Renew reports in-line interim results, raises dividend

(Sharecast News) - Engineering firm Renew has delivered interim results in line with revised expectations following a profit warning in January, with the company raising its dividend despite flat profits in the first half. The company, which provides engineering services for critical UK infrastructure, experienced an "unprecedented delay and deferment within certain Rail renewals programmes" during the six months to 31 March, meaning adjusted operating profits were down 1% on the previous year at £32m.

Nevertheless, group revenues were up 13% year-on-year at £569.3m, which Renew said was "driven by our diversified end market exposure and the consistent demand for our mission-critical services".

Meanwhile, the group's order book continued to hit new record levels at £908m by the period-end, up from £831m a year earlier.

The interim dividend was increased 5.4% to 6.7p per share.

"Renew's foundations have never been stronger in terms of the breadth of our service offering, our secured new and existing frameworks and our corresponding record order book," said chief executive Paul Scott.

"As we enter the second half of the year, we are well placed to deliver on our ambitious long-term growth strategy. As a result, the group remains confident in its ability to deliver against revised full-year expectations, which are ahead of the prior year."

Shares were up 2.1% at 811.4p in early deals on Tuesday.