividend reflects management's confidence in the Group's
trading performance, cash generation and forward order book visibility.
Operational Highlights
· Exited Specialist Building in October 2024; now a pureplay engineering
business.
· Acquisition of Full Circle in October 2024, with integration progressing well,
significantly strengthening Renew's position in the growing renewable energy
market.
· In Water, we now work for 13 of the UK's water companies, positioning us well
to capitalise on the significant opportunity in this sector.
· In Transmission & Distribution, several of our collaborations including
the AGE Joint Venture between AmcoGiffen and Excalon, and the partnership
between Envolve and Excalon have been awarded key positions on National Grid
frameworks, underscoring our expertise in delivering critical infrastructure
and the strength of our combined offerings.
Current Trading & Outlook
· In Water, following an incredibly successful AMP7 control period, we have
entered AMP8, in our strongest position yet. The opportunity within this
sector is significant with the total addressable market for AMP8 having
increased 94% to £45 billion.
· We have experienced transitional challenges through previous framework cycles,
but the ongoing trading conditions in Rail are specific and isolated. Looking
ahead, we fully anticipate the stringent regulatory drivers in this sector
will compel the execution of the critical planned renewals work bank across
the network.
· We have seen consistent momentum in Infrastructure and our Highways division
expects the budget for the Strategic Roads Network in the next Roads
Investment Strategy (RIS3) funding cycle to be significantly greater than that
of RIS2 (£4.3bn).
· In Energy, our strategy to enter new verticals and diversify our routes to
market has been extremely successful and, with a total annual addressable
market of c.£9.2 billion, we continue to see significant opportunity in this
sector.
· Given the mission-critical nature of our services and our record order book,
bolstered by our diversified and resilient business model, we remain uniquely
positioned to capitalise on the significant growth opportunities in each of
our end markets. As a result, the Group remains confident in its ability to
navigate current headwinds and deliver against revised full year expectations.
· We continue to have an active M&A pipeline guided by a well-established
criteria and further supported by robust acquisition processes and a strong
balance sheet.
Paul Scott, CEO of Renew, commented:
"The Group has delivered a financial performance in line with revised
expectations. To have achieved this, despite unprecedented delay and deferment
within certain Rail renewals programmes, serves to demonstrate the resilient
and increasingly diverse nature of our business model.
"The past six months has been a transformational period for the business as we
successfully executed against our strategy of securing routes to new growth
markets and focusing our activities exclusively on Engineering Services. I am
pleased to welcome Full Circle to the Group which operates in the exciting,
fast growing, Renewable Energy sector. Our increasingly diverse portfolio
across our four pureplay engineering sectors and the increasingly impactful
collaboration between our brands further enhances the resilience of our model.
"Renew's foundations have never been stronger in terms of the breadth of our
service offering, our secured new and existing frameworks and our
corresponding record order book. As we enter the second half of the year, we
are well placed to deliver on our ambitious long term growth strategy. As a
result, the Group remains confident in its ability to deliver against revised
full year expectations, which are ahead of the prior year.
"On behalf of the Board, I extend my sincere gratitude to all our teams for
their hard work, commitment, and professionalism in delivering excellent
service for all our clients."
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
Numis Securities Limited (Nominated Adviser and Joint Broker) 020 7260 1000
Stuart Skinner / Kevin Cruickshank / William 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 (mailto:Renew@fticonsulting.com)
Renew HY25 Results
Chief Executive Officer's Review
Strategic progress and diversified end market exposure underpins first half
performance
The Group has delivered a financial performance for the first six months of
the financial year in line with its revised expectations. To have achieved
this, despite unprecedented delay and deferment within certain Rail renewals
programmes, serves to demonstrate the resilient and diverse nature of our
business model.
In the last twelve months, we successfully executed a number of strategic
objectives including the disposal of Walter Lilly (October 2024) and the
acquisitions of Excalon (June 2024) and Full Circle (October 2024), marking a
transformational period for our business. As a result, we are now a pureplay
engineering services business with access to new, attractive, complementary
and high-growth sectors within the renewables and electricity distribution and
transmission markets.
During the period, we have also achieved a number of milestone successes
across our business divisions and we remain uniquely positioned to capitalise
on the significant growth opportunities in each of our end markets,
underpinned by the mission-critical nature of our services.
As announced in January 2025, the Rail sector has seen a slower than expected
start to the new control period (CP7), which began in April 2024. However,
despite the deferment of a number of renewals programmes, we are seeing
increasing demand for reactive and planned maintenance services and we
continue to trade in line with our revised expectations. Network Rail remains
committed to its £45.4 billion CP7 investment, reflecting a 10% increase from
the previous control period. Within our Rail addressable market, which grew 9%
to £31.9 billion, key framework wins have positioned us more strongly than
ever as we entered this latest control period. Whilst we remain cautious, we
were pleased with recent press commentary from our principal client(1),
reiterating its commitment to investment in renewal programmes, with the
second year of the funding cycle expected to be significantly smoother. Our
business continues to provide coverage across all five of Network Rail's
devolved regions and we remain focused on further strengthening our position
as a trusted partner to the network for the duration of this control cycle and
beyond.
In Environmental, activity levels in Water remain ahead of expectations. The
AMP7 control period cycle was incredibly successful for Renew and we have
entered AMP8, which commenced in April 2025, in our strongest position yet.
With 94% growth in our total addressable market to £45 billion, we now hold
frameworks with 13 UK water companies, including with 10 of the 12 largest
combined waste and water firms - an impressive increase from 3 at the start of
AMP7. This milestone reflects the breadth and depth of our offering, alongside
the dedication of our teams in securing these new opportunities, and we look
forward to continuing to build on these solid foundations as we capitalise on
the significant growth opportunities available to us in this sector.
In Energy, during October 2024, we completed the acquisition of Full Circle, a
leading provider of repair, maintenance, and monitoring services for onshore
wind turbines across the UK and Europe. The business is integrating well and
significantly strengthens Renew's position in the growing renewable energy
market. In June 2024 we acquired Excalon Limited which saw the Group enter the
UK Electricity Distribution market, a new complementary sector with high
barriers to entry and resilient attributes. I am pleased to report that the
integration process is now complete and the business is performing in line
with expectations. There are a number of exciting opportunities for our civil
nuclear business and we are committed to leveraging our multidisciplinary
expertise to adapt to the evolving needs of our clients as they respond to
meet the UK's ambitious net zero targets as well as the requirement to safely
decommission our legacy nuclear assets. Our strategy to enter new verticals
and diversify our routes to market has been extremely successful and, with a
total annual addressable market of c.£9.2 billion, we see significant
opportunity for growth across the Energy division to build on our current
solid foundation of 28 frameworks.
In infrastructure, our Highways sector continues to make strong progress and
the UK's ageing network of roads and bridges means the renewals and capital
maintenance of this critical infrastructure has never been more important. As
such, the budget for the Strategic Roads Network in the next Roads Investment
Strategy (RIS3) funding cycle is expected to be significantly greater than
that of RIS2 (£4.3bn), which evidently plays to our core strengths as a
Group. Additionally, the ongoing momentum in both Communication Networks and
Aviation serves to demonstrates the Group's ability to adapt to evolving
critical infrastructure needs, ensuring strong levels of demand remain across
all our services.
The performance delivered during the period is as a result of the outstanding
work of all our colleagues, whose dedication and expertise remain integral to
the Group's long-term success. On behalf of the Board, I extend my sincere
gratitude to all our teams for their hard work, commitment, and
professionalism in delivering excellent service for our clients.
With a record order book, and bolstered by our diversified and resilient
business model, the Group is confident in its ability to navigate current
macroeconomic headwinds and deliver against full year expectations, with
operating profit expected to be ahead of the prior year (2024: £70.9m). We
have entered the second half of the financial year in a strong position with
established positions in our core markets and the visibility afforded by
committed regulatory spending cycles which continue to give confidence in our
future success.
Our strong track record of resilient growth through the economic cycle is
testament to the Group's market leading capabilities, entrepreneurial drive
and well established reputation as a high-quality provider of mission-critical
services in long-term, sustainable growth sectors.
Over the past five years*, we have delivered:
· Group organic revenue growth of 51 per cent and total revenue
growth of 76 per cent;
· adjusted earnings per share growth of 63 per cent;
· an increase in dividends of 65 per cent from 11.5p to 19p per
share;
· an increase in our adjusted operating margin from 6.4 per cent to
6.7 per cent; and
· seven strategic acquisitions supported largely by our strong free
cash flow, deploying £124m.
*Five years to 30 September 2024
Results overview
During the period, Group revenue increased 13% to £569.3m (HY24: £505.4m).
The adjusted operating profit was £32.0m (HY24: £32.3m) with an adjusted
operating margin of 5.6% (HY24: 6.4%).
As at 31 March 2025, the Group had pre-IFRS16 net debt of £11.8m (31 March
2024: Net cash £42.5m). The Group's order book at 31 March 2025 had
strengthened to £908m (HY24: £898m) underpinned by long-term framework
positions.
Dividend
The Group's resilient trading performance, cash position and record forward
order book have consistently allowed the Group to pursue its progressive
dividend policy. The Board has declared an interim dividend of 6.67p (HY24:
6.33p) per share, representing an increase of 5%. This will be paid on 9 July
2025 to shareholders on the register as at 6 June 2025, with an ex-dividend
date of 5 June 2025.
Rail
As announced on 24 January 2025, we have experienced challenges moving through
the initial stages of CP7, with the complex transition to the current control
period and macroeconomic headwinds resulting in slower than anticipated
programme mobilisations in specific areas of their national programme.
The impact on Renew:
· While deferment to specific renewal and structures schemes has impacted our
wider Rail sector during the period, Renew has seen a shift in work type
prioritisation with an increase in reactive and planned maintenance services
complementing its increasingly diversified offering.
· The estimated net impact of the slower than anticipated start to the control
period remains consistent with our expectations and our clients continue to
demonstrate a strong commitment to renewing and maintaining the national rail
network to meet their regulatory obligations.
Mitigatory measures:
· We have initiated a number of measures to counter the impact of the slower
than anticipated start, while ensuring that we remain well placed to
capitalise on the sizeable opportunity in the sector once conditions
normalise.
· These initiatives include:
o An ongoing right sizing programme to ensure operational efficiency
o Increased engagement with Network Rail, ensuring we remain a valued partner
and are kept abreast of latest developments
o Reallocating resources to most effectively respond to evolving demands,
particularly regarding mandates for unplanned and reactive maintenance,
through our regionally based team infrastructure
Sector highlights:
· Renew continues to be the largest provider of maintenance and renewals
services to Network Rail nationally and the third largest supplier overall. As
such, we are well positioned to benefit from ongoing rail investment as we
look to expand our current work bank by securing new CP7 frameworks as the
cycle progresses.
· Network Rail remains committed to £45.4bn of investment over the CP7 period,
within this allocation the maintenance and renewal budget has increased 9%
from CP6 to £31.9bn.
· The majority of CP7 tendering is now complete and we are in a much stronger
position with significantly better UK coverage and scope responsibility than
in CP6.
· Continued selective expansion of our rail client base beyond Network Rail
including work for Train Operating Companies and the telecommunication upgrade
programme.
· The establishment of Great British Railways will present an opportunity to
modernise the UK's railways, focusing on meeting the growing demand for
passenger and freight services, improving connectivity, and ensuring long-term
sustainability.
In summary, our long term trust and performance-based relationship with our
clients, alongside our unrivalled national framework coverage and
industry-leading delivery, positions us well to navigate the current
challenges and capitalise when market conditions improve. We continue to work
closely with our Rail clients as they focus on delivering their regulatory
commitments.
Infrastructure
Highways
The maintenance of the UK's strategic highways network has never been more
important. By the end of 2025, 70% of National Highway's network of roads and
bridges will be more than 45 years old(2) and as such, the prioritisation of
renewing the network's structures, rigid pavements and lighting &
technology is essential. As confirmed in the 2024 Autumn Budget, an interim
12-month funding settlement, which began in April 2025, was allocated to
bridge the gap between the previous cycle and the start of the RIS3 period.
This has allowed RIS3 to be considered as part of the multi-year Spending
Review, which was delayed due to the 2024 General Election. The interim year
will therefore be followed by the 5-year funding deal for RIS3, commencing in
April 2026, and as part of their recent announcement, the Department for
Transport preparatory consultations have indicated that the spending will be
increasingly focussed on maintaining and renewing the existing Strategic Road
Network. The budget for highways maintenance is therefore expected to be a
significant increase on that of RIS2 (£4.3bn), which plays to our core
strengths as a business and uniquely positioning us to deliver further growth.
We expect to receive further clarity on the Government's Spending Review in H2
2025.
Sector highlights:
· The existing National Highways Scheme Delivery Frameworks (SDF) will run to
2027 and we continue to execute on their ongoing work banks. These include
five framework lots covering civil engineering, road restraint systems and
drainage disciplines, worth more than £147m over the six-year period.
· Tendering engagements for the replacement SDF2 have started and the
opportunities are expected to come to market in late 2025. Our teams are well
placed to capitalise on the next set of frameworks to unlock further growth
across the strategic highways network.
· Eight of the current Design-Build-Finance-Operate (DBFO) schemes end in 2026
which will increase the strategic roads network maintained by National
Highways by 10% or 1,842 lane miles. These will require significant investment
before the conclusion of the schemes, providing the Group with further
opportunities for growth.
· Carnell's acquisition of Route One is continuing to perform in line with
expectations, and the business's expansion into Scotland is progressing very
well. We are particularly pleased that we are now working for all four of
Transport for Scotland's operating units.
· The AGC collaboration (between AmcoGiffen & Carnell) continues to be
successful as a leading road restraint services supplier to National Highways.
Aviation
Our strategy to increase market share in Aviation has proved successful and we
continue to see further growth opportunities across the sector as a growing
number of the UK's major airports focus on investment programmes dedicated to
renewals and asset maintenance.
Communication Networks
Once again, we have seen sustained momentum in this sector as improvements to
the UK's connectivity remains of critical importance and we continue to
experience strong levels of demand from all of the Multiple Network Operators
(MNOs) we support. We remain well positioned to help these customers develop
their networks across the UK, both increasing access to 5G services and
providing additional capacity in high demand areas.
Sector highlights:
· The CMA's decision to approve the Joint Venture between Vodafone and Three, as
announced in February 2025, is another very positive development for the
Group. The merger of their networks is backed by an eight-year investment plan
worth £11 billion and having been selected to deliver on the first two
schemes, we are well placed to further capitalise on this opportunity as we
continue to establish ourselves as a valued partner to the nation's largest
network providers.
· During the period we continued to establish ourselves as a core delivery
partner for the Small Cell roll out programme and we now have work banks
progressing with a number of network developers including Cellnex, BT and most
recently, Freshwave.
· We have also continued to benefit from the growth of neutral host network
operators rolling out small cell networks to support the MNOs in large urban
and commercial environments. This demonstrates the proven ability of our
entrepreneurial management teams to consistently evolve to meet the needs of
our specialist end markets where we continue to see considerable
opportunities.
Energy
Renewables
In October 2024, we completed the £50.5m acquisition of Full Circle, a
leading provider of repair, maintenance, and monitoring services for onshore
wind turbines across the UK and Europe. The business is integrating well and
trading in line with expectations, significantly strengthening Renew's
position in the growing renewable energy market. With governments in the UK
and across Europe remaining committed to achieving net zero carbon emissions
by 2050(3) and improving energy security, the renewable energy sector presents
significant long-term growth opportunities.
Sector highlights:
· The onshore wind market is well-established and forecast to grow at c.8% CAGR
over the next six years.
· The market for maintenance and renewal of these turbines is highly fragmented
and represents a significant opportunity for Full Circle to grow both
organically and through acquisitions.
· As part of the UK Government's ambitious 'Clean Power 2030' initiative to
establish a zero-carbon electricity network by 2030, it has committed to
once-in-a-generation(4) levels of energy investment worth an estimated £40
billion aiming to create, amongst other sources, 27-29 GW of onshore wind
energy as part of 'a new era of clean electricity'.
· The Onshore Wind Industry Taskforce, the body designed to bring together key
decision makers from across the industry, is actively exploring ways to
further accelerate this growth, ensuring that the UK is able to harness the
full potential of renewable energy. We welcome this positive driving force and
remain dedicated to supporting the transition towards a carbon-free
electricity network.
· During the period, we have secured new Master Service Agreements for 64 wind
turbines in the UK and France.
· Looking ahead, we have a very strong pipeline of target opportunities
involving over 1,500 turbines expected to be allocated in the next 18 months.
Transmission & Distribution
Having acquired Excalon in June 2024, we have successfully expanded into a new
complementary sector with high barriers to entry and resilient attributes. We
are pleased to report that the integration process is now complete and the
business is performing in line with expectations.
Sector highlights:
· The UK electricity Distribution Network Operator (DNO) market operates in
five-year funding cycles. The existing funding for the RIIO-ED2 cycle, which
commenced in April 2023 and runs to March 2028, is valued at £22.5 billion.
Renew's entry into this dynamic market provides access to a number of ED2
opportunities, supporting critical upgrades to the grid to better enable the
UK's zero-carbon generation and renewable energy objectives.
· Draft business plans for RIIO-T3, which runs from April 2026 to March 2031,
have been submitted to Ofgem and highlight an unprecedented(5) £68 billion in
total spend, driven by increased investment from National Grid, SSEN, and
Scottish Power. This provides significant opportunity for us to further embed
with existing suppliers and increase our market share throughout the control
period.
· The AGE Joint Venture between AmcoGiffen and Excalon has been awarded a
position on National Grid's Substation Civils DPS framework, underscoring our
expertise in delivering critical infrastructure and the strength of our
combined offering.
· Collaboration between Envolve and Excalon has been awarded a significant
scheme for National Grid in Melksham, where our combined capabilities proved
compelling.
· We remain well positioned to play a significant role in helping drive the
formation of the UK's EV charging infrastructure landscape, underpinned by the
Government's ambition of achieving net zero emissions by 2050. Momentum has
improved over the period.
Nuclear
Nuclear energy is becoming an increasingly important element of the UK
Government's new energy plan as it drives to meet its ambitious net zero
targets. As a result, there are a number of exciting opportunities for our
civil nuclear business and we are committed to leveraging our
multidisciplinary expertise to maintain momentum and adapt to the evolving
needs of our clients.
Sector highlights:
· The UK Government remains committed to its c.£4bn(6) decommissioning
programme, with approximately 75% of spend allocated to Sellafield, which
continues to drive significant demand for our civil nuclear business. We
remain one of the largest Mechanical & Electrical contractors at
Sellafield, operating across several decommissioning frameworks. With full
site remediation expected to take until 2125, this offers very long-term
opportunities for our civil nuclear business.
· Nuclear power is an essential element of the Government's clean energy
strategy as evidenced by its commitment to construct up to three new nuclear
plants in the next 10 years(7). These programmes will provide long-term and
sustainable demand for our range of specialist services.
· In April, we were pleased to see the UK Government approved a £20 billion
investment for the construction of Sizewell C, alongside a number of Small
Modular Reactor's (SMR's).
Environmental
Water
The AMP7 control period was incredibly successful for the Group and I am
pleased to confirm that we have entered AMP8, which began post-period end on 1
April 2025, in our strongest position yet. The total addressable market for
the new control period has grown by 94% to £45 billion and we now have
frameworks secured for 13 of the UK's water companies, including 10 of the 12
largest combined waste and water companies, up from three at the start of
AMP7. This is a significant achievement for the Group and is testament to our
hard working teams that have invested significant time and dedication
tendering and securing these new frameworks.
Strategic developments:
· Our multidisciplinary approach and the extent of the service offering we can
provide each utility company continues to grow, further strengthening our
position in this market.
· Increasing collaboration success across our water brands including Seymour and
Enisca working together to secure new long-term frameworks with both Yorkshire
Water and Northumbrian Water.
· As we transition from AMP7 to AMP8 we are pleased to see that there has been
minimal interruption to our activity levels or work bank as is often the case
when transitioning between AMP cycles.
As stated previously, Thames Water's operations remain unaffected by the
ongoing news headlines, and we continue to be allocated work schemes through
our existing frameworks with the utility. Due to the mission critical nature
of our work, operations in these maintenance and renewal frameworks will
continue regardless of any refinancing or ownership changes.
Health & Safety
Ensuring the health, safety and wellbeing of our colleagues and those in the
communities in which we operate has always been our highest priority and I am
very pleased to report that once again our Lost Time Injury Frequency Rate
(LTIFR) continues to be very low and sector leading. This performance reflects
our rigorous Group-wide safety programmes that ensure we take a proactive
approach to health and safety. Part of this approach centres on our increasing
commitment to driving innovation and we continue to make significant
advancements in this regard. Some highlights during the period included:
· Safety developments include the adoption of human form recognition on
operational plant and AI powered vehicle telematics to support driver
behaviour change and reduce road accidents.
· Better utilising behavioural science across the business to further educate
employees about, and thus reduce, 'at risk' behaviours.
Sustainability
The Group remains committed to achieving net zero by no later than 2040 and
the Board is pleased with the progress we've made against our quantitative
sustainability targets so far, led by our Climate and Nature Steering Group.
The progress delivered in the period includes:
· Implementing the ongoing roll out of Battery Storage Units (BSUs) and
Hydrotreated Vegetable Oil (HVO) to reduce carbon emissions from temporary
site power setups and vehicle fleet.
· Progressing collaborative work across our supply chain on the capture of Scope
3 emissions.
· Undertaking additional carbon data assurance work to further improve how we
measure and report our Scope 1, 2 and 3 emissions.
· Launch of Group-wide mandatory EV commercial vehicle trial.
Talent retention & attraction
The training and development of our colleagues remains essential to the
Group's long-term growth and I am pleased to confirm we now have a total of
378 apprentices, trainees and graduates working across the business, an
increase from 330 at 30 September 2024.
To complement the development schemes offered by our individual subsidiaries,
Renew also provides a number of dedicated programmes at Group-level, designed
to further support our employees as they progress on their chosen career
paths. Specifically, for early careers we offer four separate programmes
designed to engage emerging talent, empower these future leaders and provide
specialist training in key skills, knowledge and behaviours. All of which
ensures Renew remains fit for the future and is well placed to deliver
long-term growth.
One of the schemes we are particularly proud of is the Women in Leadership
programme which has been designed to run in parallel with all of our other
development initiatives, it is open to all women across the Group and has
received high levels of engagement.
Outlook
Renew's foundations have never been stronger in terms of the breadth of our
service offering, our secured new and existing frameworks and our
corresponding record order book. Further to this, following the successful
execution of our strategy to secure routes to new growth markets, the Group
now has two established brands in the exciting Renewable Energy and
Electricity Transmission and Distribution sectors. Our increasingly diverse
portfolio across our four pureplay engineering sectors further enhances the
resilience of our model.
We have experienced transitional challenges through previous framework renewal
cycles, but the ongoing trading conditions in Rail are very specific and
isolated and looking ahead, we fully anticipate that the stringent regulatory
drivers in this sector will compel the execution of the critical planned
renewals work bank across the rail network.
We are confident our strategy, to seek out critical infrastructure support
services with a disciplined approach to commercial risk and M&A, will
continue to serve us well. Our growth ambitions remain focused on the pursuit
of organic opportunity across all of our sectors, leveraging the strengths of
our embedded relationships and our unique ability to collaborate between our
brands to better serve both new and existing customers. To complement this, we
have an active M&A pipeline guided by a well-established criteria and
further supported by robust acquisition processes and a strong balance sheet.
Given the mission-critical nature of our services and our record order book,
bolstered by our diversified and resilient business model, we remain uniquely
positioned to capitalise on the significant growth opportunities in each of
our end markets. As a result, the Group remains confident in its ability to
navigate current headwinds and deliver against revised full year expectations.
(1)https://www.constructionnews.co.uk/civils/network-rail-boss-promises-smoother-cp7-funding-flow-09-04-2025/?utm_id=3300&delivery_name=2614&utm_campaign=CONE_CN_MARKETING_WYMHM_250412&utm_content=&utm_term=READ%20NOW&utm_medium=email&utm_source=Adestra
(https://www.constructionnews.co.uk/civils/network-rail-boss-promises-smoother-cp7-funding-flow-09-04-2025/?utm_id=3300&delivery_name=2614&utm_campaign=CONE_CN_MARKETING_WYMHM_250412&utm_content=&utm_term=READ%20NOW&utm_medium=email&utm_source=Adestra)
(2)https://nationalhighways.co.uk/media/3v2nqsee/cre22_0102-srn-initial-report-2025-2030_vn-updated.pdf
(https://nationalhighways.co.uk/media/3v2nqsee/cre22_0102-srn-initial-report-2025-2030_vn-updated.pdf)
(3) HM Treasury, 'Autumn budget 2024', October 2024, HC 295 of session
2024-25, pp 77-9.
(https://assets.publishing.service.gov.uk/media/672b9695fbd69e1861921c63/Autumn_Budget_2024_Accessible.pdf#page=82)
(4)
https://www.gov.uk/government/publications/clean-power-2030-action-plan/clean-power-2030-action-plan-a-new-era-of-clean-electricity-main-report
(https://www.gov.uk/government/publications/clean-power-2030-action-plan/clean-power-2030-action-plan-a-new-era-of-clean-electricity-main-report)
(5)https://www.nationalgrid.com/media-centre/press-releases/riio-t3-business-plan-published-framework-deliver-most-significant-step-forward-uks-transmission
(https://www.nationalgrid.com/media-centre/press-releases/riio-t3-business-plan-published-framework-deliver-most-significant-step-forward-uks-transmission)
(6)https://committees.parliament.uk/writtenevidence/139008/html/#:~:text=The%20UK%20continues%20to%20invest%20almost%20three,concern%20for%20Cumberland%20Council%20and%20we%20are
(https://committees.parliament.uk/writtenevidence/139008/html/#:~:text=The%20UK%20continues%20to%20invest%20almost%20three,concern%20for%20Cumberland%20Council%20and%20we%20are)
(7)https://www.gov.uk/government/news/shapps-sets-out-plans-to-drive-multi-billion-pound-investment-in-energy-revolution
(https://www.gov.uk/government/news/shapps-sets-out-plans-to-drive-multi-billion-pound-investment-in-energy-revolution)
CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 March 2025
Before exceptional items and amortisation of intangible assets Exceptional items and amortisation of intangible assets Before exceptional items and amortisation of intangible assets Year ended
(see Note 3) Six months ended 30 September
31 March Exceptional items and amortisation of intangible assets
(see Note 3)
2025 2025 2025 2024* 2024 2024 2024
(restated**)
Note Audited Audited Audited
Unaudited Unaudited Unaudited Unaudited
£000 £000 £000
£000 £000 £000 £000
Revenue: Group including share of joint ventures - 505,382 1,056,985 - 1,056,985
569,269 569,269
Less share of joint ventures' revenue - (25,022) (48,015) - (48,015)
(22,691) (22,691)
Group revenue from continuing activities - 480,360 1,008,970 - 1,008,970
546,578 546,578
Cost of sales (469,147) - (469,147) (412,458) (867,306) - (867,306)
Gross profit 77,431 - 77,431 67,902 141,664 - 141,664
Administrative expenses (47,101) 1,649 (45,452) (40,314) (74,980) (9,479) (84,459)
Other operating income 1,640 - 1,640 2,250 4,165 - 4,165
Share of post-tax result of joint ventures (80) (43) (125) 25 (224) (199)
37
Operating profit 32,007 1,569 33,576 29,713 70,874 (9,703) 61,171
Finance income 199 - 199 388 791 - 791
Finance costs (2,824) - (2,824) (623) (1,828) - (1,828)
Other finance income - defined benefit pension schemes - - - 90 - 90
-
Profit before income tax 29,382 1,569 30,951 29,478 69,927 (9,703) 60,224
Income tax expense 5 (7,061) 1,364 (5,697) (7,370) (17,771) 1,558 (16,213)
Profit for the period from continuing activities 2,933 25,254 22,108 52,156 (8,145) 44,011
22,321
Loss for the period from discontinued operations 4 (663) (1,201) (2,440)
Profit for the period attributable to equity holders of the parent company 24,591 20,907 41,571
Basic earnings per share from continuing operations 6 3.71p 31.91p 27.98p 65.91p (10.30)p 55.61p
28.20p
Diluted earnings per share from continuing operations 6 3.71p 31.91p 27.92p 65.88p (10.29)p 55.59p
28.20p
Basic earnings per share 6 28.20p 2.87p 31.07p 26.46p 65.91p (13.38)p 52.53p
Diluted earnings per share 6 28.20p 2.87p 31.07p 26.40p 65.88p (13.37)p 52.51p
Proposed dividend 7 6.67p 6.33p 19.00p
*Operating profit for the six months ended 31 March 2024 is stated after
charging £2,480,000 of amortisation cost and £151,000 of acquisition costs
(see Note 3).
** The comparatives have been restated due to the classification of a
component of the Group as a discontinued operation in the previous year.
Please see Note 1c) Basis of preparation for further details.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March 2025
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Profit for the period attributable to equity holders of the parent company 24,591 20,907 41,571
Items that will not be reclassified to profit or loss:
Movement in actuarial valuation of the defined benefit pension schemes - - 81
Movement on deferred tax relating to the defined benefit pension schemes - -
(5)
Total items that will not be reclassified to profit or loss - - 76
Items that are or may be reclassified subsequently to profit or loss:
Exchange movement in reserves - - -
Total items that are or may be reclassified subsequently to profit or loss - - -
Total comprehensive income for the period attributable to equity holders of 24,591 20,907 41,647
the parent company
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2025
Share Capital Share based Total
Share premium redemption payments Retained equity
capital account reserve reserve earnings Unaudited
£000 £000 £000 £000 £000 £000
At 1 October 2023 7,913 66,419 3,896 1,267 99,902 179,397
Transfer from income statement for the period 20,907 20,907
Dividends paid (9,497) (9,497)
New shares issued 1 1
Recognition of share based payments 356 356
Vested share option transfer (602) (253) (855)
At 31 March 2024 7,914 66,419 3,896 1,021 111,059 190,309
Transfer from income statement for the period 20,664 20,664
Dividends paid (5,009) (5,009)
Recognition of share based payments 351 351
Vested share option transfer 3 (4) (1)
Actuarial movement recognised in the pension schemes 81 81
Movement on deferred tax relating to the pension schemes
(5) (5)
At 30 September 2024 7,914 66,419 3,896 1,375 126,786 206,390
Transfer from income statement for the period 24,591 24,591
Dividends paid (10,029) (10,029)
New shares issued 2 2
Recognition of share based payments 400 400
Vested share option transfer (596) 596 -
At 31 March 2025 7,916 66,419 3,896 1,179 141,944 221,354
CONDENSED CONSOLIDATED BALANCE SHEET
at 31 March 2025
31 March 31 March 30 September
2025 2024 2024
(restated*)
Unaudited Unaudited Audited
£000 £000 £000
Non-current assets
Intangible assets - goodwill 192,877 149,517 161,172
- other 47,296 26,350 33,925
Property, plant and equipment 26,062 22,102 25,608
Right of use assets 26,743 21,556 26,294
Investment in joint ventures 3,736 3,852 3,780
Retirement benefit asset 2,954 2,456 2,954
299,668 225,833 253,733
Current assets
Inventories 13,135 4,002 6,365
Assets held for sale - 24,452 19,519
Trade and other receivables 208,524 174,100 183,488
Current tax assets 1,812 3,384 4,389
Cash and cash equivalents 8,205 37,974 80,219
231,676 243,912 293,980
Total assets 531,344 469,745 547,713
Non-current liabilities
Lease liabilities (15,570) (12,161) (15,605)
Retirement benefit obligation (641) (822) (641)
Deferred tax liabilities (12,269) (8,515) (9,982)
Provisions (338) (338) (338)
(28,818) (21,836) (26,566)
Current liabilities
Borrowings (20,000) - (52,000)
Trade and other payables (238,884) (199,078) (207,244)
Lease liabilities (9,353) (7,607) (8,975)
Provisions (12,935) (16,708) (17,461)
Liabilities directly associated with assets held for sale - (34,207) (29,077)
(281,172) (257,600) (314,757)
Total liabilities (309,990) (279,436) (341,323)
Net assets 221,354 190,309 206,390
Share capital 7,916 7,914 7,914
Share premium account 66,419 66,419 66,419
Capital redemption reserve 3,896 3,896 3,896
Share based payments reserve 1,179 1,021 1,375
Retained earnings 141,944 111,059 126,786
Total equity 221,354 190,309 206,390
* The comparatives have been restated due to the classification of a component
of the Group as a discontinued operation in the previous year. Please see Note
1c Basis of preparation for further details.
CONDENSED CONSOLIDATED CASHFLOW STATEMENT
for the six months ended 31 March 2025
Six months ended Year ended
31 March 30 September
2025 2024 2024
(restated*)
Unaudited Unaudited Audited
£000 £000 £000
Profit for the period from continuing operating activities 25,254 22,108 44,011
Profit on disposal of subsidiary (7,500) - -
Share of post-tax trading result of joint ventures 43 125 199
Amortisation of intangible assets and goodwill remeasurement 4,376 2,346 5,960
Research and development expenditure credit (563) (1,556) (4,894)
Depreciation 7,439 5,934 12,683
Profit on sale of property, plant and equipment (360) (181) (549)
(Increase)/decrease in inventories (634) 179 (1,770)
Increase in receivables (5,338) (1,882) (1,520)
Increase/(decrease) in payables 2,626 (4,943) (4,593)
Charge/(credit) in respect of share options 400 (499) 707
Settlement of share options - - (856)
Finance income (199) (388) (791)
Finance expense 2,824 623 1,738
Interest paid (2,824) (623) (1,828)
Income taxes paid (2,767) (7,462) (16,243)
Income tax expense 5,697 7,370 16,213
Net cash inflow from continuing operating activities 28,474 21,151 48,467
Net cash (outflow)/inflow from discontinued operating activities (2,312) 4,194 (4,032)
Net cash inflow from operating activities 26,162 25,345 44,435
Investing activities
Interest received 199 388 791
Proceeds on disposal of property, plant and equipment 489 369 1,326
Purchases of property, plant and equipment (1,389) (996) (6,146)
Acquisition of subsidiaries net of cash acquired (47,373) (4,208) (26,083)
Net cash outflow from continuing investing activities (48,074) (4,447) (30,112)
Net cash outflow from discontinued investing activities - (119) (545)
(48,074) (4,566) (30,657)
Financing activities
Dividends paid (10,029) (9,497) (14,506)
Issue of Ordinary Shares 2 1 1
New loan 20,000 20,000 72,000
Loan repayments (52,000) (20,000) (20,000)
Repayment of obligations under finance leases (5,540) (4,437) (9,246)
Net cash (outflow)/inflow from financing activities (47,567) (13,933) 28,249
Net (decrease)/increase in continuing cash and cash equivalents (67,167) 2,771 46,604
Net (decrease)/increase in discontinued cash and cash equivalents (2,312) 4,075 (4,577)
Net (decrease)/increase in cash and cash equivalents (69,479) 6,846 42,027
Cash and cash equivalents at the beginning of the period 77,684 35,657 35,657
Cash and cash equivalents at the end of the period 8,205 42,503 77,684
Bank balances and cash (see Note 10) 8,205 42,503 77,684
* The comparatives have been restated due to the classification of a component
of the Group as a discontinued operation in the previous year. Please see Note
1c Basis of preparation for further details.
NOTES TO THE CONDENSED CONSOLIDATED ACCOUNTS
1 Basis of preparation
a) The condensed consolidated interim financial report for the six
months ended 31 March 2025 and the equivalent period in 2024 has not been
audited or reviewed by the Group's auditor. It does not comprise statutory
accounts within the meaning of Section 435 of the Companies Act 2006. It has
been prepared under the historical cost convention and on a going concern
basis in accordance with UK-adopted International Accounting Standards ("UK
adopted IAS").
The report does not comply with IAS 34 "Interim Financial Reporting" which is
not currently required to be applied for AIM companies and it was approved by
the Directors on 12 May 2025.
b) The accounts for the year ended 30 September 2024 were prepared under
UK-adopted International Accounting Standards and have been delivered to the
Registrar of Companies. The report of the auditor on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement under Section 498 (2) or (3) of the Companies Act 2006.
In this report, the comparative figures for the year ended 30 September 2024
have been audited. The comparative figures for the period ended 31 March 2024
are unaudited.
c) The accounting policies applied in preparing the condensed
consolidated interim financial information are the same as those applied in
the preparation of the annual financial statements for the year ended 30
September 2024 as described in those financial statements.
Prior year restatement - disposal of Walter Lilly
On 4 October 2024 Walter Lilly was sold to Size Group Holdings Ltd (see Note
9). Management determined that, as a separate major line of business which met
the criteria to be classified as held for sale as at 30 September 2024, Walter
Lilly qualified as a discontinued operation. Under IFRS 5, the classification
of Walter Lilly as a discontinued operation resulted in the requirement to
separately present the totals of its result for the period and any gain or
loss on remeasurement on the face of the income statement. IFRS 5 also
requires that these disclosures be re-presented for prior periods presented in
the financial statements. Accordingly, it was necessary to restate the
comparative information as originally reported in order to present the result
of Walter Lilly within discontinued operations.
d) The principal risks and uncertainties affecting the Group are
unchanged from those set out in the Group's Accounts for the year ended 30
September 2024. The Directors have reviewed financial forecasts and are
satisfied that the Group has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, the Group continues to
adopt the going concern basis in preparing the condensed consolidated interim
financial report.
This condensed consolidated interim financial report is being sent to all
shareholders and is also available upon request from the Company Secretary,
Renew Holdings plc, 3125 Century Way, Thorpe Park, Leeds, LS15 8ZB, or via the
website, www.renewholdings.com (http://www.renewholdings.com) .
2 Segmental analysis
As set out in the accounting policy, the Group's operating segments have been
identified at the level of the individual subsidiaries based on the
information provided to the CODM. However, these operating segments are then
combined to identify the externally reportable segments based on the
aggregation criteria in IFRS 8. In previous years, having applied the
aggregation criteria, the Group identified two reportable segments -
Engineering Services and Specialist Building. Historically the Specialist
Building segment comprised Walter Lilly and Allenbuild Limited. Walter Lilly
was sold on 4 October 2024 and, as a separate major line of business, was
classified as a discontinued operation under IFRS 5 (see Note 1 Accounting
policies prior year restatement). Allenbuild Limited had previously been
sold in October 2014.
As Walter Lilly represented the last remaining CGU in the Specialist Building
segment, and was classified as a discontinued operation at September 2024, the
Group now comprises a single operating segment - Engineering Services.
(a) Geographical analysis
Group revenue for all financial periods is derived from continuing activities
predominantly in the UK.
All of the Group's non-current assets are deployed in the UK.
3 Exceptional items and amortisation of intangible assets
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Costs associated with acquisitions and disposal 1,475 151 3,519
Total losses arising from exceptional items 1,475 151 3,519
Amortisation of intangible assets 4,456 2,480 6,184
Profit on disposal of subsidiary (7,500) - -
Total exceptional items and amortisation charge before income tax (1,569) 9,703
2,631
Taxation credit on exceptional items and amortisation (1,364) (1,558)
(620)
Total exceptional items and amortisation charge (2,933) 2,011 8,145
During the period the Company incurred £251,000 of costs acquiring Full
Circle Holdings B.V.
Other costs relate to the disposal of Walter Lilly & Co Ltd and deferred
remuneration linked to the acquisition of Excalon Holdings Ltd.
4 Loss for the period from discontinued operations
The loss for the period from discontinued operations recognised in the Income
Statement of £663,000 (March 2024: £1,201,000, September 2024: £2,440,000)
comprises:
- a loss of £663,000 (March 2024: 1,803,000, September 2024: £3,466,000)
arising from ongoing costs associated with the disposal of Allenbuild Ltd; and
- the profit after tax of Walter Lilly of £Nil (March 2024: £602,000,
September 2024: £1,026,000).
Further details in relation to the disposal of Walter Lilly and an analysis of
its revenue, expenses, pre-tax profit and income tax expense are provided in
Note 9.
The Group has increased provisions as a result of an internal reassessment of
the likely costs required to settle Allenbuild Ltd's other known contractual
claims.
5 Income tax expense
Six months ended Year ended
31 March 30 September
2025 2024 2024
(restated*)
Unaudited Unaudited Audited
£000 £000 £000
Current tax:
UK corporation tax on profit for the period (5,830) (6,472) (16,407)
Adjustments in respect of previous periods - - (668)
Total current tax (5,830) (6,472) (17,075)
Deferred tax 133 (898) 862
Income tax expense (5,697) (7,370) (16,213)
* The comparatives have been restated due to the classification of a component
of the Group as a discontinued operation in the previous year. Please see Note
1c Basis of preparation for further
details.
6 Earnings per share
Year ended 30 September
Six months ended 31 March
2025 2024
2024
(restated*)
Unaudited Unaudited Audited
Earnings EPS DEPS Earnings EPS DEPS Earnings EPS DEPS
£000 Pence Pence £000 Pence Pence £000 Pence Pence
Earnings before exceptional items and amortisation 28.20 28.20 30.53 30.46 52,156 65.91 65.88
22,321 24,119
Exceptional items and amortisation 3.71 3.71 (2.55) (2.54) (8,145) (10.30) (10.29)
2,933 (2,011)
Basic earnings per share - continuing activities 31.91 31.91 27.98 27.92 44,011 55.61 55.59
25,254 22,108
Loss for the period from discontinued activities (0.84) (0.84) (1.52) (1.52) (2,440) (3.08) (3.08)
(663) (1,201)
Basic earnings per share 31.07 31.07 26.46 26.40 41,571 52.53 52.51
24,591 20,907
Weighted average number of shares 79,142 79,142 79,011 79,178 79,137 79,165
The dilutive effect of share options is to increase the number of shares by
Nil (March 2024: 167,350; September 2024: 28,000) and reduce the basic
earnings per share by 0.00p (March 2024: 0.06p; September 2024: 0.02p).
* The comparatives have been restated due to the classification of a component
of the Group as a discontinued operation in the previous year. Please see Note
1c Basis of preparation for further
details.
7 Dividends
The proposed interim dividend is 6.67p (2024: 6.33p) per share. This will be
paid out of the Company's available distributable reserves to shareholders on
the register on 6 June 2025, payable on 9 July 2025. The ex-dividend date
will be 5 June 2025. In accordance with IAS 1 "Presentation of Financial
Statements", dividends are recorded only when paid and are shown as a movement
in equity rather than as a charge in the income statement.
8 Acquisition of subsidiary undertaking - Full Circle Holdings B.V.
On 7 October 2024 the Group announced that it has acquired Full Circle Group
Holding B.V. ("Full Circle" or the "Company"), a specialist provider of
repair, maintenance and monitoring services for onshore wind turbines in the
UK and Europe for a total cash consideration of €59.0m (£49.3m), funded
from the Group's existing cash resources and banking facilities (the
"Acquisition"). Full Circle was controlled and owned predominantly by
AtlasInvest Holding, the Belgian family holding specialised in the energy
sector.
Acquisition highlights:
· Entry into the highly fragmented onshore wind services market
· Technology-enabled platform providing 24/7 remote maintenance across nine
countries from a centralised control centre in Amersfoort, the Netherlands
· Attractive servicing model built on strong customer relationships, with
long-term, recurring full-scope contracts
· Experienced and committed management team in place to execute growth
strategy
The provisional fair value of the assets and liabilities of Full Circle at the
date of acquisition were:
Fair value
£000
Assets
Intangible assets 17,747
Property, plant and equipment 1,251
Right of use assets 1,239
Inventories 6,136
Trade and other receivables 19,697
Cash 2,070
Total assets 48,140
Liabilities
Borrowings (102)
Lease liabilities (1,291)
Trade and other payables (26,615)
Corporation tax (76)
Deferred tax liabilities (2,420)
Total liabilities (30,504)
Total identifiable net assets at fair value 17,636
Goodwill arising on acquisition 31,705
Purchase consideration transferred 49,341
Goodwill of £31,705,000 arose on acquisition and is attributable to the
expertise and workforce of the acquired business.
Other intangible assets valued at £17,747,000, which represent customer
relationships and contractual rights, were also acquired and will be amortised
over their useful economic lives in accordance with IAS 38 and as defined
within accounting policy Note 1.v Intangible assets. Amortisation of this
intangible asset commenced from October 2024. Deferred tax has been provided
on this amount.
Fair value adjustments arising from the
acquisition
In accordance with IFRS 3, the Board will review the fair value of assets and
liabilities using information available during the 12 months after the date of
acquisition. Fair value has been calculated using Level 3 inputs as defined by
IFRS 13.
The fair value of trade and other receivables was £19.7m. The gross amount of
trade and other receivables was £19.7m and it is expected that the full
contractual amounts will be collected.
Transaction costs of £0.2m were expensed and are included in exceptional
items (please see Note 3).
9. Disposal of Walter Lilly & Co Ltd
On 4 October 2024 the Company announced the disposal of Walter Lilly & Co.
Limited ("Walter Lilly") for a nominal net cash impact on a cash free/debt
free basis to Size Holdings Limited ("Size") (the "Disposal"), a leading
provider of premium quality construction, specialist crafts and maintenance
services. Size will assume any ongoing liabilities relating to Walter Lilly.
The disposal will enhance Group operating margins
The disposal saw the Group exit its only remaining Specialist Building
business and is consistent with the Group's strategy of focusing activities on
Specialist Engineering where it targets end markets delivering maintenance and
renewals programmes that benefit from long-term, non-discretionary funding
programmes.
At 30 September 2024 Walter Lilly was classified as a disposal group held for
sale and as a discontinued operation. Consequently, the March 2024
comparatives have also been restated accordingly. (Please see Note 1c for
details.)
The business of Walter Lilly represented the entirety of the Group's
Specialist Building operating segment until 30 September 2024. With Walter
Lilly being classified as a discontinued operation, the Specialist Building
segment is no longer presented in the segment note.
The results of Walter Lilly for the periods are presented below.
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Revenue from contracts with customers - 47,416 91,535
Expenses - (46,614) (90,130)
Operating income - 802 1,405
Finance costs - - -
Profit before tax from discontinued operations - 802 1,405
Tax expense - (200) (379)
Profit for the year from discontinued operations - 602 1,026
The major classes of assets and liabilities of Walter Lilly classified as held
for sale as at 30 September 2024 are as follows:
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Property, plant and equipment - 245 602
Right of use assets - 53 707
Cash - 4,529 -
Debtors - 19,625 18,210
Assets held for sale - 24,452 19,519
Bank overdraft - - (2,535)
Lease liability - (53) (707)
Creditors - (34,154) (25,835)
Liabilities directly associated with assets held for sale - (34,207) (29,077)
Group net asset directly associated with the disposal group - (9,755) (9,558)
Group net asset directly associated with the disposal group (9,558)
At 30 September 2024 Walter Lilly had an inter-company debtor, settled on 19,696
disposal
Subsidiary net assets 10,138
Other provisional post year-end movements (541)
Exceptional profit on disposal 7,500
Provisional sale proceeds 17,097
Provisional sale proceeds 17,097
Overdraft 2,535
Inter-company settlement (19,696)
Estimated cash impact (64)
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Net cashflows incurred by Walter Lilly are as follows:
Operating - 4,648 (3,167)
Investing - (119) (546)
Financing - - -
- 4,529 (3,713)
Sale proceeds are provisional, and are subject to finalising a completion
accounts exercise which may impact the net assets, consequent sale proceeds,
profit on disposal and net
cash.
10. Cash and cash equivalents
Six months ended Year ended
31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£000 £000 £000
Cash at banks 8,205 37,974 80,208
Cash in hand - - 11
8,205 37,974 80,219
For the purpose of the statement of cash flows, cash and cash equivalents
comprise the following:
£000 £000 £000
Cash at banks 8,205 37,974 80,208
Cash in hand - - 11
8,205 37,974 80,219
Bank overdraft attributable to discontinued operation (Note 9) - 4,529 (2,535)
8,205 42,503 77,684
£000 £000 £000
Cash and cash equivalents 8,205 42,503 77,684
Cash in hand (20,000) - (52,000)
Net (debt)/cash (11,795) 42,503 25,684
Renew Holdings plc has not included finance lease liabilities within its
measure of net cash due to their asset-backed nature. Therefore, whilst IFRS
16 has brought additional lease liabilities onto the balance sheet, the
standard has had no effect on the Group's net debt measure, which has been
calculated consistently with previous reporting periods.
IFRS 16 measurement of debt
The equivalent figures on an IFRS 16 measure would be :
£000 £000 £000
Net (debt)/cash (as above) (11,795) 42,503 25,684
Hire purchase liabilities (6,051) (6,018) (6,103)
Net (debt)/cash including hire purchase liabilities (17,846) 36,485 19,581
Other IFRS 16 right of use liabilities (18,872) (13,750) (18,477)
Net (debt)/cash including all lease liabilities on an IFRS 16 measure (36,718) 22,735 1,104
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