Amco acquisition boosts Renew Holdings plc
Pre-tax profit at Renew Holdings has grown by 76 per cent as the business hailed its repositioning as a specialist provider of engineering support to UK infrastructure.
Renew said the acquisition of Amco Group Holdings – shortlisted for turnaround deal of the year atInsider's Dealmaker Awards later this week – had helped accelerate this change of focus. The company has now set a new target of growing turnover past £500m by 2014.
Group revenue rose by £66m to £290.4m during the year to 30 September with its engineering services division accounting for £176.7m – up from £127.4m.
Renew, which also withdrew from non-specialist public sector building markets as part of its strategy, said it had achieved its target of generating at least 50 per cent of revenue from engineering activities by 2012.
The results include seven months of Amco's trading, which Renew said had integrated "very well" into the group.
Pre-tax profit prior to exceptional items and amortisation charges was £8.1m – up from £4.6m in 2010.
After achieving its strategic targets ahead of schedule, Renew said it hoped to grow turnover to more than £500m by 2014, achieved by acquisition and organic growth. Engineering services would hopefully provide 70 per cent of group revenue, it added.
"2011 has been a significant year for Renew, now successfully repositioned as a specialist provider of engineering services," said chairman Roy Harrison.
"The results demonstrate that the group can deliver sustainable, profitable growth from our key markets of energy, environmental and infrastructure. Our strong order book provides us with confidence that this will continue in 2012."