Renew Holdings, the engineering services and infrastructure which includes a number of UK water companies amongst its clients, has posted  record financial results for the year ended 30 September 2014.

Group revenue and operating profit, were both up 64% to £464.5m (2013: £282.7m) and £16.4m (2013: £10.0m) respectively, while group operating margin was maintained at 3.5% (2013: 3.5%).  Earnings per share increased by 68% to 20.80p (2013: 12.38p).

The Engineering Services business has seen growth across all its markets of Energy, Environmental and Infrastructure with revenue up 65% to £382.5m (2013: £232.4m). Engineering Services accounts for 82% of Group revenue and 85% of operating profit, focuses on the key markets of energy , environmental and infrastructure.

The Group operates in the water infrastructure, flood alleviation, river and coastal defence and land remediation markets providing operational support and maintenance services.

 In the water sector, Renew said it is continuing  to develop its long standing relationships with its largest clients Northumbrian Water, Wessex Water and Welsh Water where it deliver works under the regulated AMP 5 programme. The firm operates on a number of frameworks for Northumbrian Water including the Major Waste Water, Clean Water, Maintenance and Trunk Mains Cleaning frameworks. Renew was also selected as one of two preferred partners to deliver the accelerated flood alleviation workstreams that have seen substantial investment in the period. The group also undertake planned and reactive maintenance, sewer lining and infrastructure upgrades under their Minor Works framework.

Renew has maintained 'Best Performing Contractor' status with both Wessex Water and Welsh Water in the period. Wessex Water frameworks include Workstream Partner and Minor Civils frameworks.

For Welsh Water it works on the Pressurised Pipelines framework, which has recently been extended for two years, and also the Major Civil Engineering Projects frameworks.  Hydro schemes for Welsh Water are among as a number of opportunities Renew is progressing in the renewable energy market.

Renew has also further developed its relationship with the Environment Agency with the award of the £10m MEICA framework for the Northern region. The exclusive framework covers over 600 flood control and water management sites throughout the region and will run for 4 years to March 2018.

The Board's strategy is to continue to grow its Engineering Services business, both organically and through selective acquisitions.  The Board's ambition is to grow Group revenue to over £500m delivering a Group operating margin of over 4.5% within the next three years.

Commenting on the results, R J Harrison OBE, Chairman said:

"I am pleased to announce another record set of preliminary results for the Group. Renew 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. Our record order book of £439m gives the Board confidence for the next financial year. The Board's growth strategy for its Engineering Services business is proven and continues to deliver shareholder value which is reflected in the 39% increase in dividend. The Board has set targets for Group revenue in excess of £500m and a Group operating margin of at least 4.5% within the next three years."