For the year ended 30th September 2017, Renew posted pre-tax profit down 16% to 拢16.3m (2016: 拢19.4m) on revenue up 7% to 拢560.8m (2016: 拢525.7m).
However, stripping out impairment charges, amortisation and exceptional items of 拢8.9m puts operating profit in a better light, up 18% to 拢25.6m (2016: 拢22.0m) with an adjusted operating margin of 4.6%, up from 4.2% last year.
At the end of April 2017, Renew decided to withdraw from its loss-making low pressure, small diameter gas pipe replacement activities, resulting in an impairment charge of 拢5.8m, which was previously reported in the half-year results. Renew鈥檚 gas operations are now solely focused on medium pressure activities. The restructuring resulted in 拢600,000 of exceptional charges relating to redundancy and other costs.
The balance sheet is strong 鈥� the company will be debt free by 31st March 2018.
Chairman Roy Harrison said: "The board is confident that Renew will continue to grow its position in its target engineering markets whilst delivering further strong financial results."
Mr Harrison retires as chairman following the annual general meeting on 31st January 2018, to be succeeded by David Forbes.
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