Shareholders in Renew Holdings (RNWH) were the recipients of a festive giveaway as the engineering group bumped up its dividend by 39 per cent on the back of record full-year results. The Leeds-based group increased adjusted pre-tax profits by nearly a third to over £16m, while a step-up in new business for the key engineering services division has brought Renew's three-year revenue target within sight.
Renew takes a prudent accounting line when booking new business, which makes the 21 per cent rise in its full-year order book all the more impressive. The group has made particularly strong inroads in its rail and nuclear markets. Network Rail has appointed Renew's AMCO Rail subsidiary to work on seven infrastructure frameworks, with an advertised value of £450m over the next five years.
Renew continued to expand the range of its capabilities through the acquisition of both Clarke Telecom and Forefront Group. But the group also confirmed the sale of its affordable housing division, Allenbuild, earlier this month. That deal forms part of a strategic shift away from construction markets, now virtually complete. The only building-related business Renew has chosen to keep focuses on high-end residential refurbishment projects in London and the Home Counties - a market that continues to see strong demand.
WH Ireland has increased its forecast for 2014-15 EPS by 2 per cent to 24.9p.
| RENEW HOLDINGS (RNWH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 307p | MARKET VALUE: | £188m | |
| TOUCH: | 303p-310p | 12M HIGH / LOW: | 325p | LOW: 154p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 23p* | NET DEBT: | 116% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 290 | 4.0 | 4.6 | 3.0 |
| 2011 | 353 | 2.6 | 2.2 | 3.0 |
| 2012 | 337 | 8.4 | 7.9 | 3.2 |
| 2013 (restated) | 298 | 13.0 | 16.6 | 3.6 |
| 2014 | 464 | 13.1 | 16.8 | 5.0 |
| % change | +56 | 0.05 | +1 | +39 |
Ex-div: 29 Jan Payment: 2 Mar *Includes intangible assets of £61m, or 99p a share. | ||||
