Renew reveals 72% rise in interim profits

Renew, the AIM-listed contractor formerly named Montpellier, has reported a 72% rise in interim profit after a restructuring of the business.

Pre-tax profit rose to £3.1m for the six months to 31 March 2007, compared with £1.8m in its previous first half. Turnover rose 6% to £172.7m across the same period.

The results follow a restructuring of the company into two divisions, specialist building and specialist engineering, both of which reported strong results.

The results are the first since the restructuring, which occurred at the end of last year as part of the ongoing rebuilding after the £6.9m loss sustained by Montpellier in 2004.

The firm has recently been awarded its third framework contract at Sellafield, to provide M&E services and minor civil works across the site. The contract is worth an expected £25m over the next two years, with an option for a further two year extension thereafter.

Brian May, chief executive, said: “The progress the group is making is very satisfying. I remain confident of delivering further improvement in the second half of this year and in our prospects for the future.”

Renew changed its name from Montpellier at the end of 2005 after the firm brought in chief executive Brian May to help it recover from heavy losses. The company sold its social housing business, Bullock, to a management buyout in 2005.