For the year ended 30th September 2016, Renew鈥檚 group revenue increased 1% to 拢525.7m (2015: 拢519.6m). Pre-tax profit rose 20% to 拢19.4m (2015: 拢16.1m), even allowing for 拢2.9m amortisation of intangible assets arising from past acquisitions.
At a trading level, operating profit prior to amortisation was up by 8% to 拢22.0m (2015: 拢20.4m), a margin of 4.2% (2015: 3.9%).
Renew鈥檚 Engineering Services business, which accounts for 83% of group revenue (2015: 85%), saw its revenue reduced slightly to 拢436.2m (2015: 拢440.5m. This was attributed to non-recurring rail industry revenue in the previous year. Engineering Services operating profit prior to amortisation increased 7% to 拢21.5m (2015: 拢20.1m), delivering an improved margin of 4.9% (2015: 4.6%).
Renew鈥檚 Specialist Building operations, which focuses on the upscale residential market in London and the Home Counties, generated revenue of 拢90.5m (2015: 拢79.5m) with an operating profit of 拢2.3m (2015: 拢2.3m).
Chairman Roy Harrison said: 鈥淚n 2014, the group published 2017 targets of group revenue in excess of 拢500m, group operating profit margin prior to exceptional items and amortisation of 4.5% and growth in EPS on that basis of at least 40% from the reported level of 20.8p in 2014. The group has achieved its revenue target already and these results demonstrate substantial progress towards achieving the other targets.鈥�
Adjusted EPS (earnings per share) were 27.43p for fiscal 2016.
Brian May retired as chief executive of Renew as the financial year closed and has been succeeded by Paul Scott. Mr Harrison said: 鈥淭he board would like to thank Brian for his outstanding leadership of Renew over the last 11 years, during which he transformed the group from a loss-making building contractor into a leading business in engineering services and delivered an increase in market capitalisation from 拢17m to 拢229m without recourse to equity financing.鈥�
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