Renew remains on course as engineering division buoyed by acquisition

Engineering group Renew Holdings reported that integration of newly acquired QTS has gone “extremely well”, as overall operations remain in line with market expectations.

The firm’s engineering services division is expected to perform "ahead of budget" and show further growth for the year ended 30 September after order book growth, an extensive portfolio of long-term framework contracts and a solid performance from QTS, which was acquired in May.

Meanwhile, Renew’s specialist building division has shrunk in size and now represents less than 5% of group operating profit as the division’s focus remains on contract selectivity and risk management

A statement on Monday said that the focus on selectivity resulted in a reduced level of trading across the full-year period but the division is still expected to remain profitable.

Ahead of the release of full results on 27 November, overall operating profit is projected to be “good”, while operating margins are also said to have seen further improvement.

Meanwhile, the AIM traded company’s net debt is also projected to remain in line with market expectations.

Renew Holdings’ shares were down 2.00% at 397.70p at 0825 BST.