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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Renew Holdings Plc | LSE:RNWH | London | Ordinary Share | GB0005359004 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 23.00 | 2.51% | 938.00 | 936.00 | 938.00 | 947.00 | 920.00 | 920.00 | 147,440 | 16:03:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gen Contractor-oth Residentl | 921.55M | 43.38M | 0.5482 | 17.06 | 739.9M |
From Apr 2019 to Apr 2024
TIDMRNWH
RNS Number : 0556Z
Renew Holdings PLC
24 May 2016
Renew Holdings plc
("Renew" or the "Group" or the "Company")
Interim Results
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces record interim results for the six months ended 31 March 2016. With a strong order book and expected revenue for H2 already fully secured, the Company is increasing its interim dividend in line with its progressive policy by 18% to 2.65p.
Financial Highlights
Hot Features
Premium
H1 2016 H1 2015
------------------------------ ---------- ---------- -----
Revenue GBP265.1m GBP252.1m +5%
------------------------------ ---------- ---------- -----
Adjusted operating profit* GBP10.5m GBP9.8m +7%
------------------------------ ---------- ---------- -----
Adjusted operating margin* 4.0% 3.9% + 3%
------------------------------ ---------- ---------- -----
Adjusted profit before tax* GBP10.3m GBP9.5m +9%
------------------------------ ---------- ---------- -----
Adjusted earnings per share* 13.31p 12.24p +9%
------------------------------ ---------- ---------- -----
Interim dividend per share 2.65p 2.25p +18%
------------------------------ ---------- ---------- -----
*Adjusted results are stated prior to amortisation charges
Operational Highlights
-- Order book up 9% to GBP515m (H1 2015: GBP471m)
-- 9% increase in Engineering Services order book to GBP416m (H1 2015: GBP382m)
-- Expected revenue for H2 secured
-- Engineering Services revenue up 6% to GBP221.3m (2015: GBP209.8m)
-- 12% organic growth, excluding non-recurring revenue recorded in 2015
-- Further reduction in net debt to GBP4.2m (2015: GBP13.9m)
-- The Board expects to report net cash at the end of this financial year
-- Interim dividend increased by 18% to 2.65p per share (2015: 2.25p)
Board Changes
-- Brian May retires as Chief Executive on 30 September 2016 -- Paul Scott, currently Director of Engineering Services, will succeed Brian May -- Board strengthened by appointment of Andries Liebenberg, Rail Managing Director
R J Harrison OBE, Chairman said: "Renew has delivered another strong set of financial results which demonstrate the success of the Board's strategy of direct delivery of engineering support services to the country's critical infrastructure. The Board expects further progress in the second half of the financial year and the Group is well positioned to achieve its target of a 4.5% Group operating margin for the year ended 30 September 2017."
Renew Holdings plc Tel: 0113 281 4200 Brian May, Chief Executive John Samuel, Group Finance Director Numis Securities Limited Tel: 020 7260 1000 Stuart Skinner/Kevin Cruickshank (Nominated Adviser) Michael Burke (Corporate Broker) Walbrook PR Tel: 020 7933 8780 or renew@walbrookpr.com Paul McManus Mob: 07980 541 893 Lianne Cawthorne Mob: 07584 391 303
About Renew Holdings plc
Engineering Services, which accounts for approximately 85% of Group revenue and 90% of operating profit, focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
Specialist Building focuses on the High Quality Residential market in London and the Home Counties.
For more information please visit the Renew Holdings plc website: www.renewholdings.com
Chairman's Statement
The Group has again delivered record interim results with further growth in both revenue and operating profit. The Group continues to see positive results from its strategy of focusing on providing essential engineering services into regulated markets where long-term maintenance and renewal requirements are funded mainly through operational expenditure budgets.
Results
Group operating profit, prior to amortisation charges, increased by 7% to GBP10.5m (2015: GBP9.8m), on revenue up 5% to GBP265.1m (2015: GBP252.1m). Operating margin measured on this basis increased to 4.0% (2015: 3.9%) with earnings per share prior to amortisation charges increasing by 9% to 13.31p (2015: 12.24p). Profit before income tax increased by 14% to GBP8.8m (2015: GBP7.7m).
In Engineering Services, revenue grew by 6% to GBP221.3m (2015: GBP209.8m), representing 84% (2015: 83%) of Group revenue with operating profit prior to amortisation charges increasing by 8% to GBP10.4m (2015: GBP9.7m), giving an improved operating margin of 4.7% (2015: 4.6%).
In Specialist Building, the Board continues to focus on contract selectivity and risk management. The business, which operates mainly in the High Quality Residential market in London and the Home Counties, delivered an operating profit of GBP1.1m (2015: GBP1.0m) on revenue of GBP44.4m (2015: GBP42.5m).
Dividend
In line with its progressive policy, the Board is increasing the interim dividend by 18% to 2.65p (2015: 2.25p) per share which will be paid on 4 July 2016 to shareholders on the register at 3 June 2016.
Order book
The Group's order book at 31 March 2016 increased by 9% to GBP515m (2015: GBP471m). The Group's expected revenue for the second half of the financial year is fully secured.
Cash
At 31 March 2016, the Group had net debt of GBP4.2m (2015: GBP13.9m). The Board expects to report a net cash position at the end of the financial year.
Board changes
In March 2016, Brian May announced his retirement as Chief Executive, effective 30 September 2016. Paul Scott, who is currently Director of Engineering Services, will succeed Brian. Paul joined the Board in 2014 and was previously Managing Director of the Group's principal nuclear business, Shepley Engineers Limited.
The Board was strengthened further by the appointment on 31 March 2016 of Andries Liebenberg, Managing Director of the Group's largest business, Amco Rail, which is a leading supplier of infrastructure services to Network Rail.
Outlook
The Group continues to make good progress as a leading provider of engineering support services in the UK's Energy, Environmental and Infrastructure markets. The requirement for long-term maintenance and renewal activities drives programmes of non-discretionary spending in our target markets, often over several years, which provides good visibility of future workload with committed funding.
It remains the Board's strategy to grow our Engineering Services business, both organically and through selective earnings enhancing acquisitions. The growth in our order book and good cash generation gives the Board confidence that the Group will deliver strong results for the full financial year. Renew remains on track to achieve its target of a 4.5% Group operating margin for the year ending 30 September 2017.
R J Harrison OBE
Chairman
24 May 2016
Chief Executive's Review
As a leading provider of engineering services supporting critical UK infrastructure, Renew operates in the Energy, Environmental and Infrastructure markets. These mainly regulated markets, which include nuclear and fossil power generation sites, water and gas pipelines and the rail and wireless telecoms networks, have high barriers to entry.
Engineering Services
During the first half of the financial year, Engineering Services revenue grew by 6% to GBP221.3m (2015: GBP209.8m) and accounted for 84% (2015: 83%) of Group revenue. When non-recurring revenue recorded in 2015 is excluded, organic growth was 12%. Operating profit prior to amortisation increased by 8% to GBP10.4m (2015: GBP9.7m) with an operating margin of 4.7% (2015: 4.6%) with further improvement expected in the second half of the financial year.
At 31 March 2016, the Engineering Services order book was GBP416m (2015: GBP382m), an increase of 9%.
Energy
Renew provides integrated engineering support to assets in the nuclear, fossil, gas and renewable energy markets.
In Nuclear, the Group is active on 14 of the Nuclear Decommissioning Authority's 17 nuclear licenced sites across the UK. The majority of our work is undertaken at the Sellafield nuclear site in Cumbria where we have operated for almost 70 years and are the largest mechanical and electrical contractor on site. Our work is delivered through 11 framework agreements focusing on the long-term care and maintenance of operational plant in the waste treatment or reprocessing, decommissioning, demolition and clean up operations.
We continue to develop our range of integrated engineering services and recently expanded our capabilities with the acquisition of Nuclear Decontamination Services Limited, which operates at Sellafield as well as other UK nuclear sites.
The strength of our relationships at Sellafield is evidenced by our recent appointment to the major 10-year Decommissioning Delivery Partnership Framework which has an estimated value of GBP500m over the term. This framework is an essential part of Sellafield's long-term decommissioning strategy and includes provision for additional spend up to GBP1.5bn.
We continue to see good volumes of work on the established Multi Discipline Site Works Framework which runs to 2017 and is aligned to the largest scope of work at the Sellafield site, Production Operations Support. Other frameworks include the Bulk Sludge Retrieval programme, Site Remediation & Decommissioning Projects and the Bundling Spares Framework.
Working nationally for Magnox, the UK's largest nuclear decommissioning company, we operate as sole provider on the GBP30m E, C&I framework, recently completing the first year of this 4-year framework. Elsewhere, we have increased our workload with Westinghouse at Springfields where we have operated for over 20 years and we continue to be engaged in outage support at the Heysham and Hartlepool reactor sites.
In gas, our addressable market on the 30/30 Iron Mains Replacement Programme, which runs to 2032, is both substantial and visible. As I reported last year, revenue flow from frameworks for the delivery of these programmes has been slow and as a result this business has continued to perform below our expectations. Increasingly, our focus is on the large diameter medium pressure market in London where our particular skills are highly valued by our clients.
Environmental
We provide maintenance, renewal and emergency reactive services to support water and sewer infrastructure, flood alleviation and coastal protection works.
For Northumbrian Water, we operate as one of two providers on the GBP14m per annum AMP 6 Sewerage Repairs and Maintenance Framework. Work is also undertaken on the Major Waste Water, Clean Water and Maintenance and Trunk Mains Cleaning frameworks.
We have maintained our strong relationship with Wessex Water with our appointment to the AMP 6 Civils and EMI Delivery Partners Framework. This arrangement, which runs to 2020, is estimated at GBP350m over the term with potential for extension through the next AMP 7 period. In addition, we remain involved on their new Integrated Grid programme as well as on a range of civil engineering schemes.
Our long established relationship with Welsh Water continues with work being delivered via the Pressurised Pipelines Framework, the Major Civils Framework and the Emergency Reactive framework.
The first half of the year has seen good progress on the Environment Agency's GBP10m MEICA Framework which covers flood and water management sites throughout the Northern Region to 2019. In addition, works have commenced to repair the electrical system at the Fosse Barrier in York following our provision of emergency support during the winter flooding. Work is also undertaken nationally for the Environment Agency on four minor works frameworks.
In Land Remediation, we work for National Grid on a number of frameworks. During the period, we have also secured an GBP11m contract at Sighthill for Glasgow City Council.
Our long running specialist restoration activity at the Palace of Westminster is progressing with work well advanced on the second of four projects on the Cast Iron Roof programme. In the period we were also appointed to the four year Courtyards Conservation framework at this site.
Infrastructure
As one of the leading infrastructure services providers to Network Rail, we undertake off-track planned, reactive and emergency maintenance and renewal works.
We are sole provider on seven Infrastructure Projects frameworks with an advertised value of GBP450m over the five-year term of the current CP5 investment period. We also undertake high volumes of individual tasks through six Asset Management frameworks. These cover a wide range of essential assets including bridges, tunnels and embankments. We continue to develop our position as the major structures renewals and sole maintenance contractor in Scotland and notable schemes have included coastal line protection works at Saltcoats.
Our locally based delivery teams provide a 24/7 emergency response service on the rail network. The severe weather around the turn of the year saw our teams respond to critical infrastructure requirements for Network Rail. This included emergency works at Lamington Viaduct in the Upper Clyde Valley where the main line from Carlisle to Glasgow was closed for several weeks to repair extensive damage caused by flooding. We returned the line to operation ahead of schedule.
New awards include the three-year, GBP15m Historic Railways Estate Works framework for Highways England.
In wireless telecoms we work for the UK's cellular network operators and original equipment manufacturers. The corporate M&A activity in this market during 2015 caused volatility and adversely impacted our financial performance. Whilst the business has not yet returned to deliver our originally expected level of margin, it has traded profitably and in line with budget in the first half of this financial year. Consumer demand for faster, more capable mobile connectivity is driving the installation and expansion of 4G services which continues to provide the majority of our work.
Specialist Building
The Group has particular expertise and focuses on the major structural engineering works required in many High Quality Residential refurbishment projects in London and the Home Counties.
In the first half of the financial year Specialist Building revenue was GBP44.4m (2015: GBP42.5m), with an operating profit of GBP1.1m (2015: GBP1.0m). The forward order book increased by 11% to GBP99m (2015: GBP89m). This market remains robust and the Group has fully secured revenue for the second half of this financial year with very good visibility of workload through 2017.
Strategy
We continue to pursue our strategy of maximising organic growth whilst seeking further earnings enhancing acquisitions. Our independently branded subsidiary businesses deliver a large volume of tasks across critical infrastructure networks, supporting their day-to-day operation. Delivering planned and emergency maintenance services for our clients with our responsive, directly employed workforce provides a key differentiator in our markets, producing growth opportunities.
Brian May
Chief Executive
24 May 2016
Group income statement
for the six months ended 31 March 2016
Before Before
amortisation Amortisation amortisation Amortisation Year
of of Six months of of ended
intangible intangible ended intangible intangible 30
assets assets 31 March assets assets September
2016 2016 2016 2015 2015 2015 2015
Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Group revenue
from
continuing
activities 2 265,079 - 265,079 252,148 519,645 - 519,645
Cost of sales (234,261) - (234,261) (221,749) (462,154) - (462,154)
-------------- -------------- ----------- ----------- ------------- ------------- ----------
Gross profit 30,818 - 30,818 30,399 57,491 - 57,491
Administrative
expenses (20,340) (1,477) (21,817) (22,343) (37,121) (3,536) (40,657)
-------------- -------------- ----------- ----------- ------------- ------------- ----------
Operating
profit 2 10,478 (1,477) 9,001 8,056 20,370 (3,536) 16,834
Finance income 131 - 131 124 27 - 27
Finance costs (333) - (333) (518) (939) - (939)
Other finance
income
- defined
benefit
pension
schemes - - - 49 189 - 189
-------------- -------------- ----------- ----------- ------------- ------------- ----------
Profit before
income
tax 2 10,276 (1,477) 8,799 7,711 19,647 (3,536) 16,111
Income tax
expense 4 (2,026) 266 (1,760) (1,581) (3,579) 636 (2,943)
-------------- -------------- ----------- ----------- ------------- ------------- ----------
Profit for the
period
from
continuing
activities 8,250 (1,211) 7,039 6,130 16,068 (2,900) 13,168
Loss for the
period
from
discontinued
operations 3 - - (7,263)
----------- ----------- ----------
Profit for the
period
attributable
to equity
holders of the
parent
company 7,039 6,130 5,905
----------- ----------- ----------
Basic earnings
per share
from
continuing
activities 5 11.35p 9.96p 21.34p
Diluted
earnings per
share from
continuing
activities 5 11.26p 9.84p 21.06p
----------- ----------- ----------
Basic earnings
per share 5 11.35p 9.96p 9.57p
Diluted
earnings per
share 5 11.26p 9.84p 9.44p
----------- ----------- ----------
Proposed
dividend 6 2.65p 2.25p 7.00p
----------- ----------- ----------
*Operating profit for the six months ended 31 March 2015 is stated after charging GBP1,749,000 of amortisation cost.
Group statement of comprehensive income
for the six months ended 31 March 2016
Six months ended Year ended
31 March 30 September
2016 2015 2015
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Profit for the period attributable
to equity holders of the parent company 7,039 6,130 5,905
---------- ---------- -------------
Items that will not be reclassified
to profit or loss:
Movement in actuarial valuation of
the defined benefit pension schemes - - 8,880
Movement on deferred tax relating
to the defined benefit pension schemes - - (1,570)
---------- ---------- -------------
Total items that will not be reclassified
to profit or loss - - 7,310
---------- ---------- -------------
Items that are or may be reclassified
subsequently to profit or loss:
Exchange movement in reserves 135 261 304
---------- ---------- -------------
Total items that are or may be reclassified
subsequently to profit or loss 135 261 304
---------- ---------- -------------
Total comprehensive income for the
period attributable to equity holders
of the parent company 7,174 6,391 13,519
---------- ---------- -------------
Group statement of changes in equity
for the six months ended 31 March 2016
Called Share Capital Cumulative Share Total
up based
share premium redemption translation payments Retained equity
capital account reserve adjustment reserve earnings Unaudited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October 2014 6,152 5,942 3,896 752 292 (3,160) 13,874
Transfer from income
statement for the period 6,130 6,130
Dividends paid (2,153) (2,153)
New shares issued 40 1,047 1,087
Recognition of share
based payments (85) (85)
Exchange differences 261 261
-------- -------- ----------- ------------ --------- ---------- ----------
At 31 March 2015 6,192 6,989 3,896 1,013 207 817 19,114
Transfer from income
statement for the period (225) (225)
Dividends paid (1,393) (1,393)
Recognition of share
based payments 120 120
Exchange differences 43 43
Actuarial gains recognised
in pension schemes 8,880 8,880
Movement on deferred
tax relating to the pension
schemes (1,570) (1,570)
-------- -------- ----------- ------------ --------- ---------- ----------
At 30 September 2015 6,192 6,989 3,896 1,056 327 6,509 24,969
Transfer from income
statement for the period 7,039 7,039
Dividends paid (2,960) (2,960)
New shares issued 40 1,492 1,532
Recognition of share
based payments 11 11
Exchange differences 135 135
-------- -------- ----------- ------------ --------- ---------- ----------
At 31 March 2016 6,232 8,481 3,896 1,191 338 10,588 30,726
-------- -------- ----------- ------------ --------- ---------- ----------
Group balance sheet
at 31 March 2016
31 March 30 September
2016 2015 2015
(Restated*)
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Non-current assets
Intangible assets
- goodwill 56,260 56,060 56,060
- other 2,757 6,021 4,234
Property, plant and equipment 14,095 12,958 13,101
Retirement benefit assets 17,284 3,136 15,154
Deferred tax assets 1,673 2,941 1,718
---------- ------------ -------------
92,069 81,116 90,267
---------- ------------ -------------
Current assets
Inventories 5,077 4,559 4,864
Trade and other receivables 94,452 100,962 96,960
Assets held for resale 1,567 - -
Current tax assets 1,389 - 2,187
Cash and cash equivalents 8,192 4,705 10,662
110,677 110,226 114,673
---------- ------------ -------------
Total assets 202,746 191,342 204,940
---------- ------------ -------------
Non-current liabilities
Borrowings (6,200) (12,400) (9,300)
Obligations under finance
leases (2,134) (2,831) (2,514)
Retirement benefit obligations (407) - (599)
Deferred tax liabilities (3,654) (1,190) (3,537)
Provisions (580) (1,232) (1,232)
---------- ------------ -------------
(12,975) (17,653) (17,182)
---------- ------------ -------------
Current liabilities
Borrowings (6,200) (6,200) (6,200)
Trade and other payables (149,881) (144,822) (153,612)
Obligations under finance
leases (2,944) (2,519) (2,609)
Current tax liabilities - (666) -
Provisions (20) (368) (368)
(159,045) (154,575) (162,789)
---------- ------------ -------------
Total liabilities (172,020) (172,228) (179,971)
Net assets 30,726 19,114 24,969
---------- ------------ -------------
Share capital 6,232 6,192 6,192
Share premium account 8,481 6,989 6,989
Capital redemption reserve 3,896 3,896 3,896
Cumulative translation
adjustment 1,191 1,013 1,056
Share based payments
reserve 338 207 327
Retained earnings 10,588 817 6,509
---------- ------------ -------------
Total equity 30,726 19,114 24,969
---------- ------------ -------------
*2015 comparative balance sheet has been restated to
reflect fair value adjustments recognised in the year
ended 30 September 2015 statutory accounts.
Group cashflow statement
for the six months ended 31 March 2016
Six months ended Year ended
31 March 30 September
2016 2015 2015
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Profit for the period from continuing
operations 7,039 6,130 13,168
Amortisation of intangible assets 1,477 1,749 3,536
Depreciation 1,968 2,152 3,927
Profit on sale of property, plant and
equipment (275) (60) (278)
Charge in respect of share option exercise 1,532 1,087 1,087
Increase in inventories (91) (355) (586)
Increase in receivables (2,063) (15,215) (14,191)
Increase in payables 253 11,678 18,741
Current service cost in respect of defined
benefit pension scheme 29 29 248
Cash contribution to defined benefit
schemes (2,322) (1,680) (4,279)
Charge/(credit) in respect of share options 11 (85) 35
Finance income (131) (124) (27)
Finance costs and expense 333 469 750
Interest paid (333) (518) (939)
Income taxes paid (800) (1,675) (3,066)
Income tax expense 1,760 1,581 2,943
Net cash inflow from continuing operating
activities 8,387 5,163 21,069
Net cash outflow from discontinued operating
activities (2,003) (168) (3,590)
----------------- ---------------- -------------
Net cash inflow from operating activities 6,384 4,995 17,479
----------------- ---------------- -------------
Investing activities
Interest received 131 124 27
Proceeds on disposal of property, plant
and equipment 359 106 530
Purchases of property, plant and equipment (1,471) (585) (1,454)
(Acquisition)/disposal of subsidiaries
net of cash acquired (208) 1,142 1,135
----------------- ---------------- -------------
Net cash (outflow)/inflow from continuing
investing activities (1,189) 787 238
Net cash inflow from discontinued investing
activities - 168 162
----------------- ---------------- -------------
Net cash (outflow)/inflow from investing
activities (1,189) 955 400
----------------- ---------------- -------------
Financing activities
Dividends paid (2,960) (2,153) (3,546)
Loan repayments (3,100) (3,100) (6,200)
Repayment of obligations under finance
leases (1,620) (1,585) (3,067)
----------------- ---------------- -------------
Net cash outflow from financing activities (7,680) (6,838) (12,813)
----------------- ---------------- -------------
Net (decrease)/increase in continuing
cash and cash equivalents (482) (888) 8,494
Net decrease in discontinued cash and
cash equivalents (2,003) - (3,428)
----------------- ---------------- -------------
Net (decrease)/increase in cash and cash
equivalents (2,485) (888) 5,066
Cash and cash equivalents at the beginning
of the period 10,662 5,586 5,586
Effect of foreign exchange rate changes 15 7 10
Cash and cash equivalents at the end
of the period 8,192 4,705 10,662
----------------- ---------------- -------------
Bank balances and cash 8,192 4,705 10,662
----------------- ---------------- -------------
NOTES TO THE ACCOUNTS
Note 1 - Basis of preparation
(a) The consolidated interim financial report for the six months ended 31 March 2016 and the equivalent period in 2015 have not been audited or reviewed by the Group's auditor. They do not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. They have been prepared under the historical cost convention and on a going concern basis in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim financial report does not comply with IAS34 "Interim Financial Reporting", which is not currently required to be applied for AIM companies. This interim report was approved by the Directors on 24 May 2016.
(b) The accounts for the year ended 30 September 2015 were prepared under IFRS 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 2015 have been audited. The comparative figures for the period ended 31 March 2015 are unaudited.
(c) For the year ending 30 September 2016, there are no new accounting standards, which have been adopted by the EU, applied and implemented for this interim financial report.
(d) On 31 October 2014 Places for People Group Limited ("PFP") acquired 50% of the ordinary share capital of Allenbuild Ltd, a Specialist Building subsidiary. PFP acquired the remaining 50% on 31 January 2016. Consequently, Allenbuild Ltd has been treated as a discontinued business.
(e) The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future.
This interim statement is being sent to all shareholders and is also available upon request from the Company Secretary, Renew Holdings plc, Yew Trees, Main Street North, Aberford, West Yorkshire LS25 3AA, or via the website www.renewholdings.com.
Note 2 - Segmental analysis
Operating segments have been identified based on the internal reporting information provided to the Group's Chief Operating Decision Maker. From such information, Engineering Services and Specialist Building have been determined to represent operating segments.
Six months ended Year ended
31 March 30 September
2016 2015 2015
Unaudited Unaudited Audited
Revenue is analysed as follows: GBP000 GBP000 GBP000
Engineering Services 221,345 209,753 440,502
Specialist Building 44,375 42,477 79,492
Inter segment revenue (641) (82) (380)
---------- -------------------------- --------------
Segment revenue 265,079 252,148 519,614
Central activities - - 31
---------- -------------------------- --------------
Group revenue from continuing
operations 265,079 252,148 519,645
---------- -------------------------- --------------
Before Before
amortisation Amortisation amortisation Amortisation
of of intangible of of Year ended
intangible assets Six months ended intangible intangible 30
assets 31 March assets assets September
2016 2016 2016 2015 2015 2015 2015
Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Analysis of
operating
profit
Engineering
Services 10,406 (1,477) 8,929 7,916 20,055 (3,536) 16,519
Specialist
Building 1,054 - 1,054 1,046 2,274 - 2,274
------------- ---------------- ---------- ----------- ------------- -------------- -----------
Segment
operating
profit 11,460 (1,477) 9,983 8,962 22,329 (3,536) 18,793
Central
activities (982) - (982) (906) (1,959) - (1,959)
------------- ---------------- ---------- ----------- ------------- -------------- -----------
Operating
profit 10,478 (1,477) 9,001 8,056 20,370 (3,536) 16,834
Net
financing
expense (202) - (202) (345) (723) - (723)
------------- ---------------- ---------- ----------- ------------- -------------- -----------
Profit
before
income tax 10,276 (1,477) 8,799 7,711 19,647 (3,536) 16,111
------------- ---------------- ---------- ----------- ------------- -------------- -----------
*Operating profit for the six months ended 31 March 2015 is stated after charging GBP1,749,000 of amortisation cost.
Note 3 - Discontinued operations
Six months ended Year ended
31 March 30 September
2016 2015 2015
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Revenue 4,876 19,343 31,947
Expenses (4,876) (19,343) (41,278)
Profit on disposal - - 1,250
-------- ---------- ---------
Loss before income tax - - (8,081)
Income tax credit - benefit
of tax losses - - 818
-------- ---------- ---------
Loss for the period from
discontinued operations - - (7,263)
-------- ---------- ---------
Note 4 - Income tax expense
Six months ended Year ended
31 March 30 September
2016 2015 2015
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Current tax:
UK corporation tax on profits
for the period (1,598) (1,646) (2,360)
Adjustments in respect of previous
periods - - 1,359
---------- ---------- -------------
Total current tax (1,598) (1,646) (1,001)
Deferred tax (162) 65 (1,942)
---------- ---------- -------------
Income tax expense (1,760) (1,581) (2,943)
---------- ---------- -------------
Note 5 - Earnings per share
Six months ended 31
March Year ended 30 September
2016 2015 2015
Unaudited Unaudited Audited
Earnings EPS DEPS Earnings EPS DEPS Earnings EPS DEPS
GBP000 Pence Pence GBP000 Pence Pence GBP000 Pence Pence
Earnings
before
amortisation 8,250 13.31 13.20 7,529 12.24 12.09 16,068 26.03 25.70
Amortisation (1,211) (1.96) (1.94) (1,399) (2.28) (2.25) (2,900) (4.69) (4.64)
---------- ----------- -------- --------- ----------- ------- --------- -------------- ----------
Basic earnings
per share -
continuing
operations 7,039 11.35 11.26 6,130 9.96 9.84 13,168 21.34 21.06
Loss for the
period from
discontinued
operations - - - - - - (7,263) (11.77) (11.62)
---------- ----------- -------- --------- ----------- ------- --------- -------------- ----------
Basic earnings
per share 7,039 11.35 11.26 6,130 9.96 9.84 5,905 9.57 9.44
---------- ----------- -------- --------- ----------- ------- --------- -------------- ----------
Weighted
average
number of
shares 62,001 62,524 61,525 62,286 61,718 62,533
----------- -------- ----------- ------- -------------- ----------
The dilutive effect of share options is to increase the number of shares by 523,000 (March 2015: 761,000; September 2015: 815,000) and reduce basic earnings per share by 0.09p (March 2015: 0.12p; September 2015: 0.13p). On 15 January 2016, 400,000 new Ordinary shares of 10p each were issued following the exercise of share options bringing the total number in issue to 62,317,948.
Note 6 - Dividends
The proposed interim dividend is 2.65p per share (2015: 2.25p). This will be paid out of the Company's available distributable reserves to shareholders on the register on 3 June 2016, payable on 4 July 2016. In accordance with IAS 1, dividends are recorded only when paid and are shown as a movement in equity rather than as a charge in the income statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEAFIDFMSEII
(END) Dow Jones Newswires
May 24, 2016 02:00 ET (06:00 GMT)
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