Final Results

Renew Holdings PLC
27 November 2007


Renew Holdings plc
('Renew' or the 'Group')

Final results for the year ended 30 September 2007

Renew, the specialist construction services Group, today announces an excellent
set of results with profit before tax up 55%, strong growth in cash flow and a
50% dividend increase.

Financial Highlights

                                                     2007                 2006
Turnover (ongoing operations)                     £347.8m              £341.7m               +2%
Profit before interest                              £5.0m                £3.5m              +44%
Profit before tax                                   £7.2m                £4.6m              +55%
Earnings per share                                  11.9p                10.0p              +19%
Dividend per share (full year)                       1.8p                 1.2p              +50%
Net cash balance                                   £24.4m               £19.4m              +26%

Operational Highlights

•   Strong performance across the Group
     o    Specialist Engineering profits up 20%
     o    Specialist Building profits up 42%

•   Excellent order book growth, up 21% to £252m
     o    Repeat orders up to 72%
     o    Negotiated, framework and two stage tendered work up to 68%
     o    Strong order intake since the year end

•   Acquisition of Seymour adding water sector to Specialist Engineering
     o    Northumbrian Water framework extended to 2011

•   New performance targets in place for 2010
     o    Turnover of at least £500m
     o    Specialist Engineering to represent a third of Group turnover
     o        Operating profit margin of 2.5%



Roy Harrison, Chairman, commented:

'The Group is now in a position of strength and we have exceeded all of our
performance targets for the year.  We continue to grow cash backed profits in
our robust markets. There is substantial work being done in pursuing further
strategic acquisitions. The Board is confident that the excellent progress made
during the year will continue. '

27 November 2007

Enquiries:

Renew Holdings plc                                   Tel: (On 27 November) 020 7457 2020
Brian May, Chief Executive                           Tel: (Thereafter) 0113 281 4200
John Samuel, Finance Director

College Hill                                         Tel: [phone]
Matthew Gregorowski


A presentation for analysts is taking place at 08.30 this morning at the offices
of College Hill, The Registry, Royal Mint Court, EC3N 4QN.

The report and accounts will be posted to shareholders in due course and copies
of this announcement are available upon request from the Company Secretary, Yew
Trees, Main Street North, Aberford LS25 3AA or via the company's website:
www.renewholdings.co.uk




CHAIRMAN'S STATEMENT

Introduction

I am pleased to report a strong set of financial results and that the Group has
made further excellent progress in line with its strategic objectives. In
Specialist Engineering we have continued to grow revenue, further enhanced by
the acquisition of Seymour, and have maintained our strong margins.  In
Specialist Building we have seen excellent growth in operating margins at steady
levels of revenue.

We are experiencing buoyant demand for the Group's specialist services in our
chosen market sectors, with the Group order book up 21% in the period.  The
order book also reflects a higher quality of work founded on strong levels of
repeat business from key clients and a further increase in the proportion of
work won within our specialist market sectors, which remain robust.

We continue to be recognised for the high quality and standard of work we are
consistently delivering to our customers and have received awards and
commendations for a number of our businesses, specifically in the areas of
environmental, design and innovation. Particularly pleasing is the excellent
progress we are making in Health & Safety, which continues to be a key area of
focus across the Group, reflected by a significant reduction in our Accident
Incidence Rate and recognised by a number of RoSPA awards.

Results and Dividend

Group turnover from ongoing operations for the year ended 30 September 2007 was
£347.8m (2006: £341.7m) and profit before tax was £7.2m (2006: £4.6m). Earnings
per share were 11.85p (2006: 10.00p). The Group's net cash balance at 30
September was £24.4m (2006: £19.4m) after paying for the £5.9m acquisition of
Seymour outlined below.  Net assets have increased to £10.1m from £5.3m.

The Board is proposing a final dividend of 1.2p per share, which will be paid on
 25 February 2008 to shareholders on the register as at 18 January 2008.  This
will result in a dividend of 1.8p per share for the full year (2006: 1.2p), a
50% increase, reflecting the Group's progressive dividend policy and the Board's
confidence in the Group's future prospects.

Growth Strategy

On 26 July 2007, the Group announced another acquisition in the form of Seymour
(Civil Engineering Contractors) Limited ('Seymour'), the water engineering
services provider, for a net cash consideration of £5.9m, expanding the Group's
Specialist Engineering activities into the water sector.  The integration of
Seymour is progressing well and the business is trading in line with our
expectations.

As Brian May outlines in more detail in his Chief Executive's review, we
continue to seek organic growth in our current specialist areas of activity,
whilst pursuing further strategic acquisitions in Specialist Engineering.

Management and Head Office

On 1 October 2006, John Bishop FCA joined the Board as non-executive director,
and on 31 October 2006, Arnold Wagner OBE stepped down from the Board as a
non-executive director.

During the year the Group relocated its head office to Aberford, near Leeds, and
streamlined its head office function.  Certain key appointments were also made,
including that of our Group Lawyer and Company Secretary, Ben Feather, who
joined Renew from HBOS after spending several years with Addleshaw Goddard in
Leeds.

Auditors

We have been reviewing our engagements with a number of the professional
advisors to the Group and, following a competitive tender process, in July 2007
the Board appointed KPMG Audit Plc as auditors in succession to RSM Robson
Rhodes LLP.

Outlook

The Group is now in a position of strength.  All of the performance targets set
at the beginning of the year have been exceeded.  We continue to grow cash
backed profits in key areas of the market where we see further opportunities for
organic growth and there is substantial work being done in pursuing further
strategic acquisitions. The Board is confident that the excellent progress made
during the year will continue.

Roy Harrison, Chairman
27 November 2007



CHIEF EXECUTIVE'S REVIEW

Overview

Another year of strong performance has been delivered across all of our
business, with profit before tax up 55%. This profit growth has been matched by
cash, which remains a primary objective, and we have achieved our target of
delivering a 2% Group profit before tax a year earlier than anticipated.  The
Group strategy which has been progressively implemented over the last two years
is now firmly established, both operationally and culturally, and its benefits
are reflected in these very positive results.

All of our specialist market sectors continue to demonstrate robust
fundamentals.  During the year we grew our Specialist Engineering activities
organically by over 20%, whilst expanding into new markets through the
acquisition of Seymour, a specialist contractor in the water sector. This was
achieved whilst maintaining target margins and, following the acquisition,
Specialist Engineering is now expected to account for more than 20% of Group
turnover.

In Specialist Building we maintained turnover at a similar level to last year
while increasing operating profits by 42%, with margins up to 1.4% from 1.0%.
This is an excellent achievement and demonstrates the significant improvement in
risk management as we progress towards our target of 2% operating margins in
Specialist Building within the next two years.

Group operating margins increased by 40% during the year and, as a result, we
have set a new objective for the Group of achieving an operating profit margin
of at least 2.5% by 2010.

The Group order book has grown by more than 21% during the period and the order
intake since the end of the financial year has been very strong.  The secured
forward order book at 30 September 2007 stood at £252m, compared to £209m a year
ago.  Our selective approach to winning new contracts has meant the proportion
of new orders that fall within our specialist areas of activity has increased to
nearly 80%.  The level of contracts secured from repeat customers has also
increased to 72%. Our level of negotiated, framework and two stage tendered work
reached 68%. This gives us greater earnings visibility and further reduces risk,
both of which remain key objectives going forward.

REVIEW OF OPERATIONS

Specialist Engineering

I am delighted that the quality of our Specialist Engineering work is being
recognised both by our customers and third parties. VHE was awarded the
Specialists in Construction Award from Construction News and was runner up in
Brownfield Briefing's Remediation Innovation Awards.  It was also awarded the
RoSPA Gold Medal in May in recognition of five consecutive years of Gold Awards.
Shepley Engineers was awarded a second consecutive RoSPA President's Award for
an outstanding performance in Health & Safety at work over an eleven year
period. Seymour won two CECA training awards and was runner up for North East
CECA Project of the Year.

In Nuclear, the largest spend within the national civil nuclear legacy programme
is at Sellafield in Cumbria, where Shepley Engineers have worked continuously
for more than 25 years.  Shepley Engineers is the largest mechanical and
electrical contractor at Sellafield with a workforce in excess of 400 people.
Overall activity is well balanced between operational asset support and the
decommissioning and demolition of redundant facilities.  During the year Shepley
Engineers was awarded four long-term frameworks at Sellafield, the most
important being the major Multi Disciplinary Site Wide Framework, where the
company is one of three Tier 2 contractors alongside Amec and Hertel. This
framework is worth in excess of £25m over the next two years and includes an
option for a further two year extension.

In Land Remediation, VHE was reappointed as a term contractor by National Grid
Property Limited to continue remediation works on sites across the UK. This
three year framework contract is worth £10m per annum with an option to extend
it for a further two years.  Major contracts with other clients include the
remediation of former coal-fired power stations in Rugeley in Staffordshire and
Stella South near Gateshead.  Both entailed substantial land reclamation to
create clean development platforms for future housing development.

In Water, the Group acquired Seymour, a leading civil engineering business in
the North East of England, in July 2007. Seymour carries out water
infrastructure development and maintenance, flood alleviation and coastal
protection and urban renewal works for the public and private sectors. Seymour
has a long-standing relationship with Northumbrian Water and has recently had
its framework agreement extended until 2011.  Recent contracts also include a
£6m coastal protection scheme completed over two phases at Seaton Carew, and a
contract to install a new raw water main at Teesside Power Station.  The
integration of Seymour is progressing well and we are confident of growing the
business as part of the enlarged Group.

Specialist Building

Our Specialist Building businesses have experienced a strong increase in repeat
business as well as a number of industry commendations including RIBA, RISC and
BREEAM awards for architectural design, innovation and environmental
construction.

In Social Housing, Allenbuild now has six framework agreements with major
housing associations in the South East. We have recently been awarded a £15m
contract by Metropolitan Housing Association to build 106 new apartments and
retail space in Hackney. We have a pipeline of projects with Logic Homes in
excess of £60m and more than £40m with other framework partners. Allenbuild is
actively incorporating Modern Methods of Construction into its social housing
workload and is committed to achieving zero defects on all projects.

In Retail, Britannia Construction secured a number of new clients and
developments, including its appointment as a framework contractor to Marks &
Spencer, and continued to strengthen its relationships with existing customers
such as Tesco. A £6m redevelopment of Fareham Town Shopping Centre for Dominion
Corporate Trustees was started in the summer for a new 32,000 sq ft extension to
the existing shopping mall. Allenbuild also completed the £6m North Walk
Development at the Crystal Peaks Shopping Centre in Sheffield for Hermes, and
secured repeat business with Dransfield Properties for the £5m Jasper Square
development in Tunstall. This sector is experiencing a very strong level of
enquiries.

In Restoration and Refurbishment, a notable scheme undertaken by the Group was
the £13m restoration of the historic iron fabric at St Pancras Station, London.
We continue to see strong demand from the high quality residential sector in
London with a number of prestigious high quality projects underway. We also
commenced a new framework with Grosvenor, which involves the refurbishment of
several properties in Mayfair and Belgravia. The £8m refurbishment of Walmsley
House into 170 student units for Investream was completed, the second project
for this client, illustrating the high level of repeat business we conduct in
this specialist sector.

In Science and Education, Walter Lilly enjoyed a successful year with projects
for University College, London and the Burlington Danes laboratory fit out as
part of the Imperial College framework, as well as securing the £20m Queen Mary
Innovation Centre construction project for the Queen Mary University, London.
Work also continued for longstanding client GlaxoSmithKline's research and
development arm with two laboratory refurbishment projects. Allenbuild commenced
the construction of the £17m Rossington All Saints Secondary School and Sports
Village for the Diocese of Sheffield.  It has also completed the main phase of
the British Library's £13m Additional Storage Programme, the world's first
large-scale automated document retrieval complex to use oxygen depletion
technology as a fire resistance strategy.

Property and other activities

The on time and on budget completion of a major development project for Wichford
PLC valued at over £15m demonstrated how the Group's various capabilities in
development, land remediation and construction could be brought together
successfully and profitably. We continue to look for other suitable development
opportunities and have recently started construction of a specialist
manufacturing building in Cumbria for an American client. We also continue to
realise surplus land both in the UK and USA and I am confident of further land
realisations in 2007/08.

People

We continue to attach great importance to Health & Safety practices across the
Group.  I am delighted to report that during the year we have decreased the
Accident Incidence Rate by 41%, which given our annual target of a 10% reduction
is a major achievement.

The improvement in the Group's performance is a testament to the hard work and
dedication of all of our employees, for which the Board is extremely grateful.

Strategic Update

The benefits of our strategic focus and improved management practices are
becoming increasingly evident. Our specialist activities are also well
positioned in serving robust market sectors with good potential for growth. This
provides an excellent platform for the future and we will continue to expand our
presence in our existing areas of activity both organically and, in Specialist
Engineering, via further strategic acquisitions. The Group's strong financial
position and cash generation provides excellent flexibility for funding any
future acquisitions.

Our goal is, within the next three years, for the Group's Specialist Engineering
activities to increase to at least a third of Group turnover. We are targeting
Group turnover of at least £500m by 2010, however we will not lose sight of our
primary objective of delivering increased cash backed profits from progressive
operating margin improvement, with a corresponding target of a Group operating
profit margin of 2.5% by the same date.

Brian May, Chief Executive
27 November 2007




GROUP PROFIT & LOSS ACCOUNT
For the year ended 30 September 2007
                                                                 Note         Total        Total
                                                                               2007         2006
                                                                               £000         £000

Turnover: Group & share of joint ventures                                   349,129      365,266
Less share of joint ventures' turnover                                        (980)      (2,823)
Continuing operations                                                       347,770      341,698
Discontinued operations                                                         379       20,745
Group turnover                                                      1       348,149      362,443
Cost of sales                                                             (311,486)    (328,393)
Gross profit                                                                 36,663       34,050
Administrative expenses                                                    (31,646)     (30,577)
Profit on ordinary activities before interest                       1         5,017        3,473
Interest receivable                                                           2,199        1,561
Interest payable                                                              (768)      (1,437)
Other finance income - FRS17 pension                                            745        1,042
Profit on ordinary activities before taxation                                 7,193        4,639
Taxation (charge)/credit on ordinary activities                     2          (95)        1,349
Profit for the financial year                                                 7,098        5,988
Basic earnings per Ordinary share                                   4        11.85p       10.00p
Diluted earnings per Ordinary share                                 4        11.63p        9.95p


GROUP STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES                            Total        Total
For the year ended 30 September 2007                                           2007         2006
                                                                               £000         £000

Profit for the financial year                                                 7,098        5,988
Exchange movement in reserves                                                 (150)        (119)
Movements in defined benefit pension scheme                                 (1,804)      (6,175)
Movement on deferred tax relating to the defined benefit                        427        1,186
pension scheme
Total recognised gains and losses for the year                                5,571          880



GROUP BALANCE SHEET
At 30 September 2007


                                                                               2007         2006
                                                                               £000         £000
Fixed assets
Intangible assets: Goodwill                                                   8,741        4,527
Tangible assets                                                               5,188        3,819

Investments in joint ventures:
Loans to joint ventures                                                         751          561
Share of gross assets                                                         3,623        4,429
Share of gross liabilities                                                  (1,321)      (1,722)
                                                                              3,053        3,268
                                                                             16,982       11,614
Current assets
Stocks and work in progress                                                   6,391       18,673
Debtors: due after more than one year                                         3,902        4,346
Debtors: due within one year                                                 85,118       77,093
Cash at bank and in hand                                                     24,565       19,735
                                                                            119,976      119,847
Creditors: amounts falling due in less than one                           (122,352)    (121,555)
year
Net current liabilities                                                     (2,376)      (1,708)
Total assets less current liabilities                                        14,606        9,906
Creditors: amounts falling due after more than one
year
Other creditors                                                             (1,899)      (1,821)
Net assets excluding pension liability                                       12,707        8,085
Pension liability                                                           (2,562)      (2,769)
Net assets                                                                   10,145        5,316

Capital and reserves
Share capital                                                                 5,990        5,990
Share premium account                                                         5,893        5,893
Capital redemption reserve                                                    3,896        3,896
Revaluation reserve                                                              73           73
Share based payments reserve                                                     97            -
Profit and loss account                                                     (5,804)     (10,536)
Equity shareholders' funds                                                   10,145        5,316





GROUP CASH FLOW STATEMENT
For the year ended 30 September 2007

                                                                           Note        Total      Total
                                                                                        2007       2006
                                                                                        £000       £000

Net cash inflow from operating activities                                     5       21,878     10,661

Returns on investments and servicing of finance
Interest received                                                                      2,199       1561
Interest paid                                                                          (768)    (1,437)
                                                                                       1,431        124
Taxation
Net corporation tax paid                                                               (107)       (36)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                            (1,060)    (1,291)
Proceeds on sale of tangible fixed assets                                                308        393
Loans advanced to joint ventures                                                       (231)      (149)
                                                                                       (983)    (1,047)

Acquisitions and disposals
Acquisition of a subsidiary                                                          (6,821)      (664)
Cash obtained on acquisition of subsidiaries and businesses                              889         65
                                                                                     (5,932)      (599)

Equity dividends paid to shareholders                                                  (839)      (360)
                                                                    3

Cash inflow before financing                                                          15,448      8,743

Financing
Movement in short-term borrowings                                                          -    (3,600)
Repayment of mortgage                                                                      -    (8,363)
(Repayment of)/additional development loans                                          (9,795)      9,795
Finance lease payments                                                                 (543)      (686)
                                                                                    (10,338)    (2,854)
Increase in cash during the year                                                       5,110      5,889

Reconciliation of net cash flow to movement in net funds
Increase in cash during the year                                                       5,110      5,889
Movement in borrowings                                                                10,053      2,556
Changes in net funds arising from cash flows                                          15,163      8,445

Other non-cash movements                                                               (280)        256
Movement in net funds during the year                                                 14,883      8,701

Opening net funds                                                                      8,970        269
Closing net funds                                                                     23,853      8,970





NOTES TO THE ACCOUNTS

1) Segmental analysis

                                                                                          2007        2006
                                                                                          £000        £000
Turnover is analysed as follows:

Building                                                                               265,289     271,888
Engineering                                                                             68,777      54,553
Inter divisional turnover                                                              (3,265)     (8,999)
Property and central activities                                                         17,949      27,079
Discontinued operations                                                                    379      20,745
Group and share of joint ventures' turnover                                            349,129     365,266
Less: Share of joint ventures' turnover                                                  (980)     (2,823)
Group turnover                                                                         348,149     362,443

Analysed as to:
Continuing operations                                                                  347,770     341,698
Discontinued operations                                                                    379      20,745
Group turnover                                                                         348,149     362,443


Analysis of profit on ordinary activities:
Building                                                                                 3,700       2,603
Engineering                                                                              3,374       2,810
Property and central activities                                                        (2,057)     (1,940)
Discontinued operations                                                                      -           -
Profit on ordinary activities before interest:                                           5,017       3,473
Net financing income                                                                     2,176       1,166
Profit on ordinary activities before taxation:                                           7,193       4,639





2) Taxation (charge)/credit on ordinary activities

Analysis of (charge)/credit in year                                                       2007        2006
                                                                                          £000        £000
Current tax:
UK corporation tax on profits of the year                                                (291)
                                                                                               -
Adjustments in respect of previous periods                                                   -        (74)
                                                                                         (291)        (74)
Foreign tax                                                                              (107)         (2)
Total current tax                                                                        (398)        (76)
Deferred tax - pensions                                                                  (616)           -
Deferred tax - other                                                                       919       1,425
Total deferred tax                                                                         303       1,425
Taxation (charge)/credit on profit on ordinary activities                                 (95)       1,349







3) Dividends
                                                                                            2007            2006
                                                                                     Pence/share     Pence/share

Interim (related to the year ended 30 September 2007)                                       0.60            0.40
Final (related to the year ended 30 September 2006)                                         0.80            0.20
Total dividend paid                                                                         1.40            0.60

                                                                                            £000            £000
Interim (related to the year ended 30 September 2007)                                        359             240
Final (related to the year ended 30 September 2006)                                          480             120
Total dividend paid                                                                          839             360



4) Earnings per Ordinary share
                                                        2007                                  2006
                                                    Weighted                              Weighted
FRS 22 basis                                         average                               average
                                                      number                                number
                                      Earnings     of shares         EPS     Earnings    of shares         EPS
                                          £000           000       Pence         £000          000       Pence


Basic earnings per share                 7,098        59,899       11.85        5,988       59,899       10.00
Dilutive effect of share options                       1,154      (0.22)            -          254      (0.05)
Diluted earnings per share               7,098        61,053       11.63        5,988       60,153        9.95






5) Cash flow

                                                                                          2007              2006
                                                                                          £000              £000

Operating profit                                                                         5,017             3,473
Amortisation of goodwill                                                                   356               306
Depreciation                                                                             1,326             1,523
Profit on sale of fixed assets                                                            (85)                 -
Decrease/(increase) in stocks and work in progress                                      11,910           (9,551)
Increase in operating debtors and prepayments                                          (3,067)             (866)
Decrease in current asset investments                                                        -            16,643
Increase/(decrease) in creditors and accruals                                            7,573           (1,152)
Net movement on pension deficit included within operating profit                            79                68
Cash contribution to defined benefit scheme                                            (1,534)           (1,246)
Charge in respect of share options                                                          97                 -
Realisation of joint venture assets                                                        206             1,463

Net cash inflow from operating activities                                               21,878            10,661


6) Preliminary announcement

The financial information set out above does not constitute the Company's
consolidated statutory accounts for the years ended 30 September 2007 or 2006
but is derived from those accounts.  Statutory accounts for the year ended 30
September 2006 have been delivered to the Registrar of Companies, and those for
the year ended 30 September 2007 will be delivered following the Company's
Annual General Meeting.  The auditors have reported on those accounts; their
reports were unqualified and did not contain statements under section 237(2) or
(3) of the Companies Act 1985.






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