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Renew Holdings unveils rise in pre-tax profit

Engineering group Renew Holdings increased its dividend by five per cent to 1.10p per share following an increase in half-year pre-tax profit.

Engineering group Renew Holdings increased its dividend by five per cent to 1.10p per share following an increase in half-year pre-tax profit.

The company, which supplies services to UK infrastructure, reported a pre-tax profit of £4.6m for the six months to March 31st, up 7.0% from the prior year.

Operating profit, adjusted for amortisation charges of £250,000, jumped 8.0% to £5.2m while margins rose to 3.4% from 2.6%.

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Engineering services continued to drive profits with revenue in the division climbing 4.8% to £110.4m, boosted by a 14% increase in the order book to £261m. The unit represented 72% of group revenue.

However, group revenue fell 16.4% to £152.4m as the strong performance of engineering services failed to offset a 45.3% decline in specialist building revenue of £42m.

The specialist building division was hit by the delayed award of projects which is expected to pick up in the second half as orders are confirmed. The forward order book stood at £100m, compared to £75 a year earlier.

Overall, the group's order book was up 19% to £361m. Adjusted earnings per share increased 10% to 6.20p

"I am pleased to announce record interim results for Renew Holdings for the first half of 2013," said Chairman, Roy Harrison.

"The group has a record order book with all of our forecast revenue for the second half of the current financial year fully secured, enabling the board to look to the future, confident of delivering further profitable, cash generative growth."

He said the company has a strong pipeline of work to facilitate growth.

Shares edged up 1.96% to 104p at 10:43 Tuesday.

RD

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