Renew Holdings

Renew focus their efforts in areas that are backed by committed programmes of investment. The average ticket size for contracts is quite small, as a result of this, overall group revenues are less lumpy, and the overall risk profile is lower, with any potential delays less impactful and a reduced reliance on any single contract for revenues. Renew have compounded revenues mid-single digits over the past 10 years, with growth derived approximately 50/50 from organic and acquisitions.

Revenues are highly visible and backed by quasi-government organisations. Renew have a strong balance sheet and employ prudent use of debt, which gives them sufficient firepower to carry out bolt-on M&A in their focus markets.

Renew operates at the centre of the UK’s critical infrastructure, with a business model directly aligned to the country’s transition to net zero, the resilience of essential systems, and the long-term health of national assets.

Renew contribute positively to the environment through their exposure to the renewable energy sector; the modernisation of various parts of the UK’s rail transportation network, including the electrification of lines; and provide a range of services in water and wastewater including water treatment, wastewater sewers, and flood alleviation projects.

Renew also provide some strong societal benefits including the safety of UK transport networks and the improvement of communication networks.  

Renew provides engineering services to the civil nuclear industry. However, the company’s work in this sector is predominately focused on decommissioning and waste retrieval, and the overall work accounts for less than 10% of revenue.

Social risks associated with Renew primarily relate to the health and safety of employees working on infrastructure networks such as rail, energy and highways. This work is inherently dangerous and improper management of these risks could result in loss time to injury, project delays, fines and penalties.

The major infrastructure networks the company works on can be associated with high levels of environment and biodiversity disruption. Failure to comply with environmental regulations may result in fines and remediation costs. While the company has established a target to be Net Zero by 2040, it publishes little information on its environmental impact, and therefore remains an opportunity for engagement.