Renew Holdings (RNWH) CMD 2024 summary

Strategic direction and market positioning

• Maintains disciplined focus on non-discretionary UK infrastructure maintenance and renewals, supported by £600bn government investment until 2029 and high barriers to entry.

• Achieved a 17% CAGR over five years, with balanced organic and inorganic growth, including 11 acquisitions and a robust M&A pipeline targeting transmission, distribution, and renewables.

• Holds market-leading positions in rail and water, with deep integration in national programs and a lower risk profile due to direct delivery and asset-light model.

• Positioned to benefit from the green infrastructure agenda, net zero 2050 targets, and increased climate resilience requirements.

• Collaboration across subsidiaries leverages expertise, opens new markets, and secures significant framework positions worth £165m over the next three years.

Financial performance and growth outlook

• Achieved year-on-year growth in revenue (£961m), adjusted operating profit (£63.6m), and EPS (63.5p) in 2023, with a 17% EPS CAGR from 2011–2023.

• Delivered strong organic growth, high cash generation, and a 5.5% interim dividend increase, with a consistent 27% average return on capital over four years.

• Engineering services order book reached £777m in 2023, with consistent high ROCE averaging 27–31% over recent years.

• Water sector revenue now exceeds £200 million annually, representing over 20% of group revenue, with further growth expected as AMP8 spend nearly doubles to £96–103 billion.

• Confident in sustaining progressive financial growth, supported by recent half-year results and significant growth opportunities in core markets.

Rail sector developments

• Largest provider of multi-disciplinary maintenance and renewal engineering services to Network Rail, with national coverage and major framework positions across all five devolved regions.

• Rail segment achieved 100% growth over two control periods, now the largest supplier of asset renewals and maintenance to Network Rail, with over £400 million in annual revenue.

• Addressable market for CP7 (2024–2029) is £31.9bn, a 9% increase over CP6, with a total commitment of £45.4bn.

• Rail innovation includes bespoke plant machinery, such as the QTS Mega Chipper and Soot Scabler, improving efficiency and safety.

• Collaboration through ARQ enables delivery of electrification projects supporting decarbonisation, with a secured £240m framework for Wales & Western CP7.