Renew Holdings (RNWH) H2 2024 earnings summary

Executive summary

• Delivered record results for the year ended September 2024, with strong organic revenue growth of 17% and improved operating margins.

• Transitioned to a pure-play engineering services group after disposing of the last building brand, with workforce increasing by 7% to 5,174 employees.

• Expanded into new markets, notably onshore wind and electricity transmission/distribution, through strategic acquisitions including TIS, Route One, Excalon, and Full Circle.

• Maintained a disciplined compounding growth model focused on organic and acquisitive expansion.

Financial highlights

• Revenue reached £1,057m (GBP 1.06 billion), up 19% year-over-year, with 17% organic growth.

• Operating profit rose 14% to £70.9m, with an operating margin of 6.7%.

• EPS increased 6% to 65.9p; full-year dividend up 6% to 19p.

• Free cash flow conversion at 63%-78%, impacted by investment and higher tax.

• Engineering Services order book grew to £889m, supporting future growth.

Outlook and guidance

• Margins expected to range between 6.5% and 7.5% following recent portfolio changes.

• Entering 2025 as a pure-play engineering services provider, with a strong order book and robust M&A pipeline.

• End markets supported by long-term, non-discretionary renewal and maintenance demand.

• Anticipates continued expansion into new markets, especially onshore wind and transmission/distribution.

• New growth opportunities in renewables and electricity distribution and transmission.