REG - Renew Holdings PLC - Half-year Report
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260512:nRSL8719Da&default-theme=true
RNS Number : 8719D Renew Holdings PLC 12 May 2026
12 May 2026
Renew Holdings plc
("Renew" or the "Group" or the "Company")
Half-year Report
Record first half performance providing momentum and confidence in full year
outturn
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 2026 ("the period").
Financial Highlights
Six months ended 31 March HY26 HY25 Change
Group revenue £589.0m £569.3m +3.5%
Adjusted operating profit £33.4m £32.0m +4.4%
Operating profit £26.9m £26.1m +3.0%
Adjusted operating margin 5.7% 5.6% 10bps
Profit before tax £25.5m £23.5m +8.6%
Adjusted earnings per share 30.9p 28.2p +9.6%
Interim dividend 7.0p 6.7p +4.9%
( )
· Record half year performance with strong revenue and adjusted operating profit
growth.
· Group revenue increased 3.5% to £589m driven by our increasingly diversified
end market exposure and the sustained demand for our mission-critical
services.
· Adjusted operating profit growth of 4.4% to £33.4m.
· Record Group order book of £945m (HY25: £908m), underpinning confidence in
full year outturn.
· Pre-IFRS16 net cash position of £10.6m at 31 March 2026 (HY25 net debt:
£11.8m).
· Increased interim dividend reflects the Board's confidence in the Group's
trading performance, cash generation and forward order book visibility.
Operational Highlights
· In Rail, we have continued to leverage our increasingly diversified offering
to capitalise on growing maintenance spend while retaining our position as
Network Rail's largest supplier of infrastructure services.
· In Water, we have secured our strongest position yet, with record levels of
activity across a number of our water regions.
· Increasing levels of intergroup collaboration remains a clear differentiator,
unlocking new routes to market for our brands.
· Successfully completed the acquisition of Emerald Power in October 2025, with
integration progressing well and expanding Renew's capabilities in the
fast-growing overhead line maintenance and repair market.
· We remain committed to investing in our industry leading early talent
programmes.
Post-period End
· On 30 April 2026, Envolve acquired Edwards Diving Services Limited (EDS), a
provider of specialist marine and civil engineering services to the water
industry. This acquisition further expands the Group's capabilities and
expertise by taking Envolve, and the wider Group, into the increasingly
specialist water services market and will be immediately earnings enhancing.
· On 7 May 2026, Excalon acquired PWR-X, a high voltage cable jointing
specialist. The acquisition expands our service offering in the high growth
electricity transmission and distribution market.
Current Trading & Outlook
· Following a record financial performance in the first half, we have momentum
and confidence as we progress through H2.
· Active M&A pipeline guided by well-established criteria and further
supported by robust acquisition processes and a strong balance sheet.
· Record order book afforded to us by highly visible, committed, long-term
spending cycles providing confidence in delivering against our FY26
expectations.
Paul Scott, CEO of Renew, commented:
"I am pleased to report that we have delivered another record performance
during the first half of the year, providing momentum as we continue to
execute against our ambitious long-term growth strategy. Once again, the
Group's sustained success is testament to the hard work, commitment and
dedication of our colleagues and I would like to thank them all for their
continued efforts.
"The past six months have demonstrated the strength of our increasingly
diversified business model which, combined with further intergroup
collaboration and innovation, leaves us well placed to capitalise on the
significant opportunities available to us across the Group. We have seen
strong demand across our four pureplay engineering sectors, successfully
winning a number of new frameworks and further consolidating our leading
positions in each of our end markets.
"Post-period end, we were pleased to report further strategic progress through
the acquisitions of EDS and PWR-X, which broaden our capabilities and open new
routes to market in the exciting specialist water and power sectors.
"With a record order book afforded to us by highly visible, committed,
long-term spending cycles, we remain confident in continuing on this growth
trajectory and we look forward to delivering against our full year
expectations."
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 / Charlotte Sutcliffe
FTI Consulting (Financial PR) 020 3727 1000
Alex Beagley / Amy Goldup / Matthew Young / Harleena Chana Renew@fticonsulting.com (mailto: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/)
Renew HY26 Results
Chief Executive Officer's Review
Record first half performance and further strategic progress
I am pleased to report the Group has delivered another six months of strategic
progress, underpinned by a robust trading performance, in line with our
expectations. These results are testament to the resilient and differentiated
nature of our high-quality, low-risk, compounding business model, alongside
the hard work of our teams which allow us to capitalise on the increasing
demand across our end markets.
During the period we successfully progressed against a number of our strategic
objectives, including broadening our capabilities in key growth sectors. The
continued success of this strategy has been exemplified most recently by our
acquisition of Emerald Power in October 2025. This has further expanded the
Group's capabilities by taking Excalon into the fast-growing overhead line
maintenance and repair market and I am pleased to say that Emerald's
integration is progressing very well and the business is already delivering a
positive impact to the wider Group.
Post-period end, we were also delighted to announce the acquisitions of
Edwards Diving Services, a provider of specialist engineering services in
challenging environments to the Water industry and PWR-X, which adds
specialist jointing services to the Group's capabilities in the Power
Transmission and Distribution market.
We continue to review an active acquisition pipeline in line with our strategy
of acquiring and integrating value-accretive businesses. The strength of the
Group's balance sheet allows us to respond quickly to opportunities within our
target markets.
The Group delivered organic growth of 2.2% in the period and we expect this to
accelerate in the second half of our year. With a record order book, an
increasingly diversified business model and the clear revenue visibility
afforded to us by committed regulatory spending cycles, we remain confident in
our future success and ability to deliver against our FY26 expectations.
Our strong track record of resilient growth through economic cycles 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 40% and total revenue growth of 80%;
· Adjusted earnings per share growth of 63%;
· Seven strategic acquisitions supported by our strong free cashflow conversion
of 63.4%, deploying £135.4m; and
· Average ROCE of 27%.
*Five years to 30 September 2025
Results overview
During the period, Group revenue increased 3% to £589.0m (HY25: £569.3m).
The adjusted operating profit was £33.4m (HY25: £32.0m) with an adjusted
operating margin of 5.7% (HY25: 5.6%).
As at 31 March 2026, the Group had pre-IFRS 16 net cash of £10.6m (31 March
2025: net debt £11.8m). The Group's order book at 31 March 2026 had
strengthened to £945m (HY25: £908m) underpinned by long-term framework
positions.
Dividend
The Group's robust trading performance, cash position and strong forward order
book have given the Board the confidence to declare an interim dividend of
7.00p (HY25: 6.67p) per share, representing an increase of 5%. This will be
paid on 8 July 2026 to shareholders on the register as at 5 June 2026, with an
ex-dividend date of 4 June 2026.
Rail
Leveraging our diversified position to capitalise on increasing maintenance
spend, unlocking new routes to market and securing further opportunities
through successful collaboration and capability expansion
In Rail, I am pleased to report our business has performed in line with
expectations during the first half of the year. As noted in our FY25 Final
Results in November, we have continued to see subdued levels of renewals
activity as Network Rail prioritises investment in reactive maintenance,
particularly focused on weather-related incidents and those directly impacting
train performance. That said, the Group's increasingly diversified position
has allowed us to leverage our industry-leading expertise to capitalise on the
opportunities available in this market and during the period we delivered
record levels of emergency response maintenance services, retaining our
position as Network Rail's largest supplier of infrastructure services.
Now in the third year of the £45.4bn CP7 control period, which runs until
March 2029, Network Rail remains committed to investing £31.9bn in renewing
and maintaining the UK's rail network. With a significant number of ageing
assets, the nation is experiencing unprecedented need for a renewal programme
focused on upgrading its existing network in the coming years and Renew
remains extremely well placed to take advantage of the opportunities that this
will present.
We are focused on continuing to maximise our position as a leading provider of
maintenance and renewal services across all five of Network Rail's devolved
regions as well as further diversifying our routes to market across a broader
client base. An achievement of particular note was winning the Structures
Examination framework in the Eastern Region, leveraging our rail
infrastructure expertise to provide broader asset maintenance services,
alongside our traditional renewal and maintenance works. In the first half, we
have successfully secured frameworks with several Train Operating Companies
(TOCs), NEOS (Project Reach), South Yorkshire Combined Authority, Edinburgh
Tram and the Transpennine Route Upgrade.
We also note the progress being made in the formation of Great British
Railways and we look forward to the opportunities that this harmonisation will
bring.
Sector highlights:
· Further strengthened our position and coverage in CP7 by securing several new
frameworks.
· The increasingly impactful collaboration between our brands remains a clear
differentiator, with the ARQ (AmcoGiffen, REL and QTS) joint venture
delivering an award-winning performance on the Severn Tunnel OLE renewal
framework.
· Strengthening our position with a broader range of rail clients with new
frameworks and momentum creating further opportunities going forward.
Infrastructure
Highways
Broadened our leading service offering through greater collaboration and
capability expansion driving sustained growth and positioning us well at the
outset of RIS3
We welcomed the publication of the Road Investment Strategy 3 (RIS3) policy
paper in March 2026 reaffirming the Government's commitment to renewals across
the UK's strategic road network (SRN) and beyond. The paper confirms RIS3 will
commit £27bn over the next five years to fund major programmes to upgrade and
future-proof England's roads. Importantly, an estimated £8.4bn (RIS2:
£4.8bn) of that will be dedicated to renewal works, with a focus on major
structures and the replacement of road surfaces. This maintenance-first
investment has never been more important with 70% of National Highways'
network of roads and bridges now more than 45 years old and the increasingly
severe impact of climate change being felt across the network.
This directive from the UK Government perfectly complements Renew's strengths
and uniquely positions us to play an integral role in renewing the UK's
critical highway infrastructure, thereby ensuring sustained growth for the
Group as our addressable market continues to scale.
Prior to the commencement of RIS3 in April 2026, an interim one-year funding
cycle worth £4.8bn was announced to ensure the continued delivery of critical
services. This short extension included an 18% increase in spend on
maintenance and renewals, worth roughly £1.3bn.
Sector highlights:
· A very strong start to the year with increased spend by National Highways on
bridge maintenance, particularly bridge deck repair, which is now a core part
of our diversified expert offering.
· Our AGC collaboration continues to go from strength to strength with increased
demand for our Road Restraint expertise in the first half and a strong forward
order book.
· We have successfully continued our growth into Scotland, securing new
contracts.
· Four Group companies are preparing to bid for the National Highways SDF2 when
the procurement process commences in June 2026, as part of a collaborative
strategy to significantly grow our presence with this important client.
· Our successful SDF1 frameworks have been extended by five months through to
February 2028.
Aviation
Continue to build our organically grown capability as we focus on scaling our
exposure to a broader airside asset client base
Our teams have delivered another solid performance in the first half,
successfully executing critical work at a number of the UK's airports. We have
successfully delivered the first phase of new stands at Leeds Bradford airport
and are carrying out our first runway renewals work at Stansted Airport. We
are also currently delivering our first contract for Birmingham Airport. As a
result, we remain confident in our strategy to increase market share in
airport asset renewal and maintenance across the UK's 40 commercial airports.
Communication Networks
Further strategic progress made as the Group continues to unlock new routes to
market
We continue to establish ourselves as a valued partner to the nation's largest
network providers, ensuring we are well positioned to benefit from the
increasing resource levels being dedicated to developing the UK's historically
underinvested communications infrastructure.
Moreover, there is growing need to ensure better connectivity and data sharing
capabilities across the UK's critical infrastructure. As such, the digital
infrastructure market is evolving to enable greater connectivity between the
organisations responsible for managing our critical assets including energy,
water, rail and highways. As communicated previously, the new Vodafone and 3UK
merger has committed to £11bn of investment over ten years, which will
release significant resource dedicated to optimising services and we remain
well positioned to capitalise here as the work ramps up. Our largest client,
VMO2, committed a £700m investment to improve reliability and coverage in
2025/26. During the period we have secured a new framework position,
potentially increasing our market share as one of VMO2's largest strategic
partners.
In line with our overarching strategy, we have continued to effectively
diversify our routes to market, especially through our work targeting smaller
private operators, helping to further differentiate our market-leading
position. We have also been successful in developing a complementary
capability supporting the UK's AMP Battery Box Rollout programme. These
Battery Boxes are being installed in critical parts of the nation's power
network and will play a significant role in easing the growing burden on our
electricity networks as the Government continues to push towards its net zero
ambitions.
Sector highlights:
· Secured a new framework position, potentially increasing our market share with
VMO2.
· Continue to roll out the new integrated network for Vodafone and 3UK,
supporting the much needed improvement of the UK's ageing communications
infrastructure.
· Delivered further strong growth across our market-leading Small Cell service
offering through our current framework with BT and Cellnex alongside our
ongoing work with Freshwave.
Energy
Renewables
Established a strong position in the high-growth wind services market with
good momentum in winning new service agreements
The UK and European energy sectors are experiencing significant expansion
which presents substantial medium to long-term growth prospects for the Group.
As part of its clean energy transition framework, the UK Government has
pledged to increase annual investment in Clean Energy Industries to a minimum
of £30bn by 2035, more than double current levels. This capital deployment
will support the expansion of onshore wind capacity to 27-29GW, effectively
doubling existing infrastructure and resulting in transformational growth in
renewable generation and energy storage capabilities. Beyond the UK, Europe's
decarbonisation trajectory is similarly dependent on wind power, with onshore
wind capacity across France, Italy, Spain, Germany and Poland projected to
double by 2030, creating more opportunities across multiple geographies for
the businesses positioned to serve this expanding market.
As announced in our H1 Trading Update in April 2026, the short-term
performance of our onshore wind business, Full Circle, has been impacted by
underperformance in its French subsidiary, which is now undergoing a
restructuring review. This will reposition the business to capitalise on the
significant and increasing market opportunity in this exciting sector.
Full Circle is a business with a well-regarded offering in a high-growth
sector and our ambition remains to increase its exposure to this
multi-operator market. Importantly, throughout the period, we have continued
to win new service agreements, now with 747 in total, and we remain confident
in Full Circle's growth prospects over the medium-term.
Sector highlights:
· Market underpinned by UK and European commitments to deliver on their net zero
2050 targets.
· Secured 63 new MSA contracts in the period to March totalling 747 turbines
under contract.
Transmission & Distribution
Strong momentum, expanded capability and improving market position in a
high-growth sector
Since acquiring Excalon in June 2024, we have established a strong position
within the UK's electricity distribution and transmission sectors at what is a
pivotal transformation period. The UK electricity Distribution Network
Operator (DNO) market operates in five-year funding cycles and the existing
funding for the RIIO-ED2 cycle, which commenced in April 2023, is valued at
£22.5 billion. Renew's strong position in 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.
Ofgem's final determination for RIIO-T3, announced in December 2025, has
approved £28.1bn of upfront funding across electricity and gas transmission
and gas distribution price controls. ED2 and RIIO-T3 sit within a wider
investment pipeline of approximately £90bn through to 2031. Investment is
critical to adapt the grid to accommodate the planned additional renewable
generation, positioning the UK electricity sector at the beginning of an
exciting period of unprecedented capital deployment.
In October 2025 we announced the acquisition of Emerald Power, a specialist in
overhead lines, focused on the maintenance and upgrade of electricity networks
for Distribution Network Operators. The acquisition represented a strong
strategic fit, and since completion, has transformed our offering, expanding
our range of services while providing even greater expertise and unlocking new
established relationships that have significantly strengthened the Group's
overall position in the sector.
During the period, intergroup collaboration has proven essential to achieving
a wider range of frameworks that would otherwise have been inaccessible,
underscoring the strength of our combined offering. This was exemplified in
the period by our AGE joint venture between AmcoGiffen and Excalon,
demonstrating their complementary skillsets through the successful delivery of
complex, multidisciplinary projects.
Sector highlights:
· Emerald Power integration progressing well and trading in line with our
pre-acquisition expectations.
· Expanded services offering through the acquisition of PWR-X post period end.
· Broadening national exposure with an increasing number of frameworks across
the UK.
· Very strong pipeline of new opportunities.
Nuclear
Well positioned for long-term success in a market with exceptional longevity
Operating across multiple decommissioning frameworks at Sellafield, we are
well positioned to scale alongside the significant opportunities at this site.
Ongoing site-wide industrial action continues to impact our performance, but
our opportunities are underpinned by long-term frameworks, the longevity of
the overall programme and the significant scale of the works. Funding is
underpinned as part of the UK Government's annual c.£4bn decommissioning
programme under its 100-year decommissioning strategy. As such, we expect this
site will deliver a very healthy pipeline over the medium-term as we remain
firmly embedded as one of the largest mechanical and electrical contractors.
The impact of recent macro events on global fuel prices has served to
highlight the critical nature of energy security underpinning the UK's nuclear
energy generation plan. We were pleased to see recent commentary from the
Government with regards to accelerating the UK's renewable energy strategy
through the delivery of key green energy projects, including Sizewell C. The
UK Government remains committed to its goal of achieving clean power by 2030
and nuclear energy remains a central component to this target. As a result,
there are a number of exciting long-term opportunities for our civil nuclear
business and we remain committed to leveraging our multidisciplinary expertise
to capitalise on these.
Sector highlights:
· Deeply embedded in long-term frameworks at Sellafield.
· Continue to secure opportunities outside of Sellafield in order to increase
our presence in the wider civil nuclear decommissioning market.
· Developing a position in the UK's new nuclear market.
EV Charging
The UK Government has set a target to reach net zero emissions by 2050, with a
key priority being the reduction of transport-related emissions which is the
largest emitting area within the UK economy. The Group is well placed to play
a significant role in expanding the nation's EV charging infrastructure and by
leveraging our established partnerships with leading charge point operators,
we will continue to develop this business and scale in line with the broader
market.
Sector highlights:
· Continued momentum delivering a rollout programme for Royal Mail in depots and
high-power charging for commercial vehicle applications working for
Gridserve.
Environmental
Water
Continuing to go from strength to strength, providing excellent momentum as we
move into year 2 of AMP8
In April 2025 we entered the AMP8 control period in our strongest position yet
and I'm pleased to report this exciting momentum has continued with record
levels of activity in a number of our water regions. We remain focused on
capitalising on the opportunities available to us in the current spending
cycle, which runs to March 2030. An estimated £104bn of investment has been
committed, alongside £45bn assigned to new infrastructure (AMP7: £11bn),
which serves to highlight the scale of this structurally growing addressable
market. The challenges posed by an increase in extreme weather events, rising
population figures, ageing assets and the Government's drive towards net zero
targets also create a major opportunity for our brands operating across the
breadth of the UK's clean and waste water industry.
Working for 10 of the 12 largest combined waste and water regions, we would
note that performance in 8 of the 10 regions is in line or ahead of our
expectations, with 2 regions presenting a slower start, where we expect to see
increased momentum as we move through the regulated cycle.
Our proven track record and expanded service offering mean we have continued
to bolster our long-standing relationships with key clients in the first half.
I can also confirm our operations with Thames Water remain unaffected by the
widely reported news regarding its financial position and our critical work on
maintenance and renewal frameworks continues with good momentum. As
communicated previously, this remains a truly exciting time for our Water
business and we look forward with confidence in our ability to capitalise on
the long-term growth in this expanding market.
Sector highlights:
· Record levels of activity in a number of our water regions.
· Expanded services offering through the acquisition of EDS post period end.
· Successful as sole delivery partner for DCWW on two new Network Alliance
framework Lots which represents a tangible step change in our offering in the
region.
· Operating in a new region for South West Water, we have successfully completed
a number of critical projects in the first half.
Health & Safety
Health and safety remains fundamental to our operations, and we are committed
to safeguarding the wellbeing of all our colleagues and the communities we
serve. Supported by our industry-leading Group-wide safety programmes, we have
maintained our strong health and safety record. We recognise that continuous
improvement is essential and we remain focused on committing to further
investment, particularly in our psychological safety and behavioural science
programmes, to ensure we uphold the highest safety standards across all our
operations.
Sustainability
The Group remains committed to achieving net zero by no later than 2040, and
the Board is encouraged by our ongoing progress in embedding our ESG strategy
across the business. This includes a continued focus on reducing carbon
emissions and ensuring strong engagement from our subsidiary businesses in the
sustainability initiatives across the Group.
Talent Retention & Attraction
Developing and retaining our talent remains a key priority as we position the
business for long-term growth. I am pleased to report that we have a total of
368 apprentices, trainees and graduates in role across the Group.
In addition to the development opportunities we provide through our individual
subsidiaries, we offer a range of dedicated Group-wide programmes designed to
support colleagues at every stage of their careers. Our RISE programme is
something I am especially proud of and it continues to build momentum with the
fifth cohort launched in April 2026, while our Purposeful Leadership programme
is also expanding, with the sixth and seventh cohorts due to launch later this
year. We are also particularly encouraged by the continued success of our
Women in Leadership programme, which was launched in March 2025. Elsewhere, I
am pleased to report that our Rail Skills Academy has continued to go from
strength to strength. This purpose-built programme was founded to nurture and
support the future leaders of the Rail industry and our investment here is
already bearing fruit with the majority of participants continuing to work in
the sector.
Outlook
Following a solid performance in the first six months of FY26, we have entered
the second half with continued confidence in delivering against our full year
expectations.
Our strategy continues to be underpinned by long-term structural growth
drivers in each of our attractive end markets, alongside the resilient and
increasingly differentiated nature of our business model which positions us
well to capitalise on the significant number of opportunities available to
us.
We remain well placed to deliver both organic and acquisitive growth, building
on the strategic acquisitions completed during the period and post period,
which allow us to leverage our enhanced capabilities across the high-growth
water and transmission & distribution markets.
The combination of our record order book afforded to us by highly visible,
committed, long-term spending cycles, market-leading positions, proven track
record of delivery, and the scale of committed investment across our sectors
gives us confidence that Renew is exceptionally well positioned for sustained
success in the years ahead.
CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 March 2026
Before exceptional items and amortisation of intangible assets Exceptional items and amortisation of intangible assets Before exceptional items and amortisation Year ended
(see Note 3) Six months ended 31 March of intangible assets Six months ended 31 March 30 September
Exceptional items and amortisation
of intangible assets
(see Note 3)
2026 2026 2026 2025 2025 2025 2025*
Note Unaudited Unaudited Audited
Unaudited Unaudited Unaudited Unaudited
£000 £000 £000
£000 £000 £000 £000
Revenue: Group including share of joint ventures - 569,269 - 569,269 1,116,053
588,991 588,991
Less share of joint ventures' revenue - (22,691) - (22,691) (35,154)
(14,699) (14,699)
Group revenue from continuing activities 2 - 546,578 - 546,578 1,080,899
574,292 574,292
Cost of sales (489,358) - (489,358) (469,147) - (469,147) (919,525)
Gross profit 84,934 - 84,934 77,431 - 77,431 161,374
Administrative expenses (53,103) (6,511) (59,614) (47,101) (5,851) (52,952) (103,515)
Other operating income 1,590 - 1,590 1,640 - 1,640 2,853
Share of post-tax result of joint ventures (48) (60) 37 (80) (43) (99)
(12)
Operating profit 33,409 (6,559) 26,850 32,007 (5,931) 26,076 60,613
Finance income 81 - 81 199 - 199 559
Finance costs (1,463) - (1,463) (2,824) - (2,824) (4,632)
Other finance income - defined benefit pension schemes - - - - - 126
-
Profit before income tax 32,027 (6,559) 25,468 29,382 (5,931) 23,451 56,666
Income tax expense 5 (7,567) 1,026 (6,541) (7,061) 1,364 (5,697) (12,256)
Profit for the period from continuing activities (5,533) 18,927 22,321 (4,567) 17,754 44,410
24,460
(Loss)/profit for the period from discontinued operations 4 (877) 6,837 4,404
Profit for the period attributable to equity holders of the parent company 18,050 24,591 48,814
Basic earnings per share from continuing operations 6 (6.99p) 23.91p 28.20p (5.77p) 22.43p 56.11p
30.90p
Diluted earnings per share from continuing operations 6 (6.99p) 23.89p 28.20p (5.77p) 22.43p 56.10p
30.88p
Basic earnings per share 6 30.90p (8.10p) 22.80p 28.20p 2.87p 31.07p 61.67p
Diluted earnings per share 6 30.88p (8.09p) 22.79p 28.20p 2.87p 31.07p 61.66p
Proposed dividend 7 7.00p 6.67p 20.00p
* Operating profit for the year ended 30 September 2025 is stated after
charging £9,188,000 of amortisation cost and £2,283,000 of acquisition costs
(see Note
3).
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March 2026
Six months ended Year ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Profit for the period attributable to equity holders of the parent company 18,050 24,591 48,814
Exchange differences on retranslation of foreign operations - - 731
Items that will not be reclassified to profit or loss:
Movement in actuarial valuation of the defined benefit pension schemes - - (441)
Movement on deferred tax relating to the defined benefit pension schemes - -
111
Total items that will not be reclassified to profit or loss - - (330)
Total comprehensive income for the period attributable to equity holders of 18,050 24,591 49,215
the parent company
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2026
Share Capital Cumulative Share based Total
Share premium redemption translation payments Retained equity
capital account reserve reserve reserve earnings Unaudited
£000 £000 £000 £000 £000 £000 £000
At 1 October 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
Transfer from income statement for the period 24,223 24,223
Dividends paid (5,280) (5,280)
Recognition of share based payments 439 439
Vested share option transfer (1) 1 -
Exchange differences on retranslation of foreign operations 731 731
Actuarial movement recognised in the pension schemes (441) (441)
Movement on deferred tax relating to the pension schemes
111 111
At 30 September 2025 7,916 66,419 3,896 731 1,617 160,558 241,137
Transfer from income statement for the period 18,050 18,050
Dividends paid (10,552) (10,552)
Recognition of share based payments 531 531
Vested share option transfer (813) 813 -
At 31 March 2026 7,916 66,419 3,896 731 1,335 168,869 249,166
CONDENSED CONSOLIDATED BALANCE SHEET
at 31 March 2026
31 March 31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Non-current assets
Intangible assets - goodwill 195,392 192,877 194,377
- other 43,421 47,296 42,839
Property, plant and equipment 29,575 26,062 27,461
Right of use assets 33,339 26,743 29,362
Investment in joint ventures 3,622 3,736 3,681
Retirement benefit asset 2,435 2,954 2,435
307,784 299,668 300,155
Current assets
Inventories 17,067 13,135 14,514
Trade and other receivables 240,873 208,524 208,199
Current tax assets 895 1,812 1,557
Cash and cash equivalents 10,556 8,205 6,222
269,391 231,676 230,492
Total assets 577,175 531,344 530,647
Non-current liabilities
Lease liabilities (19,067) (15,570) (17,651)
Retirement benefit obligation - (641) -
Deferred tax liabilities (11,530) (12,269) (10,028)
Provisions (288) (338) (288)
(30,885) (28,818) (27,967)
Current liabilities
Borrowings - (20,000) -
Trade and other payables (268,672) (238,884) (235,022)
Lease liabilities (13,072) (9,353) (10,084)
Provisions (15,380) (12,935) (16,437)
(297,124) (281,172) (261,543)
Total liabilities (328,009) (309,990) (289,510)
Net assets 249,166 221,354 241,137
Share capital 7,916 7,916 7,916
Share premium account 66,419 66,419 66,419
Capital redemption reserve 3,896 3,896 3,896
Cumulative translation reserve 731 - 731
Share based payments reserve 1,335 1,179 1,617
Retained earnings 168,869 141,944 160,558
Total equity 249,166 221,354 241,137
CONDENSED CONSOLIDATED CASHFLOW STATEMENT
for the six months ended 31 March 2026
Six months Year ended
ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Profit for the period from continuing operating activities 18,927 17,754 44,410
Share of post-tax trading result of joint ventures 60 43 99
Amortisation of intangible assets 4,055 4,376 9,027
Research and development expenditure credit (685) (563) (4,803)
Depreciation of property, plant and equipment 8,992 7,439 15,909
Profit on sale of property, plant and equipment (266) (360) (643)
Increase in inventories (2,469) (634) (2,213)
Increase in receivables (29,947) (5,338) (5,956)
Increase/(decrease) in payables 30,981 2,626 (2,996)
Charge in respect of share options 531 400 839
Pension contribution - - (437)
Finance income (81) (199) (559)
Finance expense 1,463 2,824 4,506
Interest paid (1,463) (2,824) (4,632)
Income taxes paid (5,546) (2,767) (6,088)
Income tax expense 6,541 5,697 12,256
Net cash inflow from continuing operating activities 31,093 28,474 58,719
Net cash outflow from discontinued operating activities (788) (2,312) (254)
Net cash inflow from operating activities 30,305 26,162 58,465
Investing activities
Interest received 81 199 559
Proceeds on disposal of property, plant and equipment 545 489 1,109
Purchases of property, plant and equipment (4,174) (1,389) (5,868)
Acquisition of subsidiaries net of cash acquired (5,168) (47,373) (47,374)
Net cash outflow from investing activities (8,716) (48,074) (51,574)
Financing activities
Dividends paid (10,552) (10,029) (15,309)
Issue of Ordinary Shares - 2 2
New loan 27,000 20,000 35,000
Loan repayments (27,000) (52,000) (87,000)
Repayment of obligations under finance leases (6,703) (5,540) (11,046)
Net cash outflow from financing activities (17,255) (47,567) (78,353)
Net increase/(decrease) in continuing cash and cash equivalents 5,122 (67,167) (71,208)
Net decrease in discontinued cash and cash equivalents (788) (2,312) (254)
Net increase/(decrease) in cash and cash equivalents 4,334 (69,479) (71,462)
Cash and cash equivalents at the beginning of period 6,222 77,684 77,684
Cash and cash equivalents at the end of period 10,556 8,205 6,222
Bank balances and cash (see Note 10) 10,556 8,205 6,222
NOTES TO THE CONDENSED CONSOLIDATED ACCOUNTS
1 Basis of preparation
a) The condensed consolidated interim financial report for the six
months ended 31 March 2026 and the equivalent period in 2025 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 11 May 2026.
b) The accounts for the year ended 30 September 2025 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 2025
have been audited. The comparative figures for the period ended 31 March 2025
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 2025 as described in those financial statements.
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 2025. 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.
The Group comprises a single operating segment - Engineering Services.
(a) Geographical analysis
Group revenue from continuing activities:
Six months ended Year ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
UK 571,160 542,819 1,072,450
Europe 3,132 3,759 8,449
574,292 546,578 1,080,899
3 Exceptional items and amortisation of intangible assets
Six months ended Year ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Costs associated with acquisitions 2,456 1,475 2,283
Total losses arising from exceptional items 2,456 1,475 2,283
Amortisation of intangible assets 4,103 4,456 9,188
Total exceptional items and amortisation charge before income tax 6,559 5,931 11,471
Taxation credit on exceptional items and amortisation (1,026) (1,364) (2,797)
Total exceptional items and amortisation charge 5,533 4,567 8,674
During the period the Company incurred £118,000 of costs acquiring Emerald
Power Ltd.
Other costs include the deferred remuneration linked to the acquisition of
Excalon Holdings Ltd and Emerald Power Ltd.
4 (Loss)/profit for the period from discontinued operations
Six months ended Year ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Allenbuild ongoing cost provision (877) (663) (3,096)
Profit after tax on disposal of Walter Lilly (see note 9) - 7,500 7,500
(Loss)/profit from discontinued operations (877) 6,837 4,404
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
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Current tax:
UK corporation tax on profit for the period (5,902) (5,830) (14,148)
Adjustments in respect of previous periods (296) - 501
Total current tax (6,198) (5,830) (13,647)
Deferred tax (343) 133 1,391
Income tax expense (6,541) (5,697) (12,256)
6 Earnings per
share
Six months ended 31 March Six months ended 31 March Year ended 30 September
2026 2025 2025
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 30.90 30.88 28.20 28.20 53,084 67.07 67.06
24,460 22,321
Exceptional items and amortisation (6.99) (6.99) (5.77) (5.77) (8,674) (10.96) (10.96)
(5,533) (4,567)
Basic earnings per share - continuing activities 23.91 23.89 22.43 22.43 44,410 56.11 56.10
18,927 17,754
(Loss)/profit for the period from discontinued operations (1.11) (1.10) 8.64 8.64 4,404 5.56 5.56
(877) 6,837
Basic earnings per share 22.80 22.79 31.07 31.07 48,814 61.67 61.66
18,050 24,591
Weighted average number of shares 79,158 79,212 79,142 79,142 79,151 79,164
The dilutive effect of share options is to increase the number of shares by
53,730 (March 2025: Nil; September 2025: 13,000) and reduce the basic earnings
per share by 0.01p (March 2025: 0.00p; September 2025: 0.01p).
7 Dividends
The proposed interim dividend is 7.00p (2025: 6.67p) per share. This will be
paid out of the Company's available distributable reserves to shareholders on
the register on 5 June 2026, payable on 8 July 2026. The ex-dividend date will
be 4 June 2026. Dividends are recorded only when authorised and are shown as a
movement in equity.
8 Acquisition of subsidiary undertaking - Emerald Power Ltd
On 13 October 2025, Excalon Holdings Ltd ("Excalon"), a wholly owned
subsidiary of Renew Holding plc, acquired 100% of the issued share capital of
Emerald Power Ltd ("Emerald") for a gross cash consideration of up
to £11.3m.
This acquisition represents a strong strategic fit for the Group, further
expanding the Group's capabilities by taking Excalon into the fast-growing
overhead line maintenance and repair market across voltages ranging from 11kV
to 132kV. Emerald's expertise and established relationships will strengthen
the Group's position in the regulated electricity distribution sector.
The initial cash consideration of £6.8m has been funded from the Group's
existing banking facilities and was based upon Emerald having delivered an
adjusted EBITDA above £1.9m in the year ended 31 July 2025. Additional
consideration of up to £4.5m is conditional upon the vendors remaining with
the business and specific profit targets being achieved. As these payments are
linked to continuing employment of certain personnel, they are not included in
purchase consideration but are instead accounted for as deferred remuneration.
The provisional fair value of the assets and liabilities of Emerald at the
date of acquisition were:
Fair value
£000
Assets
Intangible assets 4,637
Property, plant and equipment 338
Right of use assets 808
Inventories 84
Trade and other receivables 2,727
Cash at bank 1,677
Total assets 10,271
Liabilities
Lease liabilities (1,065)
Trade and other payables (1,523)
Corporation tax (695)
Deferred tax liability (1,158)
Total liabilities (4,441)
Total identifiable net assets at fair value 5,830
Goodwill arising on acquisition 1,015
Purchase consideration transferred 6,845
Goodwill of £1,015,000 arose on acquisition and is attributable to the
expertise and workforce of the acquired business.
Other intangible assets valued at £4,637,000, 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 2025. Deferred tax has been provided
on this amount.
The fair value of trade and other receivables was £2.7m. The gross amount of
trade and other receivables was £2.7m and the full contractual amount has
been collected.
Transaction costs of £0.3m 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"). 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.
Walter Lilly was sold in the year ended 30 September 2025 and, consequently,
the profit on disposal was disclosed as a discontinued item (see note 4) in
the financial statements for that period.
10 Cash and cash equivalents
Six months ended Year ended
31 March 30 September
2026 2025 2025
Unaudited Unaudited Audited
£000 £000 £000
Cash at banks 10,556 8,205 6,212
Cash in hand - - 10
10,556 8,205 6,222
Analysis of net cash/(debt)
£000 £000 £000
Cash and cash equivalents 10,556 8,205 6,222
Bank loans - (20,000) -
Net cash/(debt) 10,556 (11,795) 6,222
Renew Holdings plc has not included lease liabilities within its measure of
net cash due to their asset-backed nature.
IFRS 16 measurement of debt
The equivalent figures on an IFRS 16 measure would be:
£000 £000 £000
Net cash/(debt) (as above) 10,556 (11,795) 6,222
Hire purchase liabilities (7,995) (6,051) (5,841)
Net cash/(debt) including hire purchase liabilities 2,561 (17,846) 381
Other IFRS 16 right of use liabilities (24,144) (18,872) (21,894)
Net debt including all lease liabilities on an IFRS 16 measure (21,583) (36,718) (21,513)
11 Post balance sheet event
a) Acquisition of subsidiary undertaking - Edwards Diving Services
Limited
On 30 April 2026 the Group announced that its wholly owned subsidiary, Envolve
Infrastructure Limited ("Envolve"), had acquired Ty Draig Group Limited
(holding company for Edwards Diving Services Limited ("EDS")) for a total
consideration of up to £13m on a cash and debt free basis. Initial cash
consideration of £10m has been funded from the Group's existing banking
facilities and is based upon a sustainable EBITDA of £1.3m. Additional cash
consideration of up to £3m is conditional upon the vendors remaining with the
business for an agreed period and specific profit targets being achieved.
EDS, based in Wales, is a provider of specialist marine and civil engineering
services to the water
industry, utilising in-house design and fabrication capability to deliver
complex engineering solutions within challenging environments. This
acquisition represents a strong strategic fit as well as expanding the Group's
capabilities by taking Envolve, and the wider Group, into increasingly
specialist water services, providing further growth opportunities as momentum
builds within the AMP8 control period.
Due to the very short timescale since the acquisition, it has been impractical
to provide the additional disclosures required under IFRS 3. The fair value
exercise for assets and liabilities has not commenced which means that the
full acquisition disclosures will be presented in the statutory accounts for
the year ended 30 September 2026.
b) Acquisition of subsidiary undertaking - PWR-X Limited
On 11 May 2026 the Group announced that its wholly owned subsidiary, Excalon
Limited ("Excalon"), has acquired PWR-X Limited ("PWR-X") for a total
consideration of £1.1m on a cash and debt free basis. Initial cash
consideration of £0.75m has been funded from the Group's existing banking
facilities.
PWR-X is a provider of specialist cable jointing services to the power
industry. This acquisition represents a strong strategic fit expanding
Excalon's direct delivery capability, enhancing its offering in the high
voltage power market.
Due to the very short timescale since the acquisition, it has been impractical
to provide the additional disclosures required under IFRS 3. The fair value
exercise for assets and liabilities has not commenced which means that the
full acquisition disclosures will be presented in the statutory accounts for
the year ended 30 September 2026.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFFTEVILLIR
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Renew Holdings
See all newsREG - Renew Holdings PLC - Half-year Report
AnnouncementREG - Renew Holdings PLC - Acquisition of PWR-X Ltd
AnnouncementREG - Renew Holdings PLC - Director/PDMR Shareholding
AnnouncementREG - Renew Holdings PLC - Acquisition of Edwards Diving Services Limited
AnnouncementREG - Renew Holdings PLC - Holding(s) in Company
Announcement