Acquisition of Lewis Civil Engineering Limited
12 August 2013
Renew Holdings plc
("Renew" or the "Group")
Acquisition of Lewis Civil Engineering Limited
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, is pleased to announce the acquisition of the entire issued share capital of Lewis Civil Engineering Limited ("Lewis") for a cash consideration of £7.9 million. The consideration includes £0.6m in respect of two freehold properties used by Lewis. The acquisition has been funded from the Group's cash resources and overdraft facilities provided by HSBC Bank plc. Lewis had a net cash position of £0.6m at the point of acquisition.
Lewis, which is based near Cardiff, was founded in 1984 and specialises in the construction and maintenance of infrastructure and assets within the water industry. It is a well respected brand in its region and market with clients including Wessex Water and Dwr Cymru Welsh Water. It provides its services through framework agreements and employs approximately 175 highly skilled personnel.
In the year ended 31 July 2012, Lewis reported an operating profit of £1.0m on turnover of £20.4m. For the year ended 31 July 2013, Lewis is expected to record an increase in turnover of approximately 20% and to maintain its operating profit margin percentage. Lewis's financial performance is both cash generative and accretive to Renew's Engineering Services operating margin.
Lewis was 80% owned by Mrs J Lewis, who has resigned from the Board at completion of the transaction. David Boden, Managing Director of Lewis, who owned the remaining 20%, continues in that position following the acquisition, having entered into a new two year service contract, and will report to Renew's Engineering Services Director, Paul Scott.
Roy Harrison OBE, Chairman of Renew, commented: "Renew's presence in the Environmental market will be significantly strengthened by the acquisition of Lewis. This acquisition accords with the Group's clear strategy of growing its Engineering Services business in sustainable markets, where it can secure strong framework positions with major clients focusing on areas of non-discretionary spend."
Enquiries:
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Renew Holdings plc |
Tel: 0113 281 4200 |
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Brian May, Chief Executive |
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John Samuel, Group Finance Director |
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Numis Securities Limited |
Tel: 020 7260 1000 |
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Stuart Skinner (Nominated Adviser) |
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James Serjeant (Corporate Broker) |
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Walbrook PR |
Tel: 020 7933 8780 |
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Paul McManus (Media Relations) |
Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com |
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Paul Cornelius (Investor Relations) |
Mob: 07827 879 496 or paul.cornelius@walbrookir.com |
About Renew Holdings plc
Engineering Services, which now accounts for over 70% of Group revenue and 80% of operating profit, focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
Specialist Building focuses on the New Build Affordable Housing and High Quality Residential markets in the South of England.
For more information please visit the Renew Holdings plc website: www.renewholdings.com
This information is provided by RNS
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