Renew reports 'satisfactory' first quarter

published 25 January 2012

Renew, an engineering services group supporting UK infrastructure, has reported that trading for the first quarter was 'satisfactory'.

The order book at the end of 2011 remained strong at £289m, up slightly from £283m the year before. Engineering Services had an order book of £197m, an increase of £18m since September 30th 2011.

Speaking at the annual general meeting, Chairman Roy Harrison said: "New awards in Engineering Services include the first contract under the Trunk Mains Cleansing Framework with Northumbrian Water. The project will commence in early February and is valued at over £5m."

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The group's Shepley Engineers unit has also been appointed to a three year framework agreement to provide engineering site support to the National Nuclear Laboratory at Sellafield, Harrison announced.

Brewin Dolphin said it would not be making any changes to its earnings estimates dollowing the statement.

"Renew's focus on UK regulated markets which benefit from non-discretionary spend ... and committed funding leaves it well placed to continue its record of growth in 2012 and beyond," the broker said.

Brewin Dolphn sticks with its "buy" recommendation and 110p price target.

The share price fell 1.83% to 80.50p by 14:26.