Pre-tax profit flat as the firm is hit by amortisation charges
Engineer Renew has reported a 56% jump in revenue following a brace of acquisitions.
In an announcement to the City this morning, Renew reported revenue for the 12 months to 30 September 2014 of 拢464m, up from 拢298m the previous year.
However, the firm reported pre-tax profit remained flat at 拢13m.
Renew鈥檚 pre-tax profit for 2014 was hit by 拢3m of exceptional items, including 拢2.2m of amortisation charges on its intangible assets.
In 2013, the firm鈥檚 pre-tax profit benefited from a 拢3.3m exceptional gain, largely due to the sale of land.
When these and other exceptional items such as restructuring costs and discontinued operations were taken out of the profit figures the firm reported a 65% rise in pre-tax profit to 拢16m, up from 拢10m.
The firm鈥檚 revenue was boosted by two acquisitions during the year. It acquired Clarke Telecom Limited, a wireless telecoms infrastructure delivery company, for 拢17.1m and Forefront Group Ltd, a engineer in the gas infrastructure market, for 拢14.8m.
Roy Harrison (pictured), chair of Renew, said the figures were 鈥渁nother record set of preliminary results for the group鈥�.
He added: 鈥淩enew enters the 2014/15 financial year in a strong position having made excellent progress in expanding its position as a leading provider of engineering support services with strong organic growth coupled with two acquisitions into new markets.鈥�
He said the firm鈥檚 鈥渞ecord order book鈥� of 拢439m gave him 鈥渃onfidence for the next financial year鈥�.
He added: 鈥淭he board has set targets for group revenue in excess of 拢500m and a group operating margin of at least 4.5% within the next three years.鈥�
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