A trading update from Renew Holdings this morning reveals trading to be ahead of expectations and the board full of confidence.
Renew’s financial year ended last week, on the 30th September. When its accounts are filed they will show double digit turnover growth to around £930m (2022: £816m) while adjusted operating profit will be above the £62m that City analysts had been expecting.
“Continued robust demand across our end markets combined with the company's ability to successfully navigate ongoing inflationary pressures has resulted in the board expecting the group to report revenue and operating profit for the year marginally ahead of market consensus reflecting Renew's resilient and differentiated business model,” the board said.
“The company's balance sheet continues to be strong with net cash, at 30th September 2023, anticipated to be ahead of market expectations.”
This good news in contrast to gloom elsewhere among companies more heavily involved in the HS2 project.
The Sunday Times reported at the weekend that Skanska UK was preparing a round of redundancies in anticipation of a reshaping of HS2 and on the back of delays to other major projects, such as the Lower Thames Crossing, where Skanska is preferred bidder for the £450m Kent approach roads contract. On HS2 Skanska is in joint venture with Costain and Strabag building the London tunnels between Old Oak Common and Euston – which have been deprioritised for the time being.
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