Renew Holdings PLC on Tuesday said it remains confident in meeting full-year expectations despite some challenges in the first-half.
Shares in Renew were 1.4% higher at 806.00 pence each in London on Tuesday morning.
The Leeds, England-based engineering services group said pretax profit rose 5.0% to £31.0 million in the six months to March 31 from £29.5 million a year prior.
Adjusted operating profit fell 1.0% to £32.0 million from £32.3 million, due to delay and deferment within certain Rail programmes, with an adjusted operating margin of 5.6%, down from 6.4% a year ago.
But Renew said trading conditions in Rail are ‘specific and isolated’ and it fully anticipates regulatory drivers in the sector to compel planned renewals across the network.
Revenue increased 13% to £569.3 million from £505.4 million.
Renew said order book development continues at ‘record levels’ to £908 million, up 9.3% from £831 million a year ago.
Chief Executive Paul Scott said the financial performance was in line with revised expectations.
‘To have achieved this, despite unprecedented delay and deferment within certain Rail renewals programmes, serves to demonstrate the resilient and increasingly diverse nature of our business model,’ he added.
Looking ahead, Scott said Renew remains confident ‘in its ability to deliver against revised full year expectations, which are ahead of the prior year.’
In the year ending September 2024, Renew reported revenue of £1.06 billion, pretax profit of £60.2 million and adjusted operating profit of £70.9 million.
Renew said it continues to have an ‘active’ M&A pipeline supported by a strong balance sheet.
The interim dividend was increased by 5.4% to 6.7 pence from 6.3p.
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