Renew Holdings plc Annual Report and Accounts 2010 
Delivering specialist 
engineering and 
construction services
We deliver specialist 
engineering and 
construction services 
through our branded 
businesses which 
operate in robust and 
sustainable markets
Corporate statement
_cover.indd   1 21/12/2010   08:45:14 Renew Holdings plc Annual Report and Accounts 2010 
Delivering specialist 
engineering and 
construction services
We deliver specialist 
engineering and 
construction services 
through our branded 
businesses which 
operate in robust and 
sustainable markets
Corporate statement
Turn over to find out more about our operations
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Renew comprises a range of businesses operating in selected markets, 
where regional knowledge and specialist expertise sets us apart. 
Our specialist markets 1347
Employees
10
Regional offices
Nuclear
Specialist Engineering within 
the nuclear sector is delivered 
through Shepley Engineers, a 
major mechanical, electrical 
and decommissioning contractor 
and its subsidiary businesses 
West Cumberland Engineering, 
PPS Electrical and Mothersill 
Engineering. Our integrated 
business model is unique in 
this sector and now provides 
a multidisciplined solution in line 
with the procurement strategies 
adopted by our key clients.
Rail
The Group has been active in the 
rail sector for more than 25 years. 
Subsidiary company, YJLi, has 
carried out construction and 
engineering works on every station 
and train depot on the London 
Underground network as well as 
many mainline rail stations and 
depots.
Social housing
Specialist Building in the social 
housing sector is primarily 
delivered through our Allenbuild 
business in the South East of 
England. Traditional, design and 
build and partnering on mainly 
new build projects in the public 
sector form a large portion of 
the work undertaken. 
High quality residential
Walter Lilly continues to lead in 
the restoration and refurbishment 
of high quality and prestigious 
residential properties in and 
around London and has particular 
expertise in the transformation of 
historic and listed buildings. 
Walter Lilly is experienced in the 
provision of substantial 
temporary works which proves 
invaluable for the complex nature 
and locations of a large number 
of their projects.
Science and education
A number of businesses in the 
Renew Group specialise in the 
science and education sectors 
delivering a range of projects 
nationwide. 2010 saw the award 
and commencement of the 
Kirklees College Waterfront 
Campus project in Huddersfield. 
The £45m project which is due for 
completion in July 2012 includes 
substantial engineering works. 
Retail
A number of businesses in the 
Group have extensive experience 
in the retail sector. Work has been 
undertaken on a number of mixed 
use developments and retail stores 
during the year.
Specialist Engineering Specialist Building
Land remediation 
Operating throughout the UK, the 
Group has had significant experience 
in brownfield development and 
contaminated land management 
since 1979. This expertise is 
principally delivered through VHE 
Construction, a civil engineering 
business with specialist land 
remediation skills. VHE utilises 
in-house designed and developed 
solutions which apply innovative 
and sustainable services such as 
specialist biophysical treatment, 
soil washing, solidification and 
stabilisation.
Water
Our activities in the water industry 
are principally supplied through 
Seymour Civil Engineers and its 
subsidiary C&A Pumps. Our 
businesses have extensive 
expertise in water infrastructure 
development and maintenance, 
flood alleviation, sea defences 
and land reclamation. Additionally 
we provide specialist services in 
mechanical and electrical 
installations, maintenance and 
pump sales and service. 
Read more on page 14 Read more on page 16 Read more on page 18 Read more on page 20 Read more on page 22 Read more on page 24 Read more on page 26 Read more on page 28
Find out more about our 
operations at
www.renewholdings.com
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Annual Report and Accounts 2010
01
www.renewholdings.com
Highlights
Highlights
In this report
01 Highlights
02 Our performance
04 Chairman’s statement
06 Chief Executive’s review
10 Financial review
12 Review of operations
30 Corporate social responsibility
34 Directors’ report
38 Directors’ remuneration report
41 Corporate governance
43  Statement of directors’  
responsibilities
44 Independent auditors’ report
45 Group income statement
46  Group statement of 
comprehensive income
46  Group statement of changes in equity
47 Group balance sheet
48 	 Group	cashflow 	 statement
49 Notes to the accounts
72 Company balance sheet
73 Notes to the company accounts
81 	 Directors,	officers 	and 	advisors
82 Shareholder information
83 Notice of annual general meeting
84  Notes to the notice of annual 
general meeting
  Specialist Engineering now accounts for 
44% of Group revenue 
  Group’s order book at 30 September 
increased by 50% to £304m (2009: £202m)
  87% of orders received were in 
specialist sectors
  63% of Specialist Engineering forward 
orders are in regulated sectors 
  70% of 2011 planned revenue secured 
  Cash increased by 11% to £16.2m 
(2009: £14.6m)
Revenue:
£290.4m
(2009: £316.6m)
Profit before income tax*:
£4.6m
(2009: £5.5m)
*Prior to exceptional items and amortisation charges
Full year dividend:
3.0p
(2009: 3.0p)
Net cash balance:
£16.2m
(2009: £14.6m)
Read 	 our 	 financial 	 results	 in 	 full 	 on page 45
Order book:
£304m
(2009: £202m)
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02
Our performance
A resilient performance
Renew	enters	the	 new 	 financial 	year	 with	a	strong,	contracted	order 	book,	a	
debt free balance sheet and substantial cash resources providing a resilient 
platform from which to grow in 2011 and beyond. 
Specialist Engineering A position of strength
Of the Group’s £304m contracted order 
book, 87% is in our specialist sectors. 
07
08
09
10
£68.8
£114.8
£127.4
£93.3
Revenue:
£127.4m
Specialist Building
06
£54.6
Orders in projects with 
funding from private sources:
75%
Balance of Group revenue
 Specialist Engineering    Specialist Building
2010
2006
44%
56%
85%
15%
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Our performance
Specialist Engineering
Specialist Building
 Read more in the specialist engineering review on page 14
 Read more in the specialist building review on page 22
Percentage of 
Group revenue:
44%
(2009: 36%)
Operating profit*:
£4.2m
(2009: £4.0m) 
* Prior to exceptional items and 
amortisation charges
High quality residential 
2011 revenue secured:
75%
Social housing 2011 and 
2012 revenue secured:
100%
What we’ve achieved
 Specialist Engineering revenue increased by 11%
 44% of Group revenue in Specialist Engineering
  Specialist Engineering margins within target 
range at 3.3%
  Specialist Engineering 69% of Group 
construction operating profits
  63% of Specialist Engineering orders in 
regulated sectors
What’s next
  Engineering to be at least 50% of Group 
revenue in 2012
  Expand Specialist Engineering activities both 
organically and by acquisition
  Complete a suitable, complementary 
acquisition of a specialist engineering business 
operating in a stable market in regulated industries
  Develop current position in long term sustainable 
sectors with regulatory drivers and non 
discretionary spend characteristics 
What we’ve achieved
 Specialist Building margins stabilised at 1.1%
  Operating profit prior to exceptional items and 
amortisation charges of £1.8m
  Strong forward order book
  £94m of orders received in the year for our 
social housing business
  Business appropriately sized for current 
market conditions
What’s next
  Limited impact of Comprehensive Spending 
Review with 75% of orders with private funding
  Continue to selectively access opportunities in 
targeted markets where we have knowledge 
and experience both of our client and of 
similar projects
 Maintain profitability of at least 1%
  Work towards target of 2% profitability as and 
when markets improve
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Annual Report and Accounts 2010
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04
Chairman’s statement
Introduction
In what has been a further period of 
economic challenges, I am pleased 
to report satisfactory operating results 
for the year in line with expectations.
It is our well established strategy to move 
the balance of Group revenue to Specialist 
Engineering, which now accounts for 44% 
compared with 15% four years ago. This 
strategy remains valid with both revenue 
and 	profit 	from 	Specialist 	Engineering	 having	
increased annually over the past four years. 
Results
Group revenue for the year ended 
30 September 2010 was £290.4m 
(2009: 	£316.6m).	 Profit 	before	income	
tax for the year prior to exceptional items 
and amortisation charges was £4.6m 
(2009: 	£5.5m).	Profit 	after 	tax, 	 exceptional 	
items and amortisation charges was 
£2.7m (2009: £0.4m).
The Group remains debt free and at 
30 September 2010 the Group’s net 
cash position was £16.2m (2009: £14.6m). 
Specialist Engineering revenue increased 
by 11% to £127.4m (2009: £114.8m) and 
operating	profit 	prior	 to	exceptional	items 	
and amortisation charges increased by 4% 
to £4.2m (2009: £4.0m). 
In Specialist Building revenue reduced in 
the year to £163.1m (2009: £202.4m) with 
operating	profit 	prior	 to	exceptional	items 	
and amortisation charges of £1.8m 
(2009: £2.5m). 
The Group’s contracted order book at 
30 September 2010 increased by 50% to 
£304m (2009: £202m) and includes 70% 
of revenue secured for 2011 (2009: 59%). 
87% of orders received were in our specialist 
sectors with 63% of engineering orders in 
regulated sectors. 
Office of Fair Trading Investigation 
The result of our appeal remains outstanding 
and during the year an exceptional charge 
of £0.3m has been incurred in respect of 
legal costs.
Dividend
The 	Board	 is	proposing	 to 	 maintain	the	 final 	
dividend at 2.0p per share. This will provide 
an annual dividend of 3.0p (2009: 3.0p). 
The dividend will be paid on 24 February 
2011 to shareholders on the register as 
at 28 January 2011. 
Strategy
Our strategy remains to focus on two distinct 
business streams, Specialist Engineering 
and Specialist Building, progressively moving 
the balance of Group revenue towards 
Specialist Engineering. Our aim is to increase 
revenue in Specialist Engineering both 
organically and by acquisition, whilst 
maintaining operating margins of 3% to 4%. 
In Specialist Building we aim to maintain 
profitability of at least 1% at the operating 
level with a longer term target of 2% as and 
when markets improve.
“It is our well established strategy to move 
the balance of Group revenue to Specialist 
Engineering, which now accounts for 44% 
compared with 15% four years ago. This 
strategy remains valid with both revenue 
and profit from Specialist Engineering 
having increased annually over the past 
four years.”
R J Harrison OBE Chairman
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Annual Report and Accounts 2010
05
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Chairman’s statement
In Specialist Engineering, the Group seeks 
to exploit its specialist skills in a range of 
industries which offer sustainable earnings 
opportunities and have high barriers to entry. 
In Specialist Building, our focus will remain 
on selectively accessing opportunities in 
targeted markets where we have knowledge 
and experience both of our client and of 
similar projects. 
These operational strategies combine 
to reduce risk and to enhance quality of 
earnings. Our medium term objective is 
to develop a Specialist Engineering and 
Construction Services Group with overall 
operating 	 profits	 of 	 over 	 2% 	 and 	 with	
Specialist Engineering providing at least 
50% of Group revenue by 2012.
Outlook
The Board’s analysis of the impact of the 
Comprehensive Spending Review on our 
activities is that it will be limited. After taking 
this 	 into 	 account, 	 the 	 Board 	 remains 	 confident 	
that the Group will continue to deliver a resilient 
performance in the medium term and is 
positioned to take advantage of opportunities 
when economic conditions improve.
Renew is well positioned with a debt free 
balance sheet, substantial cash resources 
and 	a	strong 	confirmed 	order	 book.	 As	a	
result, the Board expects that the Group will 
return to growth in both revenue and 
operating	 profits 	 in	2011.	
R J Harrison OBE 
Chairman
23 November 2010
To develop a Specialist Engineering and 
Construction services business through:
Our strategy
Annual dividend:
3.0p
(2009: 3.0p)
Expanding Specialist 
Engineering both organically 
and by acquisition whilst 
maintaining operating 
margins in the target 
range of 3% to 4% 
(2010: 3.3%).
Selectively accessing 
Specialist Building 
opportunities whilst 
maintaining profitability 
of at least 1% with a target 
of 2% as and when markets 
improve (2010: 1.1%).
Delivering Group margins 
in excess of 2% with 
Specialist Engineering 
being 50% of Group 
revenue by 2012.
Revenue secured for 2011:
70%
Increase in net cash:
11%
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Annual Report and Accounts 2010
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06
Chief Executive’s review
Operational strategy
During 2010, we have continued to move 
the balance of the Group’s activities towards 
its Specialist Engineering business stream, 
where revenue increased by 11% and now 
accounts for 44% of Group revenue, compared 
to 36% in 2009. Margins remained within our 
target range at 3.3%. 
The Specialist Engineering markets in which 
the Group operates offer higher margins than 
Specialist Building and engage our skilled 
workforce in industries which are mainly 
governed by regulation. Consequently, our 
Specialist Engineering activities have greater 
security of funding and more predictable 
work streams. 
It remains the Group’s strategy to expand 
Specialist Engineering activities both organically 
and by acquisition and we continue to look 
for suitable, complementary acquisitions. 
The focus of our acquisition strategy is to 
identify businesses with specialist skills 
operating in stable markets in regulated 
industries such as environmental, energy 
and transport. We are highly selective in our 
evaluation of acquisitions and look for business 
drivers which are not dependent on large 
capital programmes but have sustainable 
qualities incorporating non-discretionary 
and maintenance spend characteristics. 
In Specialist Building, the Group targets markets 
appropriate to our skills and experience with 
contract selectivity part of a rigorous risk 
management approach. This business 
stream has been impacted by the economic 
recession over the last two years and during 
2010 revenue reduced by 19%. Operating 
margins stabilised at 1.1% and the forward 
order book is strong with 75% of orders in 
projects with funding from private sources. 
Comprehensive spending review
Although it may be several months before 
the detail of the Comprehensive Spending 
Review 	 is	finalised, 	 we	expect	 its	impact 	
on the activities of the Group to be limited. 
In our Specialist Engineering business, 
the	 Nuclear	 budget 	 has	been	 reconfirmed. 	
In Rail, where we operate primarily in the 
Greater London area, the Government 
remains committed to the maintenance and 
development of the rail and underground 
networks. Our Water and Land Remediation 
activities are not affected. 
In our Specialist Building business, the 
Government has retained its ambition to 
construct 150,000 new build social housing 
units per annum. The lifting of the rent cap 
is 	 expected 	 to 	 liberate 	 the 	 financial	 constraints	
under which several of the Housing Associations 
operate and we expect that the demand for 
new build social housing in the South East, 
which is the only geographic area in which 
we carry out this activity, will continue. 
Our order book in this business is also 
particularly strong. 
The other markets which we target in 
Specialist Building are largely privately 
financed other than some school 
programmes within Science and Education. 
Our exposure to the public sector in this area 
is already limited and we do not foresee a 
material impact on our operations.
Specialist Engineering
Nuclear
Shepley Engineers continues to be active at 
five 	nuclear 	facilities 	 and	remains 	the	largest	
mechanical and electrical contractor at 
Sellafield. 	Shepley 	 operates 	 in 	the 	fields 	of	
both asset support and decommissioning, 
concentrating on high hazard programmes 
carrying regulated mandates and therefore 
sustainable funding. 
During the year, work continued on the 
Multi Discipline Site Wide framework. 
Two new frameworks for decommissioning 
and	bundling 	spares	at 	 Sellafield 	were	also	
awarded. The integrated supply model offered 
by the Group is becoming increasingly 
“The Specialist Engineering markets in 
which the Group operates offer higher 
margins than Specialist Building and 
engage our skilled workforce in industries 
which are mainly governed by regulation. 
Consequently, our Specialist Engineering 
activities have greater security of funding 
and more predictable work streams.” 
Brian May Chief Executive
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Annual Report and Accounts 2010
07
www.renewholdings.com
year	Seymour 	was	awarded	 a	fifth 	 clean 	
water	framework	and	 is	 in	the	final 	stages	 of	
the process to be reappointed to the AMP5 
framework. Flood alleviation and combined 
sewer	overflows 	continue	to	 feature	strongly	
with £14m of orders received in the year from 
NWL. In addition the Group has framework 
agreements with Scottish Water and Severn 
Trent. The Group has seen a 6% increase on 
forward orders in the Water sector.
Land remediation
Remediation continues to provide opportunities 
and during the year the £6m project to 
remediate the site of the Commonwealth 
Games Athletes Village in Glasgow, one of 
the largest remediation projects in Scotland, 
was completed. The £15m Cudworth Bypass 
contract, 	 the 	 fifth 	 contract	for 	Barnsley	MB C, 	
was also completed ahead of programme 
and under budget.
During the year the framework with National 
Grid was extended. This offers the opportunity 
for	growth 	ahead	 of	the	ending	 of	Landfill 	T ax	
Exemptions in March 2012. Recent awards 
include the Partington Hub and Cluster 
project for the remediation of four former 
gasworks sites. We are also preferred bidder 
on the St Helier Gasworks project in Jersey, 
due to commence in December.
important, demonstrated by an order for 
flask 	maintenance	platforms	which	 involves	
Shepley Engineers, West Cumberland 
Engineering, Mothersill Engineering and 
PPS Electrical.
The Group has been successful in securing 
a key supply position on a number of large 
programmes 	 at 	 Sellafield	 including 	 the	
Evaporator D, Encapsulated Product Store, 
B30 and Separation Area Ventilation projects 
with total orders received during the year of 
£30m. Each of these projects involves the 
provision of an integrated service response.
The order book in Nuclear is some 71% higher 
than one year ago providing strong visibility 
for 2011 in this high quality earnings stream.
Water
The Group has extensive experience in water 
infrastructure development and maintenance, 
flood 	 alleviation,	 sea	 defences, 	 mechanical	
and electrical installations, steel fabrications, 
pumping and sewerage systems for a range 
of industries. 
Seymour’s largest client is Northumbrian Water 
(“NWL ”), the eighth largest water company 
measured by investment spend, for which it 
carries out work on four frameworks. In the 
Quality of earnings
Chief Executive’s review
07
08
09
10
£252m
£202m
£304m
£219m
Forward order book: 
£304m
 Actual 
Orders in specialist sectors:
87%
08
09
10
83%
87%
80%
07
79%
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Annual Report and Accounts 2010
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08
Chief Executive’s review continued
our reputation for quality, delivery, innovation 
and value engineering and we are at the 
forefront of developments on environmental, 
sustainability and energy saving issues. 
Allenbuild has a position on eight frameworks 
with Housing Associations, which provide 
access to an annual £500m market. During 
the year £94m of orders were received, securing 
100% of planned revenue for 2011 and 2012. 
These include a £14m project for Metropolitan 
Housing at Hertford Road, a £21m project at 
Windmill Park for Notting Hill Home Ownership 
and the £14m Pitsea London development 
for the Genesis Housing Group. 
Restoration and refurbishment 
(High quality residential)
The Group’s activity in restoration and 
refurbishment has transitioned over the last 
two years to concentrate almost exclusively 
on the high quality residential market in 
London. Walter Lilly remains a preferred 
contractor for consultants in this sector 
which is primarily funded by wealthy private 
individuals and long established London 
freehold estates. The outlook in this market 
remains strong with 75% of revenues for 2011 
secured and £150m of further opportunities 
identified. 	Our 	particular	 skills	 in	 providing	
Specialist Engineering continued
Rail
The Group continues to expand its customer 
base delivering rail infrastructure projects in 
the year for Network Rail, London Underground, 
CTRL and Southern Railways. Good progress 
was made on station modernisation schemes 
at Marble Arch and Notting Hill Gate, which 
have a combined value of over £30m. YJLi 
has recently been awarded a contract to 
undertake ground penetrating radar surveys 
for Network Rail at Reading Station. This is 
one 	of 	 the	 first 	 packages	to	 be 	 let	on	the	
major redevelopment of this station.
Our principal market in Rail is within London 
and the Home Counties where there are over 
700 stations and 30 depots. Security of 
funding for rail projects is more certain in this 
area following the Comprehensive Spending 
Review and subsequent announcements 
from the Mayor of London, which underpin 
our optimism that the rail market will continue 
to offer opportunities.
Specialist Building
Social housing
As one of the leading new build social housing 
contractors in the South East, we have 
continued to receive awards recognising 
innovative solutions to the temporary works 
challenges in extending properties underground, 
a major requirement for most high quality 
residential projects in London, provides a 
differentiator and ensures our early involvement.
Awards included further works at Grosvenor 
Crescent and a major project in Mayfair. 
Work is progressing well on both these 
contracts and their combined value has 
increased since initial award to in excess 
of £100m. Walter Lilly is also preferred bidder 
on a further £34m project in Belgravia for a 
private client.
Science and education
Our major award this year was the £45m 
Kirklees College Waterfront Campus. 
This contract, which includes substantial 
engineering works, is making good progress 
and is due for completion in July 2012. 
W e	secured	 our	 first 	project 	 via 	the 	Y ORbuild 	
Construction framework, with the award of 
the Sixth Form Centre at Ridgewood School, 
Scawsby for Doncaster Council. Further 
work was carried out for GlaxoSmithKline 
continuing our 18 year relationship. The long 
association with Defra continued with the 
Virology Containment Facility being 
completed in the year.
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Annual Report and Accounts 2010
09
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Chief executive’s review.
Retail
Work in the retail sector has increased with 
projects secured for Tesco at Risca, South 
Wales, Portland, Dorset and at Sandwell in 
the West Midlands. In the North West work 
is underway on a new Neighbourhood Centre 
at Kensington, Liverpool and in the North East 
an award was received for the refurbishment 
of the Market Street Arcade in Leeds.
People
Keeping our employees and those who work 
with us safe remains the Group’s priority and 
I am pleased that 2010 has seen us further 
reduce our Accident Incidence Rate by 26%, 
which represents a 74% reduction over the 
last four years. 
The economic environment remains tough, 
so the achievements of the Group during 
these challenging times are a testament to 
the skills, resilience, hard work and commitment 
of every employee for which the Board would 
like to express its sincere thanks.
Summary
Challenging economic conditions endure 
in 	the	industry	 with	 a	number 	 of	high 	 profile 	
businesses	having	 recently 	 suffered 	 financial 	
difficulties. 	Throughout 	 the 	 recession,	 the 	
Forward work
The Specialist Engineering 
markets in which the Group 
operates offer higher margins than 
Specialist Building and engage our 
skilled workforce in industries which 
are mainly governed by regulation.
In Specialist Building the Group 
targets markets appropriate to our 
skills and experience with contract 
selectivity part of a rigorous risk 
management approach. 
 Social housing – 40% 
 High quality residential – 28% 
 Science & education – 16% 
 Retail – 4% 
 Other – 12%
 Nuclear – 54% 
 Water – 21% 
 Remediation – 11% 
 Rail – 8% 
 Civils – 6%
Specialist Engineering Specialist Building
Chief Executive’s review
Board has sought to act swiftly to reduce 
the Group’s cost base when necessary 
and we are continually alert to any changes 
in market dynamics which can affect our 
operating	 efficiency . 	
Renew	enters	the	new	financial 	 year 	with 	
a strong, contracted order book of £304m. 
The Group remains appropriately sized 
for 	today’s	 market	and	 it	is	 both	profitable 	
and cash generative. Our strategy is sound 
and	I	 am	 confident 	that	 the 	Group 	has	 a 	
robust platform from which to grow in 
2011 and beyond.
Brian May
Chief Executive
23 November 2010
Order book:
£304m
(2009: £202m)
Specialist Engineering 
revenue increased:
11%
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Annual Report and Accounts 2010
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10
Results
Group revenue from ongoing operations was 
£290.4m	(2009:	£316.6m)	with 	 a	profit 	 before 	
tax of £4.6m (2009: £5.5m) prior to exceptional 
items and amortisation charges. A tax charge 
of 	 £1.4m	(2009: 	£1.9m)	resulted	 in	a	 profit 	
after tax for the year of £3.2m (2009: £3.7m) 
prior to exceptional items and amortisation 
charges. Exceptional items in 2010 comprised 
solely of legal costs of £251k in connection 
with 	 the 	 ongoing 	 appeal 	 against 	 the 	 OF T 	 fine. 	
£320k of amortisation charges were incurred. 
After exceptional items and amortisation, the 
profit 	for 	the	year	was	£2.7m	(2009: 	 £0.4m).
Cash 
Cash generation during the year has been 
strong and has led to an increase in our 
net cash balances which stood at £16.2m 
(2009: £14.6m) at the year end. The Group’s 
only	borrowings	are	£6k 	of 	 finance 	 leases	
and £131k of overdraft funding. The only 
cashflow 	 associated 	 with	exceptional	 items 	
during the year was the payment of £251k 
of legal costs in connection with the ongoing 
appeal 	against 	 the 	OF T	 fines. 	 As 	 a	 result 	
of the reduction in revenues in Specialist 
Building, amounts received in advance from 
construction contract customers reduced 
from £8.5m to £8.0m.
Treasury
Whilst the Group seeks to maximise the short 
term interest returns on its cash, we have 
Financial review
been	mindful	of	 the	risk	profiles 	of 	deposit	
takers and our policy remains to deposit 
funds only with AA+ rated institutions. The 
Board approves the list of institutions with 
which deposits are made on a regular basis 
and applies its own experience and 
judgement as to which institutions to use 
over and above the credit rating. Clearly 
in today’s environment of low interest 
rates, returns on cash held are modest. 
Property and Lovell America, Inc.
The Group has not realised any material UK 
property assets during the year as a result of 
the prevailing market conditions. None of the 
land assets in the USA, has been ready for 
realisation	during	the	financial 	 year	as	 local 	
management progress improvements to 
planning and zoning consents. 
Pensions
The IAS 19 valuation of the Lovell Pension 
Scheme, which was closed to new members 
in 2000, has resulted in a gross surplus of 
£1.1m 	(2009:	£2.4m	deficit) 	 primarily	due	 to	
strong investment performance. The Board 
has recognised this surplus in the balance 
sheet as the Directors, after reviewing the 
rules of the scheme, are of the opinion that 
the Group has an unconditional right to any 
surplus. In accordance with the scheme 
specific	 funding 	 requirements 	 of 	 the 	 P ensions	
Act 2005 and following the triennial valuation 
of the scheme which was carried out as at 
31 March 2009, the Board has an agreement 
with the Trustees of the scheme on the level 
of future contributions which are currently 
approximately £3.0m per annum inclusive 
of costs. 
Provisions
Provisions have reduced to £1.4m from 
£1.8m, as the Group has taken advantage 
of market conditions to terminate certain 
disadvantageous leasehold arrangements 
in respect of properties which were not being 
used by the Group. A provision of £0.5m 
has 	been 	retained	in 	respect 	 of	 the	OF T	 fine, 	
further details of which are given in Note 23 
to	the	financial 	 statements.
Taxation
A deferred tax asset included in non-current 
assets of £3.3m (2009: £4.1m) is carried in 
the balance sheet, which principally results 
from the likely future utilisation of tax losses 
through 	 the	improved	and 	profitable 	trading	
of the Group. The asset attributable to these 
losses has reduced by £0.4m. A deferred tax 
liability 	 related	 to 	 the	defined 	benefit 	pension	
scheme is shown in non-current liabilities.
The payable current year UK tax charge is 
£0.5m (2009: £nil) and there is a small prior 
year adjustment leading to a total current tax 
charge of £0.6m (2009: £32k). The remainder 
of the tax charge of £0.7m relates to deferred 
tax with the majority (£0.6m) attributable to 
“Cash generation during the year has been strong and has led 
to an increase in our net cash balances which stood at £16.2m 
(2009: £14.6m) at the year end.”  
John Samuel Group Finance Director
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Financial highlights
the defined benefit pension scheme. This 
represents an effective Group tax rate of 31% 
of which the corporation tax payable element 
represents 15%.
The Group has material tax losses to carry 
forward and the rate of corporation tax 
payable in each of the next few years is not 
expected to increase.
Net assets
The consolidated net assets of the Group 
were £13.2m (2009: £11.3m).
The 	 distributable 	 profits	 of 	 Renew 	 Holdings 	 plc	
stood at £9.9m (2009: £11.0m) providing the 
Board with the support to recommend an 
unchanged	 final 	 dividend 	 of	2.0p 	per	 share.
John Samuel
Group Finance Director
23 November 2010
Financial review
 Actual  Target
Operating profit % of revenue:
1.6%
(target 1.5%)
10
11
12
13
1.00%
1.40%
1.00%
1.8%
1.6%
1.5%
2.0%
1.6%
Net assets:
£13.2m
09
10
£13.2m
£11.3m
Net cash:
£16.2m
09
10
£16.2m
£14.6m
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Review of operations
Regional knowledge 
Specialist expertise 
The Specialist Engineering markets in which the Group 
operates offer higher margins than Specialist Building and 
engage our skilled workforce in industries which are mainly 
governed by regulation. Consequently, our Specialist Engineering 
activities have greater security of funding and more predictable 
work streams. In Specialist Building, the Group targets markets 
appropriate to our skills and experience with contract selectivity 
part of a rigorous risk management approach.
Introduction
The Group’s activities are divided 
into two business streams, Specialist 
Engineering and Specialist Building. 
In Specialist Engineering, our skills are 
applied in the main to the nuclear, water, 
land remediation and rail industries. 
In Specialist Building, our emphasis is on 
contract selectivity within particular markets 
where our businesses have great knowledge 
and experience. Currently our principal target 
markets are social housing, high quality 
residential, science and education 
and retail.
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Review of operations
The Group’s contracted order book at 30 September 
increased by 50% to £304m (2009: £202m) and includes 
70% of revenue secured for 2011 (2009: 59%). 87% of 
orders received were in our specialist sectors with 63% 
of engineering orders in regulated sectors.
Read more in our review of operations 
on the next page
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14
Review of operations continued
Nuclear
Our nuclear work concentrates on high 
hazard programmes which carry regulatory 
mandates and sustainable funding which 
gives good visibility of forward orders. 
Our order book has increased by 71% 
compared to the same point a year ago. 
W e	 operate	on	five 	nuclear	 licensed	 sites 	
at 	 Sellafield,	 Springfield,	 Capenhurst,	
Chapelcross and Drigg, where currently 
68% of the Nuclear Decommissioning 
Authority funding is allocated.
Work in the year remained focused at 
S e l l a fi e l d 	 where	we 	received	680	 orders 	
under the Multi Discipline Site Wide 
framework. 	Also	at	 Sellafield 	 as 	part 	 of	
Nuclear
Specialist Engineering within the nuclear sector is delivered 
through Shepley Engineers, a major mechanical, electrical and 
decommissioning contractor and its subsidiary businesses 
West Cumberland Engineering, PPS Electrical and Mothersill 
Engineering. Our integrated business model is unique in this 
sector and now provides a multidisciplined solution in line with 
the procurement strategies adopted by our key clients.
the Cumbria Nuclear Solutions Consortium, 
we have been appointed to a four year major 
Decommissioning Framework agreement 
which is anticipated to provide up to £124m 
of work across four appointed framework 
participants over the term.
In addition, major projects undertaken 
during the year include work at the 
Evaporator D with COGAP , Separation 
Area Ventilation with Doosan Babcock, 
Encapsulated Product Store 3 with Laing 
O’Rourke and a range of tasks within the 
B30 complex for the ACKtiv consortium.
Shepley remains the largest employer of 
mechanical, electrical & instrumentation 
trades 	 at 	 Sellafield.	 Shepley 	 and 	 PPS 	 currently	
have	40% 	of	 the 	 share 	 of	specific 	trades	
employed via the National Agreement 
Engineering Construction Industry at the 
Sellafield 	site.
Increasingly important is the integrated 
supply model offered by the Shepley group 
of companies. This is evidenced by a 
£2m 	 order	to	 build 	 and	install	 three	flask 	
maintenance platforms, where fabrication 
will be supplied by West Cumberland 
Engineering and Mothersill Engineering 
with 	electrical	 fit 	 out	by	PPS.	 The	group	
collectively employs over 475 people.
 What’s next
  Concentration on high hazard programmes carrying 
regulatory mandates and sustainable funding
  As part of the Cumbria Nuclear Solutions Consortium, 
we will deliver a wide range of decommissioning 
activity through the recently awarded four year 
decommissioning framework 
  The Group will be focused on the ongoing support 
within the major projects programmes at Sellafield 
  Increased importance of our unique integrated 
supply model 
 What we’ve achieved
  Largest employer of ME&I trades at the Sellafield site 
increasing our share during the year 
  Continued to work at five licensed nuclear sites in the UK
  Secured our position in a number of major framework 
agreements at Sellafield 
  Secured significant packages of work within various 
ongoing major project programmes at Sellafield 
  Secured order book 71% higher than a year ago
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Specialist engineering
Highly active evaporators play a pivotal role in 
the delivery of reprocessing, historic clean up 
and hazard reduction missions across the 
Sellafield	 site. 	 Construction 	 of 	 Evaporator 	 D ,	
a new Highly Active Liquid Evaporator, will 
provide additional evaporator capacity to 
support the site’s existing capability. 
The design for Evaporator D is based around the 
fabrication of large modules at an off-site facility. 
This 	 is 	 the 	 first	 time 	 in 	 the 	 history 	 of 	 Sellafield	 that	
large scale modular construction will be used. 
Shepley has been working in partnership with 
Costain 	 and 	 Sellafield	 Ltd 	 to 	 provide 	 mechanical,	
electrical and installation works.
The Shepley team have commenced work on 
site, the project is expected to provide over £20m 
of non framework revenue for Shepley, who will 
engage considerable support from Group 
companies PPS Electrical, Mothersill Engineering 
and West Cumberland Engineering.
 
Sellafield Evaporator D with Costain Oil Gas and Process (“COGAP”)
Number of people the 
Shepley group employs:
475
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Water
Review of operations continued
Water
Our businesses have extensive expertise 
in water infrastructure development and 
maintenance, 	 flood 	alleviation,	sea	 defences 	
and land reclamation. Additionally we provide 
specialist services in mechanical and electrical 
installations, maintenance and in pump sales 
and service.
A large portion of work in the water sector 
is procured through various framework 
agreements. This year Seymour completed 
£14m 	of	flooding 	 and 	 combined	 sewer 	
overflow 	(C SO)	 contracts 	 for	 Northumbrian	
Water Limited (NWL) under their framework 
agreement. 	 Seymour 	 is	 currently 	in 	the 	final 	
stage of the tender process for two of the 
AMP5 frameworks. Seymour also has a 
framework agreement with Northumberland 
County Council and two with Darlington 
Borough Council, whilst C&A have 
frameworks with Scottish Water and 
National Grid.
During 2010 work was also completed 
for JDR Cables in Hartlepool with the 
construction of a £2m industrial facility 
including installation of the sewer system 
Our activities in the water industry are principally supplied 
through Seymour Civil Engineers and its subsidiary C&A Pumps.
and pumping station followed by infrastructure 
works. A rainwater harvesting system was 
installed for Hammerite. Other clients included 
Cleveland Potash, Hartlepool, Stockton and 
Middlesbrough Borough Councils, Bertschi 
Transport and Miller Homes. 
The water sector is seeing an encouraging 
start to 2011 with over £15m of work secured. 
Recent awards include the decontamination 
and removal of brown asbestos from 600,000 
litres of water from the original headquarters of 
ICI 	 and 	 flood	 alleviation 	 schemes 	 in 	 Darlington,	
Durham and North T yneside.
 What’s next
  In the final stages of the award process for 
Northumbrian Water’s AMP5 framework agreements 
– a decision is expected by the end of 2010
  Identify and tender for further suitable framework 
agreements with Northumbrian Water and 
Local Authorities
  Work with NWL on recently awarded Clean 
Water framework
 What we’ve achieved
  Completed £14m of flooding and combined sewer 
overflow contracts for Northumbrian Water Limited 
  Prequalified and tendered for Northumbrian Water’s 
AMP5 Major Works and Sewerage Maintenance Frameworks
  Newlands Court Flood Alleviation scheme awarded 
the Institute of Civil Engineers North East Project 
of the Year 2010 (under £4m category) and Civil 
Engineering Contractors Association North East 
Project of the Year 2010
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Specialist engineering.
During the year Seymour completed £14m of 
flooding	 and 	 CSO 	 contracts 	 for 	 Northumbrian	
Water Limited (“NWL ”). 
The T yne CSO scheme for NWL was to construct 
new and upgrade existing CSOs to meet 
Environment Agency discharge consents into the 
River Tyne. Seymour and C&A undertook four 
contracts, one in the north and three south of the 
river which involved work on seventeen separate 
sections to improve CSOs. 
The 	 work 	 required 	 ranged 	 from 	 the 	 fitting 	
of mechanical and electrical screens to the 
provision of new chambers and pipelines, 
increasing 	 capacity 	 and 	 flow	 diversions.
Specialist engineering
Tyne Combined Sewer Overflow for Northumbrian Water
£15m
work secured for 2011
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Land remediation
Review of operations continued
Land remediation
Our remediation expertise is principally delivered 
by VHE Construction. Well over 500 remediation 
projects have now been completed of which 
240 were previously associated with town 
gas manufacture, making VHE the most 
experienced gasworks remediation contractor 
in the UK.
The largest remediation contract completed 
during the year was the remediation works 
on the Athletes’ Village site in Glasgow for 
the 2014 Commonwealth Games. Additionally, 
the Cudworth and West Green Bypass was 
delivered five months ahead of contract 
and below budget for Barnsley Metropolitan 
Borough Council. 
Our framework agreement with National Grid 
was extended to March 2012. We were also 
awarded the Partington Hub and Cluster Project, 
which involves the remediation of four gasworks 
sites using a central soils treatment facility 
under 	 a 	 Mobile 	 T reatment 	 Licence, 	 the 	 first 	
large scale application of the Development 
Industry Code of Practice in the UK. VHE was 
awarded further remediation works on land 
determined under Part 2A of the Environmental 
Protection Act by Cardiff Council on two 
separate projects involving over 50 individual 
domestic properties.
VHE remains preferred contractor for the St 
Helier Jersey Gasworks project where work is 
due to commence on site in December 2010.
Operating throughout the UK, the Group has significant 
experience in brownfield development and contaminated land 
management since 1979. This expertise is principally delivered 
through VHE Construction, a civil engineering business with 
specialist land remediation skills.
 What’s next
  Increased spend by National Grid and others, leading 
up to the ending of L andfill Tax Exemptions in March 2012
  Development of in-house treatment technologies to 
provide cost effective on-site solutions beyond March 2012
  Secure the award of St Helier Gasworks in Jersey due 
to commence December 2010
  Opportunities within the Clyde Gateway Regeneration 
Scheme and regional housebuilding
 What we’ve achieved
  National Grid framework extended for two more years 
  VHE established as UK premier Part 2A contractor
   Secured Partington Hub and Cluster project for National Grid
  Cudworth and West Green Bypass project recognised at 
Yorkshire and Humberside Best Practice Awards
  Awarded fourth consecutive annual RoSPA Gold Medal
  Completion of site preparation works for the 2014 
Commonwealth Games Athletes’ Village on time for 
Glasgow City Council
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Specialist engineering.
The £6m project for Glasgow City Council at 
Dalmarnock involved a programme of remediation 
work in preparation for the development of the 
2014 Commonwealth Games Athletes’ Village. 
The 	site	 identified 	for	 the	 Village,	 which	 will 	 host	
6,500 athletes and officials, was a mix of 
residential, industrial and open spaces with 
substantial areas of vacant land. 
The works involved site clearance to allow the 
selective excavation of around 140,000m³ of 
contaminated soils and materials from various 
areas, following its former occupation by dye 
works, fuel stations and a chemical plant, 
across 33 hectares of the proposed site. The 
majority of excavated materials were processed 
and treated on site to permit its reuse as an 
engineering fill. Approximately 100,000m³ of 
the material underwent soil washing using 
bespoke plant designed, assembled and 
operated by VHE. 
Treatment of invasive species such as Japanese 
Knotweed and Giant Hogweed was also 
undertaken during the works. VHE employed 
archaeology specialists to inspect, identify and 
record any historical structures uncovered by the 
remediation works. The remediation project was 
completed on time earlier this year.
Specialist engineering
Number of years National 
Grid framework has been 
extended for: 
2 
2014 Commonwealth Games Athletes’ Village, Glasgow
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Rail
Review of operations continued
Rail
YJLi delivers rail infrastructure for clients such 
as Network Rail, London Underground and 
Southern. In the year YJLi carried out a 
package of works to modify London 
Underground’s train depot at Lillie Bridge, 
adjacent to Earls Court, enabling the new 
rolling stock for London Underground’s Sub 
Surface Line upgrade to be accommodated. 
Also during the year work was undertaken 
as part of a package of redecoration and 
improvement works at ten stations for 
Southern Railways. Progress also continues 
on station modernisation schemes at 
Marble Arch and Notting Hill Gate for 
London Underground. The projects have 
a combined value of over £30m and are 
due to complete early 2011.
YJLi has recently been awarded a contract 
to undertake ground penetrating radar 
surveys for Network Rail at Reading station. 
The output of these surveys will be a 3D CAD 
model identifying the location of buried services. 
This model will be used to inform the design 
of the Reading station upgrade and the 
Crossrail spur to Reading.
The Group has 25 years’ experience working in the rail sector. 
Work is mainly delivered by YJL Infrastructure (“YJLi”) who are 
based in the South East, where there are over 700 railway stations 
and 30 train maintenance depots.
Security of funding for rail projects in the 
South East is more certain following the 
October Comprehensive Spending Review 
and subsequent announcements from the 
Mayor of London. This underpins optimism 
that the rail market will continue to offer 
opportunities for the Group.
 What’s next
  Ground penetrating radar surveys to be undertaken for 
Network Rail at Reading station
  Further specialist station and depot upgrade projects in 
the South East 
  Completion of Marble Arch and Notting Hill Gate projects
 What we’ve achieved
  Good progress at Marble Arch and Notting Hill Gate 
station modernisation schemes
  Successful completion of the Waterloo Peak Hour 
Subway for Network Rail
  Expanded client portfolio
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Specialist engineering.
Built in the 1900’s and on the Central Line, Marble 
Arch station is part of an upgrade of tube stations 
across the network. The £15m two year long 
project for London Underground Limited will 
provide congestion relief and modernisation 
within a heavily used station.
The station is surrounded by buildings, including 
a hotel overhead, and fronts one of the busiest 
road junctions in London. The ticket hall roof is 
below the road and pavement of Oxford Street 
and 	 has 	 significantly	 deteriorated 	 due 	 to 	 water	
ingress and poor detailing in the past. YJLi are 
repairing and strengthening the supporting steels 
with minimal disruption to the large number of 
vehicles and pedestrians above. 
YJLi have been asked to adopt and take 
responsibility for the employer’s designs for this 
project, 	 taking 	 the 	 scheme 	 through 	 the 	 final 	
stages of obtaining assurance approvals.
Work is carried out while the station is closed 
between 00:35 and 05:00 hrs allowing the station 
to be completely operational during this two 
year project.
Specialist engineering
Marble Arch Station Modernisation Scheme
Number of years’ experience 
in the rail sector:
25
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Social housing
Social housing
Allenbuild achieved £94m of project awards 
in the year including the £14m Hertford 
Road project for the Metropolitan Housing 
Group to construct 117 apartments and 17 
commercial units and the £8m scheme at 
Bollo Lane, London for One Housing Group. 
Project awards were also received for the £21m 
project at Windmill Park for Notting Hill Home 
Ownership, where Allenbuild will construct 
212 residential homes and the £14m Pitsea 
London development for Logic Homes 
consisting of both apartments and a retail 
unit development. 
T wo of Allenbuild’s framework agreements with 
Genesis Housing and the One Housing 
Group were renewed during the year and two 
new framework agreements were awarded 
with Housing 21 and Notting Hill Housing. 
Work continues on the £15m Kenworthy Road 
project for Network Housing to construct 
119 mixed use units, which is due to complete 
in March 2012. Due for completion in May 
2011 and progressing well, is the £12m 
Webber Street development for Hexagon 
Housing Association. 
Projects completed during the year include 
t h e	 £19m 	 Fairfield	 Road 	 project, 	 the 	 £11m	
Pier Road project and the £8m Sheep Lane 
project, all for the Genesis Housing Group. 
Specialist Building in the new build social housing sector is 
delivered through our Allenbuild business using traditional, 
design build and partnering under framework arrangements.
Review of operations continued
 What’s next
  Works commence at the £8m Bollo Lane project for One 
Housing Group 
  Completion of the £21m Windmill Park project for 
Notting Hill Home Ownership
  Successfully complete the £14m Pitsea project for 
Logic Homes
  Further develop framework opportunities in the social 
housing market
 What we’ve achieved
 A position on 8 framework agreements
  £94m of project awards during the year
  Renewal of One Housing Group and Genesis 
Housing frameworks
  Two new framework agreements with Housing 21 and 
Notting Hill Housing
  Projects completed at Fairfield Road, Sheep Lane and 
Pier Road for Genesis Housing 
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Specialist building
Windmill Park, Surrey £21m
The construction of the £21m Windmill Park 
project in Surrey consists of 212 residential 
homes including 1, 2, 3 and 4 bedroom 
apartments and townhouses for client Notting 
Hill Home Ownership. 
The development includes retail accommodation, a 
remembrance square and commemorative garden 
all clustered in a series of courtyard concepts.
The site power and heat generation will be 
through a centralised plant system and 
distributed to the individual homes.
Planned revenue secured 
for 2011 and 2012:
100%
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High quality residential
High quality residential
Walter Lilly has particular expertise in the 
transformation of private residences, listed 
buildings and those of historical interest, 
often involving both challenging structural 
work 	 and 	specialist	finishes. 	Their	 expertise 	
in the provision of temporary and substructure 
works in London with its obvious space 
restrictions is becoming increasingly important 
with many clients looking to expand below 
ground. 2010 saw Walter Lilly complete £60m 
of private residence refurbishments in London.
During the year opportunities in the restoration 
and refurbishment market have remained 
strong with additional awards at the 
Grosvenor Crescent project which follows 
previous work undertaken to convert eight 
terrace properties into lateral apartments. 
The 	 additional	£12m	fit 	 out	works 	includes	
M&E services throughout, staircases, 
decoration	and 	many	specialist 	finishes 	
completing the £60m project. Additionally 
awards were received for the refurbishment 
of the last remaining original mansion on 
Walter Lilly is a leading provider in the restoration and 
refurbishment of high quality and prestigious residential 
properties in and around London. 
Review of operations continued
Grosvenor’s Mayfair Estate valued at £35m 
and	a	£6m	second 	 stage 	 fit	 out 	 in 	 Chelsea.	
Walter Lilly remains preferred bidder on a 
£34m project in Belgravia.
Other restoration works during the year included 
refurbishment of the cast iron roof at the Palace 
of Westminster and the conservatory restoration 
at Chiswick House. We have also been 
appointed as restoration contractor to the 
listed glasshouse at Abbey Lea House, Dublin 
which is due for completion in early 2011. 
 What’s next
  Commence £6m project in Chelsea
  Preferred bidder on a £34m project in Belgravia
  Chiswick House conservatory restoration nominated 
for RIBA London Award
 What we’ve achieved
  £60m of private residence refurbishments completed 
in the year
  7th of July Memorial won RIBA London award with two 
further projects nominated
  The completed refurbishment project of a Nash Villa 
in Regents Park awarded the Plaisterers Trophy 
  Further award at Grosvenor Crescent for fit out bringing 
project value to £60m
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This substantial property is on the Phillimore 
Estate, just off Kensington High Street and is still 
in the control of the Phillimore Trust. The house 
was 	 built 	 in 	 the 	 1850’s 	 and 	 first	 leased 	 in 	 1859,	
as part of a development project of 205 dwellings 
undertaken by Charles Phillimore and local builder 
Joseph Gordon Davis. 
Walter Lilly has undertaken major structural 
alterations and extension to this home which is 
situated within the Holland Park Conservation 
Area, re-forming it into a single residence from 
six 	 flats.	 The 	 house 	 was 	 taken 	 back 	 to 	 shell 	 and	
core. 	 The 	 façade 	 was 	 retained, 	 existing 	 floors 	
removed and a new steel frame inserted. Part of 
the rear wall was dismantled to create space 
for the contiguous piled basement extension in the 
rear garden, all involving substantial temporary works.
The residence includes a number of interesting 
features, including a spiral staircase the whole 
height of the building with a glass balustrade and 
oak handrail, two sunroofs and a number of 
wardrobes constructed in Siberian Pine that were 
manufactured in Russia. The Kalzip roof over the 
kitchen area and use of glass in the design give a 
contemporary feel to the rear of the property and 
provide an excellent entertaining space.
The residence consists of 6 en-suite bedrooms, 
library, gym, garden room and staff quarters in 
addition to the other living accommodation. 
Specialist building
Private Residence, Holland Park, London
2011 revenue secured:
75%
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Science and education
Science and education
In education Allenbuild was awarded the 
Kirklees College Waterfront Campus project 
in	 Huddersfield. 	The	£45m	project	 includes	
substantial engineering works and will open 
up 	 the 	 Huddersfield	 Narrow 	 Canal 	 which 	 runs	
under the site to create a waterway which will 
provide cooling water for the college building. 
The project, due for completion in July 2012, 
will include a central atrium, learning resource 
centre, restaurant, bistro, refectory 
and classrooms.
Allenbuild 	 secured 	 its 	 first	 project 	 via 	 the 	 Y ORbuild 
Construction framework, with the award of the 
new £5m Sixth Form Centre at Ridgewood 
School, Scawsby for Doncaster Council.
In September Allenbuild completed the 
£5m	Sandal 	Magna 	School	for 	 W akefield 	
Metropolitan District Council. The project 
has been chosen to receive Zero Carbon 
Exemplar Funding and will be an example 
of the best-designed schools of the future 
for its use of materials from renewable sources 
including glulam laminated timber beams 
and reclaimed bricks from the existing school.
In the North West Allenbuild was awarded 
a framework project from Wigan Metropolitan 
Borough Council for alterations and 
modifications 	 to 	 St	James’	School	in 	W igan.	
In the year Allenbuild completed the Capstone 
Building at Liverpool Hope University, the £6m 
project includes a state of the art performance 
space 	 and 	 angel 	 field	 gardens. 	 Also 	 completed	
was the Secure Education Unit at Newton-
le-willows for Red Bank Community Home 
for St Helens Metropolitan Borough Council.
Britannia Construction continued their work 
at 	 Bath 	 University 	 on 	 the 	 fit	 out 	 of 	 the 	 Students’	
A number of businesses in the Renew Group specialise in 
the science and education sectors delivering a range of 
projects nationwide.
Review of operations continued
Union building. The project follows the earlier 
design & construction of a two storey steel 
frame extension to the Students’ Union 
including connection to the existing building.
In science, Walter Lilly was awarded and 
completed the latest project at Stevenage 
for GlaxoSmithKline continuing their eighteen 
year relationship. Also completed for the 
Veterinary Laboratories Agency, an executive 
agency of the Department of Environment, 
were the £7m Virology Containment Facility 
and £5m New Stores Building, winner of the 
2010 BRE National BREEAM Industrial Award.
As part of the National Physical Laboratories 
framework, Walter Lilly was awarded and 
completed the Enforcement Evidence Store 
fit 	 out	contract 	for 	the 	 National	Measurement	
Office 	during	the	year .
 What’s next
   First project awarded on the YORbuild framework with 
Ridgewood School, Doncaster 
  Continuation of the £45m Kirklees College Waterfront 
Campus project for Kirklees College
  Completion of Bath University fit out of the 
Students’ Union
 What we’ve achieved
  Continued eighteen year relationship with GlaxoSmithKline 
  National BREEAM award (Industrial) and National 
Considerate Constructors Bronze award for VLA 
Weybridge project
  Completion of Sandal Magna School for Wakefield 
Metropolitan District Council
  Completion of Capstone Building at Liverpool Hope 
University including a state of the ar t 
performance space
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Allenbuild has completed the £5m Sandal Magna 
Junior 	 & 	 Infant 	 School 	 project 	 for 	 Wakefield 	
Metropolitan District Council. The school is formed 
of three single storey wings, joined by a series of 
glazed links. 
The school, which has been chosen to receive 
Zero Carbon Exemplar Funding, will be an 
example of the best-designed schools of the 
future due to its construction using materials from 
renewable sources including glulam laminated 
timber beams and reclaimed bricks from the 
existing school. 
The school bell was removed from the existing 
school and incorporated into the new school, 
something that the children were keen to retain. 
The new building was completed in September 
this year, with landscaping completed in November. 
Specialist building
Sandal Magna, Wakefield
£45m
Kirklees College Waterfront 
Campus project commenced
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28
Review of operations continued
Retail
Retail
During the year Britannia Construction 
commenced work at a new £14m Tesco 
store in Risca, Wales where we are 
constructing an 80,000 sq ft superstore. 
The 	 project	includes 	 a	separate	 fit 	out 	
contract. Work is also underway for Tesco 
on a £6m project to construct a new retail 
store in Portland, Dorset and on a £10m 
project at Sandwell, West Midlands. 
Good progress is being made at the £3m 
development for Quedgeley Urban Village 
Limited carrying out infrastructure and enabling 
works for a mixed use development which 
A number of businesses in the Group are able to provide specialist 
services to the retail sector and have seen growth evidenced 
through the award of a variety of projects throughout the UK.
will include residential, commercial, retail 
and leisure facilities. Allenbuild is working 
on a new £5m neighbourhood centre at 
Kensington for client CTP Securities Ltd, 
the project will include seven retail units, 
24	 apartments	and 	a	community	 fire 	station.	
In	the 	 year	 Allenbuild	was	awarded	 an 	office 	
and retail development for Redman Henan 
Properties in Wythenshaw and a £3m 
refurbishment of the Market Street Arcade 
in Leeds for client Oaklyn Investments, Inc. 
to undertake a refurbishment of the arcade 
providing retail and restaurant accommodation.
 What’s next
  Completion of a new Tesco retail store in Portland, Dorset
  Completion of the development for Quedgeley Urban 
Village Limited
  £10m project at Sandwell for Tesco
 What we’ve achieved
  Award of £14m Tesco Store in Risca, Wales
  Award to refurbish the Market Street Arcade in Leeds
  Award of a new neighbourhood centre at Kensington for 
CTP Securities Ltd 
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Specialist building.
Britannia Construction continues work on the 
design and build of a £14m T esco superstore in 
Risca, Wales for client Chelverton Deeley Freed. 
The project includes site preparation, shell 
construction, 	 associated 	 highway 	 and 	 fit	 out 	 works.	
Site topography and contamination from previous 
use as a steel works mean the project is on an 
innovative and fast track delivery programme. 
During the initial site works orchids and slow 
worms were found. The orchids have been lifted, 
replanted into pots with a carefully managed 
watering regime in place and will later be planted 
in a public wildlife area close to the site. The slow 
worms have been transported to a local school 
where they will cared for before being returned to 
the wildlife area.
Tesco Risca, Wales
£30m
of awards in the year on 
Tesco projects
Specialist building
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30
Corporate social responsibility
A committed response
Renew is committed to balancing the Group’s economic sustainability 
alongside its social and environmental responsibilities. Our respect for 
people encompasses treatment of our own employees, our interaction 
with the communities in which we operate and the management of 
relationships with our clients, consultants and supply chain. 
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Corporate social responsibility 
Renew endeavours to minimise the 
impact and maximise the social, economic 
and environmental benefits of the Group’s 
operations beyond compliance with 
minimum legal requirements. 
Our key areas of focus are: 
 Safety
 Environmental and sustainability
 Employment and training
 Community engagement
 Charitable giving
 The Considerate Constructors Scheme
Read more in our CSR report on the next page
Active encouragement
•  The Group’s Accident Incidence Rate has decreased by 
26% in the year, a total reduction of 74% in the last 4 
years, and is currently well below industry averages.
•  We look to close the future gap in specialist skills by 
embracing apprentice programmes. Within our nuclear 
sector we currently support 27 apprentices at various 
stages of development.
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Corporate social responsibility continued
General
Renew is committed to balancing the 
Group’s economic sustainability alongside 
its social and environmental responsibilities. 
Our respect for people encompasses 
treatment of our own employees, our interaction 
with the communities in which we operate 
and the management of relationships with 
our clients, consultants and supply chain.
Renew endeavours to minimise the impact 
and to maximise the social, economic 
and	environmental 	benefits 	of	the 	 Group’s 	
operations beyond compliance with minimum 
legal requirements.
Safety
Renew and its employees take a proactive 
approach to safety and encourage staff to 
be involved in promoting and enforcing safe 
work culture and practices on its sites. All of 
our businesses run their own safety initiatives 
determined by the industries in which they 
work, an example being Walter Lilly and their 
“Safety Matters” campaign which includes 
regular in house workshops and safety awards 
presented twice yearly. All Walter Lilly site 
based staff are required to undertake the 
CITB Site Management Safety Training 
Scheme as well as a four day First Aid at 
Work course and Construction Skills 
Certification 	 Skills	 registration.	
This year has seen the Group introduce a 
compulsory glove wearing policy. This has 
contributed to a marked reduction in the 
quantity of hand injuries sustained on our sites. 
The 	 Group	is	 currently 	 implementing	‘face	 fit 	
testing’ for respiratory protective equipment.
The Group’s Accident Incidence Rate 
has decreased by 26% in the year, a total 
reduction of 74% in the last four years, and 
is currently well below industry averages. 
It is important to regularly assess our approach 
to Health and Safety. One method employed 
is the Human Performance Initiative used 
by Shepley Engineers and its subsidiary 
businesses which each undertake a climate 
survey annually. The survey provides a clear 
indication that Health and Safety training has 
a positive effect on the safe performance of 
operations. Shepley and its subsidiary PPS 
Electrical have worked for over 1.3m man 
hours since a lost time event occurred.
Awards
Considerate Constructors Scheme
As part of Renew’s Group Minimum 
Requirements, each site is required to 
register with the Considerate Constructors 
Scheme where in the year VHE received a 
second Bronze Award and two Beyond 
Compliance 	Certificates. 	W alter	 Lilly 	 also	
won two Bronze Awards, one for the DEFRA 
F ramework 	and 	the	other 	at	 a	fit 	 out	project 	
in Chelsea, London. During 2010, Group 
businesses achieved consistently high 
scores in excess of 30.
Construction Manager of the Year
At this year’s Chartered Institute of Building 
Construction Manager of the Year Awards 
Allenbuild’s Ray Wilson received the Silver 
Award for the £6–8m project category. Walter 
Lilly’s Senior Project Manager Bob Byrne won a 
Highly 	Commended 	 Certificate 	 for	his 	work	
at a substantial private villa and two of 
Britannia Construction’s project managers 
made 	the	 final 	of 	the 	competition, 	Phil	W yatt 	
for Amesbury Salt Depot and Dudley Taylor 
for Bourton on the Water School.
RoSPA
Both Shepley Engineering and PPS Electrical 
were awarded a RoSPA President’s Award 
during 2010 for achieving 14 consecutive 
Gold Awards. West Cumberland Engineering 
was awarded a Silver Award on only their 
second year of application. VHE Construction 
received its fourth consecutive annual RoSPA 
Gold Medal Award along with Britannia 
Construction who followed on from a Silver 
Award last year to achieve a Gold Award 
in 2010. Gold Award winners have achieved 
a high level of performance underpinned by 
good management systems which deliver 
consistent improvement.
RIBA
During the year a Royal Institute of British 
Architects (“RIBA”) London award was 
achieved for the 7th July memorial project 
in Hyde Park. Also nominated for RIBA 
awards were Walter Lilly’s QM Bio Enterprises 
Innovation Centre and Chiswick House 
Conservatory projects. At Allenbuild, the 
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Corporate social responsibility 
Sackler Centre, for client Victoria and Albert 
Museum, was listed in RIBA’s “ Award Winning 
Buildings of 2010” for the London area.
Other awards
Other awards in the year include VHE’s 
Cudworth and West Green Bypass receiving 
recognition at the Yorkshire and Humberside 
Best Practice Awards. At Allenbuild, site 
manager 	 Rob 	 Schofield 	 and	the 	 team 	 which	
worked on the Barking Road project won 
a National House Building Council Pride in 
the Job award. The project at Clyde Terrace 
won 	a	Housing	Design 	 A ward 	 Certificate.
Seymour received the Institute of Civil Engineers 
Project of the Year Award 2010 for the 
Newlands Court Flood Alleviation Scheme 
which also won the North East Regional Civil 
Engineering Contractors Association (“CECA ”) 
Project of the Year Award. Seymour was also 
awarded the CECA T raining Company of the 
Year Award 2009 and C&A received the 
SaBRE 	 Certificate	 of 	 Support 	 in 	 national	
recognition of their commitment as a supportive 
employer of the Armed Forces Reserves.
Britannia	Construction	 was 	 one	 of	 the 	 first 	
companies	to 	gain	 the 	Platinum	Certificate 	
of Commitment from the Construction Skills 
Certification 	 Scheme 	 (“C SC S”). 	 The 	 award	
recognises companies with 90% or more of 
their on site workforce having CSCS cards. 
Walter Lilly won a National BREEAM award 
2010 in the Industrial category for their VLA 
stores project at DEFRA and the Plaisterers 
Trophy 2009 presented earlier this year for 
their Regent’s Park Villa project.
Environment and sustainability
Each Group business has its environmental 
standards and systems audited by the BSI on 
a biannual basis as part of their ISO 14001 
accreditation. In addition, our businesses 
continue to monitor their environmental impact 
with various initiatives including recycling 
waste where possible. 
Each business in the Group strives to ensure 
their projects include a high level of sustainability 
features including innovations such as ground 
source heat pumps, photovoltaic cells, solar 
panels, rainwater harvesting and PIR lighting 
which helps both Renew and clients meet 
and exceed their environmental targets.
Employment and training
All Group businesses are committed to 
providing training opportunities with many 
engaging with local training providers. Seymour 
partners St Hild’s specialist engineering school 
in Hartlepool and provides work experience 
for 14 and 15 year olds from the school 
alongside Hartlepool College of Further 
Education and Construction Skills. Four 
of Seymour’s employees are also STEM 
Ambassadors for the Tees Valley. STEM 
Ambassadors are people from science, 
technology, engineering or mechanical 
backgrounds who volunteer as inspiring 
role models for young people. Seymour 
regularly supports staff at college studying 
engineering with a number of employees 
on day release schemes. 
Walter Lilly has received training provider 
status from the Engineering Construction 
Industry Training Board for their supervisory 
management training and development 
programme and supports a number of 
sponsored students from Loughborough 
University who are undertaking construction 
management and quantity surveying courses. 
Students are offered industrial placement 
and employment during holiday periods in 
addition to supporting school pupils in work 
experience and taking part in open evenings 
promoting both the business and the 
construction industry.
Allenbuild 	was	 awarded 	a 	ten	year	certificate 	
from Investors In People for commitment to 
their employees. Allenbuild also participate 
in the Construction Training Initiative which 
works with adult construction trainees 
providing them with access to high quality 
waged work placements. The work placements 
are an excellent way to develop skills, gain 
qualifications 	and 	obtain	work	in	 the	industry	
after college. Mary Brennan, a senior training 
and employment worker from Notting Hill 
Housing Trust, commented:
“As a framework contractor with Notting Hill 
Housing, Allenbuild has a particularly close 
relationship with us. The high quality and 
standard of work demanded by Allenbuild 
of their subcontractors is paramount to 
providing good training opportunities for 
our trainees. They contact us early about 
potential new sites and provide a programme 
of works to enable us to plan the work 
placements effectively. The evidence so 
far is that our trainees are exceptionally well 
supported which bodes very well for the future”.
At Shepley, in response to future demand 
for skilled resource within the nuclear sector, 
significant 	investment	 has 	 been	made	 in	
an apprenticeship programme supporting 
32 craft apprentices at various stages of 
development. Shepley continues to support 
the Arkwright Scholarship Scheme with the 
objective of identifying and supporting 
scholars focused on a career in mechanical 
or electrical engineering. This year sees the 
sponsorship of a scholar from the local 
St Benedict’s School.
Community engagement 
and charitable giving
Each business in the Group is committed to 
ensuring a positive impact on the communities 
in which they work. A time capsule cast 
in lead was buried at Allenbuild’s Pitsea 
Development organised by Logic Homes. 
The event was in association with the 
Genesis Housing Group. Allenbuild also 
organised for the Battalion of the Irish 
Guards to attend a number of Chelsea 
football matches prior to their deployment 
to Afghanistan in September 2010. YJLi 
continues to support the London Transport 
Museum as part of their community initiatives.
Shepley engages with its community via the 
Shepley group fund through the Cumbria 
Grassroots Endowment Fund challenge. 
The Endowment Fund provides a commitment 
which will be used for grants on a range of 
worthwhile Cumbrian causes. Shepley has 
also commenced social awareness training 
which 	 during 	 its 	 first	 year 	 has 	 seen 	 apprentices	
carrying out extensive work at both the Centre 
for Complementary Care in Muncaster and 
the Harbour Commission in Whitehaven.
Also 	benefiting 	the	 wider 	communities,	
many Group businesses participate in 
charity work. In May this year, twelve staff 
took part in the Yorkshire Three Peaks 
Challenge where they successfully 
completed the 24.5 mile circuit in less 
than twelve hours raising almost £5,000 for 
The Alzheimer’s Society. Dean Redmond, 
a quantity surveyor for Allenbuild, 
completed the London Marathon in 
support of St Christopher’s Hospice and 
received a donation from the business.
Walter Lilly is active in raising charitable funds 
for causes principally involving children and 
cancer care and participates in the Genes for 
Jeans day annually which helps support 
children and young people with genetic 
disorders. Other charities supported by 
the Group include the Hospital Heartbeat 
Appeal, the Royal National Lifeboat Institution 
and the Guide Dogs for the Blind.
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34
Directors’ report
Company No: 650447
The Directors present their report and the audited accounts for the year ended 30 September 2010.
Principal activities
For the year ended 30 September 2010 the principal activity of the Group was in construction and construction related activities. The main 
construction activities are carried out in the United Kingdom with some development activities in the USA. More details of these activities, the 
year’s trading and future developments are contained in the Chairman’s Statement, the Chief Executive’s Review, the Review of Operations 
and the Financial Review. A list of the principal operating subsidiaries of the Group as at 30 September 2010 appears on page 80.
Results and dividends
The Group profit for the year was £2,736,000 (2009: £378,000). The Directors recommend the payment of a final dividend on Ordinary Shares 
of 2.0p (2009: 2.0p) giving a total for the year of 3.0p (2009: 3.0p).
Business review
Information that fulfils the business review requirements applicable to the Group can be found in this report, the Chief Executive’s Review and 
the Review of Operations and is incorporated into this report by cross reference.
Key performance indicators
The Directors have established a number of key performance indicators which they use to measure and monitor the performance of the 
Group in a number of different areas. These measures are set out in the table below. Operating profit margin is a major performance indicator 
and the Board has set targets for sustained improvement over the next few years. The order targets have been established as part of the 
Board’s drive to improve the quality and sustainability of the Group’s workload and to support the reliability of financial performance. The 
safety record improvement target is set annually and achievement of this target is an essential component of the bonus scheme for each 
Director and senior manager within the Group. 
Orders from repeat clients:
71%
(target 66%)
08
09
10
11
66%
66%
66%
66%
Orders in specialist sectors:
87%
(target 66%)
08
09
10
11
83%
87%
80%
66%
66%
66%
66%
Operating profit % of revenue:
1.6%
(target 1.5%)
10
11
12
13
1.00%
1.40%
1.00%
1.8%
1.6%
1.5%
2.0%
Reduction in accident incidence rate:
74%
(target 41%)
08
09
10
11
57%
74%
64%
41%
34%
27%
47%
1.6%
07
52% 19%
66%
71%
77%
72%
07
79% 66%
07
87%
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Directors’ report
Principal risks and uncertainties
This Annual Report contains certain forward looking statements. These statements are made by the Directors in good faith, based on 
the information available to them up to the time of approval of this report. Actual results may differ from those expressed in such statements, 
depending on a variety of factors. These factors include customer acceptance of the Group’s services, levels of demand in the market, 
restrictions to market access, competitive pressure on pricing or additional costs, failure to retain or recruit key personnel and overall 
economic conditions.
A risk inherent in the construction industry occurs in the nature, timing and contractual conditions which exist at the time of contract 
procurement. To mitigate these risks, the Group has a system of pre-contract and pre-tender risk assessment whereby senior management, 
including the Executive Directors where appropriate, review and advise on specific issues arising in the contract procurement process. 
The Group also seeks to limit its risks by specialising in certain markets where it has extensive experience and a particular skills base.
Derivatives and other financial instruments
The Group’s principal financial instruments comprise bank loans, cash and short-term deposits and obligations under finance leases. 
The main purpose of these financial instruments is to provide finance for the Group’s operations. The Group has various other financial 
instruments such as trade receivables and trade payables that arise directly from its operations. It is, and has been throughout the period 
under review, the Group’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the Group’s 
financial instruments are interest rate risk, liquidity risk, credit risk and foreign currency risk.
Interest rate risk
Interest bearing assets comprise cash and bank deposits and earn interest at floating rates. 
Liquidity risk
The Group’s policy is to ensure availability of operating funds by maintaining an appropriate cash balance in both current and deposit 
accounts and, when necessary, to establish appropriate levels of borrowing facilities to provide short-term flexibility.
Foreign currency risk
As a result of the investment in operations in the United States, movements in the US dollar/sterling exchange rate could materially affect 
the Group’s and the Company’s balance sheet. During the year, the Company capitalised its inter company loan with its US subsidiary 
undertaking and as a result repaid the US$ loan which it had previously used as a hedge against currency movements. To do so, the 
Group used the matching sterling cash deposit which acted as security for the US$ loan. As at 30 September 2010, £12,863,000 
(2009: £12,048,000) of the Group’s assets are denominated in foreign currency. The Group does not use derivative financial instruments 
in its management of foreign currency risk.
Credit risk
The Group’s principal financial assets are bank balances, cash, amounts recoverable on contracts and trade receivables, which represent 
the Group’s maximum exposure to credit risk in relation to financial assets.
The Group’s credit risk is primarily attributable to its amounts recoverable on contracts and trade receivables.
Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending upon their credit 
rating. The amounts presented in the balance sheet are net of allowances for doubtful debts, estimated by the Group’s management based 
on prior experience and their assessment of the current economic environment.
Payment of creditors
The Group recognises the importance of good relationships with its suppliers and sub-contractors and has established the following payment policy:
(a) agree payment terms in advance of any commitment being entered into;
(b) ensure suppliers are made aware of these terms by inclusion of the terms of payment on the order or contract; and
(c)  ensure that payments are made in accordance with the terms of the contract or order providing that the presented documentation is 
complete and accurate.
The Company’s average creditor days during the year was 34 days (2009: 33 days).
Donations
Charitable donations made by the Group during the year amounted to £37,589 (2009: £31,781). 
The Group made no political donations during the year (2009: £nil).
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36
Directors’ report continued
Employees
The Directors recognise the need for communication with employees at every level. All employees have access to a copy of the Annual 
Report and Accounts which, together with staff briefings, internal notice-board statements and newsletters, keeps them informed of the 
Group’s progress. The Group produces a quarterly in house publication, Renews, which provides information about the activities and 
performance of the Group to its employees.
The Group continues to be committed to the health, safety and welfare of its employees and to observe the terms of the Health and Safety 
at Work Act 1974 and all other relevant regulatory and legislative requirements.
It is the policy of the Group that there shall be no discrimination or less favourable treatment of employees, workers or job applicants in 
respect of race, colour, ethnic or national origins, religious beliefs, sex, sexual orientation, disability, political beliefs, age or marital status. 
Full consideration will be given to suitable applications for employment from disabled persons, where they have the necessary abilities and 
skills for that position, and wherever possible to re-train employees who become disabled, so that they can continue their employment in 
another position. Renew and its subsidiaries engage, promote and train staff on the basis of their capabilities, qualifications and experience, 
without discrimination, giving all employees an equal opportunity to progress within the Group.
Health and safety management
B May continues as the designated Board Director of Health and Safety with Group responsibility for safety and environmental management. 
Health, safety and environmental management issues and reports are regularly reviewed at Group Board meetings with the Head of 
Department in attendance when necessary.
The Executive Management Committee, chaired by the Chief Executive, discusses and progresses policy, legislative changes, best practice, 
training needs, inspections, audits (internal and external), performance measurement and statistical information. All topics are discussed with 
a specific focus on improvement. 
Control at business level remains with subsidiary Managing Directors who are required to appoint a Director who is responsible for safety 
and environmental matters. Both safety and environmental issues are discussed as the first agenda item at monthly Board meetings. Each 
business safety and environmental meeting encourages open communication between all employees and is a key part of the Group’s efforts 
to gather and disseminate good practice for inclusion in business-based management systems. Minimum safety and environmental 
standards are contained within bespoke business Safety and Environmental Management Systems. This system is based on Group activities 
and provides specific standards, procedures, information, forms and advice which accommodate changes in legislation expected during the 
coming financial year. Management advice is provided by the Group Health, Safety and Environmental Department consisting of the Group 
Health, Safety and Environmental Director, an administrator and regional Group Safety and Environmental Advisors.
Certain Group companies employ their own specialist advisors who liaise directly with the Group HSE Director on common issues. The Group 
maintains its membership with the Royal Society for the Prevention of Accidents (“RoSPA”) and locally-based construction safety groups. All 
safety and environmental department personnel hold membership with the Institution of Occupational Safety and Health (“IOSH”). Attendance 
on the five day CITB Site Safety Management Training Scheme continues to be a requirement for all construction management personnel, 
with a two day refresher required every five years. A one day Directors and Senior Managers course is available internally and was used to 
introduce new systems and detail changes to construction legislation. Short duration ‘tool box talks’ and ‘safety briefings’ are increasingly 
used to enhance the knowledge and competence of supervisory management. 
Group policy requires each business to report and record all injuries, diseases and dangerous occurrences, regardless of severity. An incident 
database is maintained to collate this information and provide statistical data allowing performance to be measured and determine system 
amendment and future training requirements. A system of Safety and Environmental Alerts ensures lessons learnt and changes to working 
practices are rapidly transmitted to our workforce, businesses and their contractors. The Accident Incidence Rate (“AIR”) for the year 
ended 30 September 2010, measured on the standard base line of 100,000 persons at work, is a key area where the Group measures its performance. 
Corporate social responsibility and the environment
The Group’s Corporate social responsibility report, which includes its report on the environment, is on pages 30 to 33.
Directors
The Directors of the Company who served throughout the year and their brief biographical details are set out below. 
Non-executive Directors
John Bishop – Director, 65, was appointed to the Board as a Non-executive Director in October 2006. He is a Chartered Accountant with over 
20 years’ PLC experience at main board level. Before retiring in 2005, John spent twelve years at Morgan Sindall Plc as Development Director 
and latterly as Finance Director. He is a non-executive director of Beagle Aircraft Limited.
Roy Harrison OBE – Director, 63, was appointed to the Board as a Non-executive Director in November 2003. Subsequently, he was 
appointed Executive Chairman in March 2004, reverting to Non-executive Chairman with effect from 1 October 2005. He is a former chief 
executive of the Tarmac Group, senior independent director of BSS Group PLC and has a number of investing director positions in private 
construction materials companies. He is governor and chairman of a number of City Academies.
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Directors’ report
Executive Directors
Brian May – Director, 59, was appointed to the Board as Chief Executive Officer in June 2005. He is a Chartered Civil Engineer. 
He progressed his career in T armac, subsequently holding a number of senior positions in Mowlem plc before becoming Chief Executive 
of Laing Construction plc and more latterly HBG Construction Ltd. 
John Samuel – Director, 54, joined the Board in May 2006 as Group Finance Director. He was previously Group Finance Director at Filtronic plc 
from 1991 until 2004 and subsequently Chief Financial Officer of Zetex plc from July 2004 until February 2006. He qualified as a Chartered 
Accountant in 1981 with Deloitte, Haskins and Sells before serving as a partner with Baker Tilly from 1987 until 1991. 
An organogram with the Directors’ areas of responsibility can be found on the Company’s website: www.renewholdings.com.
Brian May will retire by rotation at the 2010 Annual General Meeting (“AGM”) and will offer himself for reappointment. The Board recommends 
the reappointment of Brian May as it is considered that he brings considerable management and industry experience to the Group’s business.
The Articles of Association provide that each Director shall be indemnified by the Company against losses, costs and expenses he may 
sustain or incur in connection with the performance of his duties of office, to the fullest extent permitted by law. The Company has purchased 
and maintained throughout the year directors’ and officers’ liability insurance in respect of its Directors.
Directors’ interests
The beneficial interests of the Directors (and their immediate family members) in the shares of the Company and options for shares are set 
out on page 40. No Director has any interest in any other Group company. Details of the Directors’ remuneration and service contracts 
appear on page 39.
Disclosable interests
As at the date of this report, the Company has been notified of the following disclosable interests in the voting rights of the Company: 
      Number of  Percentage 
      ordinary  of issued 
      shares share capital
Gartmore Investment Limited      9,607,672 16.04%
Octopus Investments Nominees Limited     7,218,094 12.05%
Brewin Dolphin Limited      3,620,498 6.04%
Hargreave Hale Limited      2,581,900 4.31%
G Merrett      2,323,250 3.88%
Share capital
As at the date of this report, the total number of shares in issue (being ordinary shares of 10p each) is 59,898,927. 
During the year, the Company has not bought back any of its own shares nor issued any new share capital.
Disclosure of information to auditors
The Directors who held office at the date of approval of this Directors’ Report confirm the following:
 so far as each Director is aware, there is no relevant audit information of which the Group’s Auditors are unaware, and
  each Director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit 
information and to establish that the Group’s Auditors are aware of that information.
Auditors
Resolutions will be proposed at the forthcoming AGM to re-appoint KPMG Audit Plc as Auditors to the Group and to authorise the Directors 
to determine their remuneration.
Approval
The Board approved the Report of the Directors on 23 November 2010.
By Order of the Board
John Samuel FCA
Company Secretary
23 November 2010
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38
Directors’ remuneration report
The Directors present the Directors’ Remuneration Report (the “Remuneration Report”) for the financial year ended 30 September 2010.
As an AIM listed company, Renew is not required to prepare the Report in accordance with the Directors’ Remuneration Report Regulations 
2002 (the “Regulations”). However, the Directors recognise the importance and support the principles of the Regulations and would normally 
seek to follow them to the extent considered relevant for an AIM listed company. The Auditors are not required to report to the shareholders on the 
Directors’ Remuneration Report.
Remuneration Committee
Roy Harrison’s previous role as an Executive Director precludes him from being considered as independent under the Combined Code 
(the “Code”) nevertheless, the Committee operates with Roy Harrison as its Chairman and John Bishop, the sole independent Non-executive 
Director, also serving. The Committee held two meetings during the financial year to discuss remuneration arrangements. 
The Remuneration Committee’s terms of reference include:
(a)  to determine and agree with the Board the framework and policy for the remuneration packages, including bonuses, incentive payments 
and share options or share awards, of the Executive Directors and members of the Executive Management;
(b)   to review and approve the design of all share incentive plans and performance related pay schemes for approval by the Board and 
shareholders as applicable;
(c)  to determine targets and awards made under share incentive plans and performance related pay schemes;
(d) to determine the policy for, and scope of, pension arrangements for each Executive Director and other senior executives; and
(e)  to ensure contractual terms and payments made on termination are fair to the individual and the Company and that failure is not rewarded.
Non-executive Directors do not have any personal interest in the matters to be decided by the Committee other than as shareholders, nor any 
potential conflicts of interest arising from cross-directorships and no day-to-day involvement in the running of the Company. The Executive 
Directors and other senior personnel may be invited to attend meetings when appropriate to provide advice. However, no Director is present 
or takes part in discussions concerning his own remuneration.
Remuneration policy
The Company’s remuneration policy is that the remuneration package of the Executive Directors should be sufficiently competitive to attract, 
retain and motivate Directors to achieve the Company’s objectives, without making excessive payments. The remuneration and employment 
terms of the Executive Directors are determined by the Committee by comparison with salaries paid and terms agreed with Directors in 
similar companies in the same sector and of a similar size and after a review of the performance of the individual.
It is the aim of the Committee to reward Executive Directors competitively and on the broad principle that they should be in the range of 
median to upper-quartile of remuneration paid to senior management of comparable public companies. For guidance, the Committee refers 
to published survey data. The Board determines the terms and conditions of Non-executive Directors. 
There are four main elements to the remuneration packages of the Executive Directors and other senior executives:
 basic salary, including benefits;
 annual bonus awards;
 share option plans; and
 pension arrangements.
Basic salary
Basic salaries are reviewed annually by the Remuneration Committee and increased where the Committee believes that adjustments are 
appropriate to reflect performance, increased responsibilities and/or market conditions.
Other benefits for Executive Directors include car allowances and certain medical cover for the Director and immediate family. The Company 
also has a permanent health insurance policy to provide cover for the Executive Directors.
Annual bonus awards
The Company provides a bonus incentive scheme for Directors and senior executives of the operating companies, linked to the performance 
of the business for which they are responsible. All performance criteria are subject to approval by the Remuneration Committee before 
payment is made.
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www.renewholdings.com
Directors’ remuneration report
Share option plans
The Renew 2004 Executive Share Option Scheme (the “2004 ESOS”) was approved at an Extraordinary General Meeting (“EGM”) held on 
11 March 2004. During the year 1,312,319 options were granted under the 2004 ESOS to the Executive Directors. The performance criteria 
in respect of 940,242 previously granted options were not achieved and so those options lapsed during the year. There are 1,591,308 other 
options outstanding under the scheme of which 761,904 have vested. 
The Renew Savings Related Share Option Scheme (the “Renew SAYE”) was also approved at the EGM on 11 March 2004. There are no 
options outstanding under this scheme. The Company’s policy to grant options or awards under the above schemes is at the Remuneration 
Committee’s discretion as and when considered appropriate.
Pension arrangements
The Group has established individual stakeholder plans for each employee who elects to join into which the Group makes contributions; 
B May and J Samuel receive salary in lieu of pension contributions from the Company.
Following the adoption of new Articles of Association at the AGM on 28 January 2009, the restriction on the retirement age of the Executive 
Directors was removed. 
Service contracts and letters of appointment
The Company’s policy is for all of the Directors to have twelve month rolling service contracts that provide for a twelve month notice period. 
The fees of Non-executive Directors are determined by the full Board within the limits set out in the Articles of Association. The Non-executive 
Directors are not eligible for bonuses, pension benefits, share options or other benefits. The Directors are indemnified to the full extent 
permitted by Statute under the Articles of Association.
The service contracts of the Directors, who served during the year ended 30 September 2010, include the following terms:
      Unexpired Notice 
    Executive/ Date of terms  period 
Directors    Non-executive contract (months)  (months)
J Bishop    Non-executive 1 September 2008 Rolling one year 12
R Harrison    Non-executive 1 February 2009 Rolling one year 12
B May     Executive 20 June 2005 Rolling one year 12
J Samuel    Executive 17 May 2006 Rolling one year 12
Directors’ remuneration
Information is provided below for Directors who served during the financial year and as at 30 September 2010:
      Total Total 
   Salary/   emoluments emoluments 
   fees Bonuses Benefits 2010 2009 
  Notes £000 £000 £000 £000 £000
Executive Directors
B May  1,2,3,4 287 148 57 492 472
J Samuel  1,2,3,4 221 114 45 380 318
        
       872 790
Non-executive Directors
R Harrison   55 — — 55 55
J Bishop   30 — — 30 30
        
       957 875
        
Notes:
1. The highest paid Director for 2010 and 2009 was B May who received emoluments of £492,000 (2009: £472,000). 
2. Benefits include car allowances and certain medical cover for the Director and immediate family.
3. B May and J Samuel received payments in lieu of Company pension contributions, which are paid through payroll and taxed as salary and are included in Benefits above.
4. Bonuses were earned by B May and J Samuel during the current financial year and will be paid in the year ending 30 September 2011.
 
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Directors’ remuneration report continued
Directors’ share options
Options have been granted to B May and J Samuel under the Renew 2004 ESOS as set out in the table below. During the year 1,312,319 
options were granted under the 2004 ESOS to the Executive Directors. The performance criteria in respect of 940,242 previously granted 
options were not achieved and so those options lapsed during the year. There are 1,591,308 other options outstanding under the scheme of 
which 761,904 have vested. The market price of the Company’s shares at 30 September 2010 was 33p and the range of market prices during 
the year was between 30p and 40.5p.
Information is provided below for Directors who served during the financial year and as at 30 September 2010:
      Cumulative Total
       30 September 1 October 
    2010 Award 2009 Award 2006 Award  2010 2009
B May   831,884 525,963 476,190 1,834,037 1,598,411
J Samuel   480,435 303,440 285,714 1,069,589 933,148
Date of award   25 November 2009 26 November 2008 7 June 2006
Exercise price (£)   0.345 0.545 0.525
Earliest exercise date   25 November 2012 26 November 2011 7 June 2009
Expiry of exercise period   25 November 2019 26 November 2018 7 June 2016
Performance criteria for the vesting of the share options is set out in Note 20 to the financial statements.
Directors’ share interests
Those Directors serving at the end of the year and their immediate families had interests in the share capital of the Company at 30 September 2010 
as follows:
      Ordinary Shares  
      of £0.10 each
      30 September  30 September 
      2010 2009
J Bishop      10,000 10,000
R Harrison      60,000 60,000
B May      355,000 305,000
J Samuel      210,000 210,000
Directors’ pension information
No Director had pension entitlements under the Company’s defined benefit pension scheme.
Approval
The Directors’ Remuneration Report was approved by the Board on 23 November 2010 and signed on its behalf by:
R J Harrison OBE
Chairman
23 November 2010
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Corporate governance
Corporate governance
As an AIM listed company, Renew is not required to follow the provisions of the Combined Code, as set out in the Financial Services 
Authority’s Listing Rules. The Directors, however recognise the importance of, and accordingly support, the principles of good corporate 
governance as contained within the Combined Code. The Directors normally seek to follow the Code to the extent considered relevant for 
an AIM listed company but are unable to achieve compliance with the Code in a number of areas this year, primarily because of the 
lack of independent Non-executive Directors. These matters are explained in further detail in the sections below.
The Board of Directors
The Board currently comprises the Chief Executive Officer, the Non-executive Chairman, one Executive Director and one independent 
Non-executive Director. Brief biographies of the Directors are given on pages 36 and 37.
As the Company has only had one independent Non-executive Director within the meaning of the Code during the year, it has not been 
compliant with the requirement of the Code that more than half of the Board should be comprised of independent Non-executive Directors. 
The composition of the Board is reviewed regularly. Appropriate training, briefings and induction are available to all Directors on appointment 
and subsequently as necessary, taking into account existing qualifications and experience. New Directors are subject to election by 
shareholders at the first AGM after their appointment. 
The Board met formally ten times in the year with all Directors in attendance, plus Committee meetings dealing with the daily business of the 
Company being held as necessary. The Board receives written and oral reports from the Executive Directors ensuring matters are considered 
fully and enabling Directors to discharge their duties properly. There is a formal schedule of matters reserved for the Board’s decision 
ensuring the maintenance of control over strategic, financial and operational matters. 
In addition, procedures are in place for the Directors to seek independent professional advice, if necessary, at the Company’s expense.
Board Committees
R Harrison’s previous role as an Executive Director prevents him from being considered as independent under the Combined Code 2003. 
Nevertheless, the Board operates with a number of Board Committees. J Bishop, the sole independent Non-executive Director, acts as 
Chairman of the Audit Committee and R Harrison acts as Chairman of both the Remuneration and Nominations Committees. 
The Board delegates clearly defined powers to its Audit, Remuneration and Nominations Committees. Each of the Board’s Committees has 
carefully drafted terms of reference. 
The Remuneration Committee, which comprises R Harrison and J Bishop, determines and agrees with the Board the framework and policy 
of executive remuneration packages, including bonuses, incentive payments, share options or awards and pension arrangements. Further 
information concerning the Remuneration Committee is set out in the Directors’ Remuneration Report on pages 38 to 40. 
The Nominations Committee, which comprises the entire Board, monitors the composition of the Board and recommends the appointment of 
new Directors. The Nominations Committee, with all Directors present, has held two meetings during the year to discuss nomination matters.
The Nominations Committee terms of reference include:
(a) to review the structure, size and composition of the Board;
(b) to consider succession planning for Directors and senior executives;
(c) to identify and nominate, for approval by the Board, suitable candidates to fill Board vacancies; and
(d)  to make recommendations to the Board on the contents of letters of appointment, Directors’ duties, re-appointment or re-election of 
Directors upon conclusion of a specified term or retirement by rotation.
The Audit Committee has held three meetings to consider Audit Committee business. The Audit Committee consists of J Bishop and 
R Harrison. The Executive Directors are invited to attend Audit Committee meetings but at least two meetings are held each year with the 
external Auditors at which the Executive Directors are not present. The Audit Committee considers the adequacy and effectiveness of the risk 
management and control systems of the Group, and reports the results to the Board. It reviews the scope and results of the external audit, its 
cost effectiveness and the objectivity of the Auditors. The Audit Committee monitors the non-audit work performed by the Auditors to help 
ensure that the independence of the Auditors is maintained. The Audit Committee also reviews the interim statement, the preliminary 
announcement and accounting policies. 
The Board forms a General Purposes Committee from time to time as it deems necessary. This Committee is constituted by the two Executive 
Directors and considers individual business matters which have been specifically delegated to it by the Board.
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42
Internal controls
Throughout the financial year ended 30 September 2010 and up to the date of approval of the Annual Report and Accounts, the Group has 
fully complied with the relevant provisions of the Code and the T urnbull guidance. The Directors acknowledge that they have overall responsibility 
for the Group’s system of internal control and for reviewing and monitoring its effectiveness. The system of internal control is designed to 
manage and mitigate, rather than eliminate, the risks to which the Group is exposed and therefore provides a reasonable, but not 
absolute, assurance against a company failing to meet its business objectives or against material misstatement or loss. Consequently, the 
Board confirms that there is an ongoing process for identifying, evaluating and managing significant risks faced by the Group and that it is 
regularly reviewed by the Board. 
The Group operates a risk management process, which is embedded in normal management and governance processes. There is a system 
of self-examination of risk areas and controls by subsidiaries and departments within the Group. Where significant risks are identified, the 
probability of those risks occurring, their potential impact and the plans for managing and mitigating each of those risks is reported. The 
Group operates a series of controls which include the annual strategic planning and budgeting process, short-term cash monitoring achieved 
by means of weekly forecasts which are compared against budget and previous forecasts, clearly defined capital investment guidelines and 
levels of authority and a clear organisational structure within which individuals’ responsibilities are identified and monitored. These results and 
processes are monitored, updated, reviewed and considered by the Board. The Group has established a series of minimum standards in a 
number of financial and operational areas with which each business within the Group must comply. Group management monitors and reviews 
compliance with these requirements on a periodic basis. Due to the size and nature of the Group, the Board does not consider that a separate 
internal audit function is necessary. For the last four years and including 2010, the Group has carried out a programme of internal audit 
conducted by the Group Commercial Director and by members of the various subsidiaries’ finance teams. This system of peer review 
promotes best practice as well as ensuring that Group minimum requirements as to procedures and internal controls are being complied with. 
The reports from these internal audits are made available both to the Board and to the external Auditors.
Going concern
The Directors have reviewed the budgets and forecasts prepared by the Group and its trading subsidiaries and consider that at the time of approving 
the financial statements, there is a reasonable expectation that the Company and the Group have adequate resources to continue in operational 
existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Directors’ remuneration
The Company’s policy on the remuneration of Executive Directors, and information relating to the Directors’ remuneration and their interests 
in share options, is included in the Directors’ Remuneration Report.
Directors’ and officers’ indemnity
The Articles of Association provide that each Director or other officer or Auditor of the Company shall be indemnified by the Company against 
losses, costs and expenses he may sustain or incur in connection with the performance of his duties of office, to the fullest extent permitted by law.
Shareholder relationships
Members of the Board have dialogue with individual shareholders during the year. In addition to the Annual and Interim Report and Accounts, 
the Chairman addresses shareholders at the AGM and invites questions to any members of the Board. 
The AGM is normally attended by all Directors and provides an opportunity for communication with those shareholders attending. Notice of 
the AGM is given to shareholders at least 21 days in advance and separate resolutions are proposed on each substantially separate issue. 
Where resolutions at the AGM are dealt with by show of hands, the results of proxy votes for and against are still announced. 
Financial and other information about the Group is available on the Company’s website: www.renewholdings.com, from which shareholders 
can also access their shareholding details via a link to the website of Capita Registrars plc.
Annual General Meeting
The AGM will be held on 26 January 2011, the Notice for which is set out on page 83. The Notice contains special business relating to the 
renewal of the Board’s power to allot equity shares. Brief details of the purpose and effect of the proposed resolutions are set out in the 
Notice of AGM and the notes thereto on page 84. 
Shareholders should complete the proxy form accompanying this document in accordance with the notes contained in the Notice of AGM.
Approval
The Board approved the Corporate Governance Report on 23 November 2010.
By Order of the Board
John Samuel
Company Secretary
23 November 2010
Corporate governance continued
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Statement of directors’ 
responsibilities
in respect of the annual report and the financial statements
Statement of directors’ responsibilities
The directors are responsible for preparing the Annual Report and the group and parent company financial statements in accordance with 
applicable law and regulations.
Company law requires the directors to prepare group and parent company financial statements for each financial year. As required by the 
AIM Rules of the London Stock Exchange they are required to prepare the group financial statements in accordance with IFRSs as adopted 
by the EU and applicable law and have elected to prepare the parent company financial statements in accordance with UK Accounting 
Standards and applicable law (UK Generally Accepted Accounting Practice).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the 
state of affairs of the group and parent company and of their profit or loss for that period. In preparing each of the group and parent company 
financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
 for the Group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU;
  for the parent company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any 
material departures disclosed and explained in the financial statements; and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the parent company 
will continue in business. 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that 
its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably 
open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. 
Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 
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to the members of Renew Holdings plc
Independent auditors’ report
We have audited the financial statements of Renew Holdings plc for the year ended 30 September 2010 set out on pages 45 to 80. The 
financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and International 
Financial Reporting Standards (IFRSs) as adopted by the EU. The financial reporting framework that has been applied in the preparation of 
the parent company financial statements is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 
an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 43, the directors are responsible for the preparation 
of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements 
in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with 
the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s web-site at www.frc.org.uk/apb/scope/UKNP
Opinion on financial statements
In our opinion:
  the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 September 2010 
and of the group’s profit for the year then ended;
 the group financial statements have been properly prepared in accordance with IFRSs as adopted by the EU;
 the parent company financial statements have been properly prepared in accordance with UK Generally Accepted Accounting Practice;
 the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent 
with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
 the parent company financial statements are not in agreement with the accounting records and returns; or
 certain disclosures of directors’ remuneration specified by law are not made; or
 we have not received all the information and explanations we require for our audit.
Chris Hearld (Senior Statutory Auditor)
For and on behalf of KPMG Audit Plc, Statutory Auditor
Chartered Accountants
1 The Embankment
Neville Street
Leeds
LS1 4DW
23 November 2010 
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Accounts
for the year ended 30 September
Group income statement
   Before Exceptional  Before Exceptional  
   exceptional items and  exceptional items and  
   items and amortisation  items and amortisation  
   amortisation of intangible  amortisation of intangible  
   of intangible assets  of intangible assets  
   assets (see Note 3) Total assets (see Note 3) Total 
   2010 2010 2010 2009 2009 2009 
  Note £000 £000 £000 £000 £000 £000
Group revenue from 
continuing activities 2 290,395  — 290,395 316,648  — 316,648
Cost of sales   (260,804)  — (260,804) (282,638)  — (282,638)
       
Gross profit  29,591  — 29,591 34,010  — 34,010
Administrative expenses   (25,073) (571) (25,644) (29,423) (4,375) (33,798)
       
Operating profit 3 4,518 (571) 3,947 4,587 (4,375) 212
Finance income 4 205  — 205 939  — 939
Finance costs 4 (41) — (41) (46) — (46)
Other finance (charges)/income –  
defined benefit pension scheme 4 (119)  — (119) 65  — 65
       
Profit before income tax  4,563 (571) 3,992 5,545 (4,375) 1,170
Income tax expense 6 (1,410) 154 (1,256) (1,877) 1,085 (792)
       
Profit for the year attributable 
to equity holders of the 
parent company  3,153 (417) 2,736 3,668 (3,290) 378
       
Basic earnings per share 8   4.57p   0.63p
Diluted earnings per share 8   4.37p   0.62p
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Group statement of comprehensive income
for the year ended 30 September
       2010 2009 
      Note £000 £000
Profit for the year attributable to equity holders of the parent company   2,736 378
Exchange movement in reserves     13 622
Movement in actuarial deficit    24 1,164 (2,895)
Movement on deferred tax relating to the defined benefit pension scheme   (338) 811
        
Total comprehensive income/(expense) for the year attributable to      
equity holders of the parent company     3,575 (1,084)
        
  Called up Share Capital Cumulative Share based Retained T otal 
  share premium redemption translation payments earnings equity 
  capital account reserve adjustment reserve   
  £000 £000 £000 £000 £000 £000 £000
At 1 October 2008 5,990  5,893  3,896  424  233  (2,155) 14,281 
Transfer from income statement 
for the period      378 378
Dividends paid      (1,797) (1,797)
Recognition of share 
based payments     (71)  (71)
Exchange differences    622    622
Actuarial loss recognised in 
pension scheme      (2,895) (2,895)
Movement on deferred tax relating 
to the pension scheme      811 811
       
At 30 September 2009 5,990  5,893  3,896  1,046  162  (5,658) 11,329 
Transfer from income statement 
for the period       2,736 2,736
Dividends paid      (1,797) (1,797)
Recognition of share 
based payments     55  55
Exchange differences    13   13
Actuarial gain recognised in 
pension scheme      1,164 1,164
Movement on deferred tax relating 
to the pension scheme      (338) (338)
       
At 30 September 2010 5,990  5,893  3,896  1,059  217  (3,893) 13,162 
       
for the year ended 30 September
Group statement of changes in equity
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Accounts
Group balance sheet
at 30 September
       2010 2009 
      Note £000 £000
Non-current assets      
Intangible assets   – goodwill    9 9,558 9,558
   – other     9 154 474
Property, plant and equipment    10 4,690 5,368
Retirement benefit assets     24 1,060  —
Deferred tax assets     6 3,283 4,097
        
      18,745 19,497
        
Current assets      
Inventories     11 8,570 8,082
Trade and other receivables    12 69,997 67,249
Current tax assets      169 44
Cash and cash equivalents     14 16,376 14,863
        
      95,112 90,238
        
        
Total assets      113,857 109,735
        
Non-current liabilities
Obligations under finance leases    17  — (6)
Retirement benefit obligations    24  — (2,351)
Deferred tax liabilities     6 (424) (233)
Provisions     18 (520) (680)
        
      (944) (3,270)
        
Current liabilities      
Borrowings     16 (131) (263)
Trade and other payables     15 (98,175) (93,612)
Obligations under finance leases    17 (6) (21)
Current tax liabilities      (607) (121)
Provisions     18 (832) (1,119)
        
      (99,751) (95,136)
        
        
Total liabilities      (100,695) (98,406)
        
        
Net assets      13,162 11,329
        
      
Share capital     20 5,990 5,990
Share premium account     21 5,893 5,893
Capital redemption reserve     21 3,896 3,896
Cumulative translation adjustment    21 1,059 1,046
Share based payments reserve    21 217 162
Retained earnings     21 (3,893) (5,658)
        
Total equity      13,162 11,329
        
Approved by the Board and signed on its behalf by: 
R J Harrison OBE
Chairman 
23 November 2010
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for the year ended 30 September
Group cashflow statement
       2010 2009 
       £000 £000
Profit for the year      2,736 378
Amortisation of intangible assets     320 309
Depreciation      1,135 1,497
Profit on sale of property, plant and equipment     (22) (71)
Increase in inventories      (377) (935)
(Increase)/decrease in receivables     (2,674) 21,646
Increase/(decrease) in payables     3,945 (30,165)
Current service cost in respect of defined benefit pension scheme    85 70
Cash contribution to defined benefit pension scheme    (2,451) (2,028)
Expense/(income) in respect of share options     55 (71)
Financial income      (205) (1,004)
Financial expenses      160 46
Interest paid      (41) (46)
Income taxes (paid)/received     (229) 323
Income tax expense      1,256 792
        
Net cash inflow/(outflow) from operating activities    3,693 (9,259)
        
Investing activities
Interest received      205 939
Proceeds on disposal of property, plant and equipment    125 399
Purchases of property, plant and equipment     (560) (1,606)
Acquisition of subsidiaries net of cash acquired     — (2,260)
        
Net cash outflow from investing activities     (230) (2,528)
        
Financing activities
Dividends paid      (1,797) (1,797)
Repayments of obligations under finance leases     (21) (104)
        
Net cash outflow from financing activities     (1,818) (1,901)
        
Net increase/(decrease) in cash and cash equivalents    1,645 (13,688)
Cash and cash equivalents at beginning of year     14,600 28,179
Effect of foreign exchange rate changes on cash and cash equivalents    —  109
        
Cash and cash equivalents at end of year     16,245 14,600
        
Bank balances and cash      16,376 14,863
Borrowings      (131) (263)
        
      16,245 14,600
        
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Accounts
Notes to the accounts
1 Accounting policies 
Presentation of consolidated financial statements
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as 
adopted by the EU (“adopted IFRS”). The financial statements are presented in sterling since this is the currency in which the majority of the 
Group’s transactions are denominated.
Accounting estimates and judgements
In the preparation of these financial statements the Board has made certain judgements and estimates which impact the measurement of 
various assets and liabilities in the Group balance sheet, the value of transactions recorded in the Group income statement and the 
movements in equity as shown in the Group statement of changes in equity. The actual financial outcomes may ultimately differ from that 
which is indicated by these judgements and estimates. 
Estimates and judgements are reviewed by management and the Board on an ongoing basis and changes which may arise in them are 
reflected in the financial statements for the period in which such changes are made.
The Board has determined that the following areas are those in which estimates and judgements have been made and where material 
impacts could arise in the financial statements were such estimates and judgements to be varied.
a) Accounting for construction contracts in accordance with IAS 11 “Construction Contracts”
IAS 11 requires management to estimate the total expected costs on a contract and the stage of contract completion in order to determine 
both the revenue and profit to be recognised in an accounting period. The Group has control and review procedures in place to monitor, and 
evaluate regularly, the estimates being made to ensure that they are consistent and appropriate. This includes reviewing the independent 
certification of the value of work done, the progress of work against contracted timescales and the costs incurred against plan. 
b) Impairment of goodwill in accordance with IAS 36 “Impairment of Assets”
In accordance with IAS 36, goodwill is tested annually for impairment by comparing the carrying value of goodwill with the recoverable 
amount which is determined by an estimation of the value in use of the related cash generating unit to which the goodwill is attributed. 
The calculation of the value in use requires estimates to be made of the future cashflows of the cash generating unit and the timescale 
over which they will arise. Estimated growth rates and discount factors are also used in the calculation to estimate the net present value of 
the cashflows. More information is given in Note 9 to these financial statements. 
c) Accounting for the defined benefit pension scheme in accordance with IAS 19 “Employee Benefits”
The independent actuary to the Lovell Pension Scheme calculates the Group’s liability in respect of the defined benefit scheme. The actuary 
makes assumptions as to discount rates, salary escalations, expected returns on scheme assets, future pension increases, mortality rates 
applicable to members and future rates of inflation. These assumptions are made under the Board’s direction. The Board determines the 
appropriateness of these assumptions by benchmarking them against those used by other schemes and by taking advice from the 
independent actuary. If the actual experience of the scheme is different from the assumptions used then the pension liability may differ 
from that shown in these financial statements. More information is given in Note 24 to these financial statements.
d) Accounting for provisions in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”
The Group has made provisions against two specific areas where the Board has determined that liabilities exist but where judgements have 
to be made as to the quantification of such liabilities. A provision has been made for onerous lease contracts in respect of property leases 
where the Board has determined that the expected economic benefits to be derived from the leases are less than the unavoidable cost of 
meeting the Group’s obligations under the lease contract. This could arise where the Group is the head lessee for a property lease contract 
where the property is not used by the Group and where the Group has not been able to sublet the property or has only been able to do so 
on terms which are less favourable than those of the head lease. 
The Group has received the decision from the Office of Fair Trading (“OFT”) following its investigation into tender activities in the construction 
sector. The OFT’s decision was that a fine of £0.5m will be levied on Allenbuild, one of the Group’s subsidiaries, and that a fine of £3.0m will 
be levied on Bullock Construction Limited (“Bullock”), one of the Group’s former subsidiaries. The OFT holds that the Company is jointly and 
severally liable for both of these fines. Having taken legal advice, the Company has appealed against the OFT’s decision on a number of 
grounds. After considering the legal advice, the Board believes that the Company has no liability in respect of the Bullock fine. The Group has 
provided a sum of £0.5m as an exceptional charge in respect of the Allenbuild fine. Were the Company’s appeals against the Bullock fine not 
to be upheld then the Group may have a greater liability in respect of this matter. 
e) Accounting for deferred taxation in accordance with IAS 12 “Income Taxes” 
The Group provides for deferred taxation using the balance sheet liability method. Deferred tax assets are recognised in respect of 
tax losses where the Directors believe that it is probable that future profits will be relieved by the benefit of tax losses brought forward. 
The Board considers the likely utilisation of such losses by reviewing budgets and medium term plans for each taxable entity within the 
Group. If the actual profits earned by the Group’s taxable entities is different from the budgets and forecasts used then the value of such 
deferred tax assets may differ from that shown in these financial statements.
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Notes to the accounts continued
1 Accounting policies continued
(i) Basis of accounting and preparation 
The accounts have been prepared on the going concern basis and in accordance with applicable accounting standards under the historical 
cost convention. In determining that the going concern basis is appropriate the Directors have reviewed budgets, including cashflow forecasts, 
and concluded that the Group has adequate cash resources to continue trading for the foreseeable future.
The consolidated financial statements have been prepared in accordance with IFRS as adopted for use in the EU. The Group has applied all 
accounting standards and interpretations issued by the IASB and International Financial Reporting Committee relevant to its operations and 
which are effective in respect of these financial statements. 
In the current year the Group has adopted the following new accounting standards:
IAS 1* (revised) “Presentation of financial statements – A revised presentation”.
IFRS 8* “Operating segments”.
IFRS 2* (amendment) “Share based payment – Vesting conditions and cancellations”. 
IAS 23* (revised) “Borrowing costs”.
IFRIC 14* “Limit on a Defined Benefit Asset”.
IFRIC 15* “Agreements for construction of real estate”.
* These standards and interpretations have been adopted by the EU.
These amendments have not had a material impact on the Group’s operations.
New standards and interpretations not applied:
IAS 27 (amendment) “Consolidated and separate financial statements”.
IAS 39 (amendment) “Eligible hedged items”.
IAS 24 (revised) “Related Party Disclosure”.
The application of these standards and interpretations is not expected to have a material impact on the Group’s reported financial 
performance or position. 
The Group has elected not to adopt any standards or interpretations early.
A summary of the more important Group accounting policies, which have been applied consistently, is set out below:
(ii) Basis of consolidation
The Group accounts consolidate the accounts of the Company and its subsidiary undertakings. The results and net assets of undertakings 
acquired are included in the Group income statement and balance sheet using the acquisition method of accounting. The results of 
undertakings acquired/disposed of are included from the date the Group obtains/loses control.
(iii) Revenue
Revenue, which excludes intra-group revenue and Value Added Tax, comprises:
– value of work executed during the year on construction contracts based on monthly valuations; and
– sales of developments and land which are recorded upon legal completion.
(iv) Construction contracts
Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the 
extent that it is probable that they will result in revenue and can be measured reliably. Contract revenue and expenses are recognised in 
accordance with the stage of completion of the contract. The stage of completion is determined by surveys of work performed. Contract costs 
incurred that relate to future activities are deferred and recognised as amounts recoverable on contracts. When it is probable that the total 
contract costs will exceed contract revenue, the expected loss is recognised as an expense immediately. To the extent that progress billings 
exceed costs incurred plus recognised profits (less recognised losses) they are recognised as amounts due to construction contract customers.
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1 Accounting policies continued
(v) Segment reporting
The operating segments are based on the components that the Board, the Group’s principal decision-making body (the CODM), monitors in 
making decisions about operating matters. Such components are identified on the basis of information that is provided internally in the form 
of monthly management account reporting, budgets and forecasts to formulate allocation of resource to segments and assess performance. 
Revenue from reportable segments is measured on a basis consistent with the income statement. Revenue is principally generated from 
within the UK, the Group’s country of domicile. Segment results show the contribution directly attributable to each segment in arriving at the 
Group’s operating profit. Segment assets and liabilities comprise those assets and liabilities directly attributable to each segment. Group 
eliminations represent such consolidation adjustments that are necessary to determine the Group’s assets and liabilities.
(vi) Intangible assets
a)  Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets, 
liabilities and contingent liabilities of a subsidiary, associate or jointly-controlled entity at the date of acquisition. Goodwill is recognised as an asset 
and is tested for impairment annually, or on such other occasions that events or changes in circumstances indicate that it might be impaired.
On disposal of a subsidiary undertaking, the attributable amount of unamortised goodwill which has not been subject to impairment is 
included in the determination of the profit or loss on disposal. 
b)  Other intangible assets are stated at cost less accumulated amo rtisation and impairment losses. The cost of intangible assets is amortised 
over their expected useful lives. These intangibles relate primarily to framework agreements and are amortised over the lives of the agreements.
(vii) Property, plant and equipment 
Property, plant and equipment are recorded at cost less provision for impairment if required. 
Depreciation is provided on all property, plant and equipment, other than freehold land. Provision is made at rates calculated to write off the 
cost of each asset, less estimated residual value, evenly over its expected useful life as follows:
Group occupied property   
Freehold land    – no depreciation charge
Long leasehold land  – shorter of fifty years and 
and buildings      period of lease
Plant and vehicles   – three to ten years
Office equipment   – two to seven years
(viii) Impairments
Goodwill arising on acquisitions and other assets that have an indefinite useful life and are therefore not subject to amortisation, are reviewed 
at least annually for impairment. Other intangible assets and property, plant and equipment are reviewed for impairment whenever there is 
any indication that the carrying amount of the asset may not be recoverable. If the recoverable amount of any asset is less than its carrying 
amount, a loss on impairment is recognised. Recoverable amount is the higher of the fair value of the asset less any costs which would be 
incurred in selling the asset and its value in use. Value in use is assessed by discounting the estimated future cashflows that the asset is 
expected to generate. For this purpose, assets are grouped into cash generating units which represent the lowest level for which there are 
separately identifiable cashflows. Impairment losses in respect of goodwill are not reversed in future accounting periods. Reversals of other 
impairment losses are recognised in income when they arise.
(ix) Inventories
Inventories comprise developments, land held for development and raw materials and are stated at the lower of cost and net realisable value. Cost 
includes appropriate attributable overheads and excludes interest. Where necessary, provision is made for obsolete slow moving and defective inventories.
(x) Trade receivables
Trade receivables do not carry any interest and are initially recognised at their fair value and then at amortised cost.
(xi) Trade payables
Trade payables on normal terms are not interest bearing and are initially recognised at their fair value and then at amortised cost.
(xii) Cash and cash equivalents
Cash and cash equivalents in the cashflow statement comprise cash at bank and in hand, including bank deposits with original maturities of 
less than three months, net of bank overdrafts. Bank overdrafts are included within borrowings within current liabilities in the balance sheet. 
(xiii) Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event and where it is probable 
that an outflow will be required to settle that obligation and where the amount can be reliably estimated.
(xiv) Leasing commitments
Assets held under finance leases, where substantially all the benefits and risks of ownership of an asset have been transferred to the Group, 
are capitalised and are depreciated in accordance with the depreciation policy for the relevant class of asset or the lease term if shorter. 
The interest element of the rental obligation is charged to the income statement and represents a constant proportion of the balance of capital 
repayments outstanding. Rentals under operating leases are charged to the income statement on a straight-line basis over the term of the lease.
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Notes to the accounts continued
1 Accounting policies continued
(xv) Defined benefit pension scheme
The pension scheme assets are measured using market values. Pension scheme liabilities are measured using the projected unit actuarial 
method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. Any 
increase in the present value of liabilities within the Group’s defined benefit scheme expected to arise from employee service in the period 
is charged to operating profit. The expected return on the scheme’s assets and the increase during the period in the present value of the 
scheme’s liabilities arising from the passage of time are included in other finance income. Actuarial gains and losses are recognised in the 
Group statement of comprehensive income. Pension scheme surpluses, to the extent they are considered recoverable, or deficits are 
recognised in full and presented on the face of the Group balance sheet.
(xvi) Defined contribution pension plans
Contributions to the Group’s stakeholder pension plans are charged to the income statement as incurred.
(xvii) Taxation
The tax charge is composed of current tax and deferred tax, calculated using tax rates that have been enacted or substantively enacted by 
the balance sheet date. Current tax and deferred tax are charged or credited to the income statement, except when they relate to items 
charged or credited directly to equity, in which case the relevant tax is also dealt with in equity. 
Current tax is based on the profit for the year. Deferred tax is provided in full, using the liability method, on temporary differences arising 
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax on such assets and 
liabilities is not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of other 
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary 
differences can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends 
to settle its current assets and liabilities on a net basis.
(xviii) Foreign currencies 
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated 
in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. The income statements of overseas subsidiary 
undertakings are translated at the average rate of exchange ruling throughout the financial year. The balance sheets of overseas subsidiary 
undertakings are translated at the rate of exchange ruling at the balance sheet date. Exchange differences arising from this policy and arising 
on the retranslation of the opening net assets is taken directly to reserves. All other exchange differences are taken to the income statement.
(xix) Financial instruments
Financial assets are divided into the following categories: trade receivables and financial assets at fair value. The Board assigns financial 
assets to each category on initial recognition dependant on the purpose for which the asset was acquired. The categorisation of these 
assets is reconsidered at each reporting date at which a choice of categorisation or accounting treatment is available. All financial assets 
are recognised whenever the Group becomes party to the contractual provisions of the financial instrument. All such assets are initially 
recognised at fair value. Derecognition of such assets occurs when the Group’s right to receive cashflows from the asset ceases or the rights 
and rewards of ownership have been transferred. All such assets are reviewed for impairment at least annually. Interest and other cashflows 
which arise from holding a financial asset is recognised in the income statement in accordance with IAS 39. Financial assets at fair value 
include assets classified as held for trading, and changes in fair value are recognised through the income statement. Trade receivables are 
non-derivative financial assets with expected receipts which are not quoted in an active market and they arise when the Group provides 
goods or services. A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is 
impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on 
the estimated future cashflows of that asset. An impairment loss in respect of a financial asset measured at amortised cost is calculated as 
the difference between its carrying amount, and the present value of the estimated cashflows discounted at the original effective interest rate. 
All impairment losses are recognised in the income statement. Financial liabilities are recognised when the Group becomes a party to the 
contractual provisions of the financial instrument. All interest related charges are recognised as an expense in the income statement. Bank 
loans and hire purchase liabilities are entered into to provide financing for the Group’s operations and are recognised as funds are received. 
Financial liabilities are measured at amortised cost.
(xx) Share based payments
IFRS 2 “Share Based Payment” requires a fair value to be established for any equity settled share based payments. Fair value has been 
independently measured using a Black Scholes valuation model. The fair value determined at the grant date of the equity settled share based 
payments is expensed on a straight-line basis over the vesting period based on the Directors’ estimate of shares that will eventually vest.
(xxi) Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS is calculated by dividing the profit or 
loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding in the period. 
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary 
shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees.
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1 Accounting policies continued
(xxii) Rental income
Rental income from property is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives 
granted are recognised as an integral part of the total rental income, over the term of the lease.
(xxiii) Finance income and expense
Finance income comprises interest income on funds invested and gains on hedging instruments that are recognised in income or expense. 
Interest income is recognised as it accrues in income or expense, using the effective interest method. 
Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions and losses on hedging instruments 
that are recognised in income or expense. All borrowing costs are recognised in income or expense using the effective interest method.
2 Segmental analysis
The Chief Operating Decision Maker (“CODM”) is responsible for the overall resource allocation and performance assessment of the Group. 
The Board approves major capital expenditure and its authority is required prior to the Group entering into any development projects. The 
Board assesses the performance of the Group and its progress against the strategic plan through monitoring of key performance indicators. 
The Board also determines key financing decisions such as raising equity, all loan or bank borrowing arrangements and the granting of 
security over the Group’s assets. As such the Group considers that the Board is the CODM.
Operating segments have been identified based on the internal reporting information provided to the CODM. From such information 
Specialist Building and Specialist Engineering have been determined to represent operating segments. Following the identification of the 
operating segments the Group has assessed the similarity of the characteristics of the operating segments. Given the different performance 
targets and markets operated in within each operating segment it is not appropriate to aggregate the operating segments for reporting 
purposes and therefore both of the identified operating segments are disclosed as reportable segments. The information received by the 
CODM shows segment results before exceptional items. No customer represents more than ten percent of the Group’s revenue.
These segments are:
Specialist Building, which comprises the Group’s building activities which are characterised by the use of a supply chain of subcontractors to 
carry out building works under the control of the Group as principal contractor and:
Specialist Engineering, which comprises the Group’s engineering activities which are characterised by the use of the Group’s skilled engineering 
workforce, supplemented by specialist subcontractors where appropriate, in a range of civil, mechanical and electrical engineering applications.
(a) Business analysis
Revenue is analysed as follows:
      2010 2009 
      £000 £000
Specialist Building      163,134 202,358
Specialist Engineering      127,382 114,779
Inter segment revenue      (191) (1,024)
        
Segment revenue      290,325 316,113
Central activities      70 535
        
Group revenue from continuing operations     290,395 316,648
        
Analysis of operating profit
  Before   Before  
  exceptional Exceptional  exceptional Exceptional  
  items and items and  items and items and  
  amortisation amortisation  amortisation amortisation  
  of intangible of intangible  of intangible of intangible  
   assets assets  assets assets  
  2010 2010 2010 2009 2009 2009 
  £000 £000 £000 £000 £000 £000
Specialist Building  1,836  — 1,836 2,525 (2,300) 225
Specialist Engineering  4,160  — 4,160 4,008 (1,446) 2,562
       
Segment operating profit 5,996  — 5,996 6,533 (3,746) 2,787
Central activities  (1,478) (571) (2,049) (1,946) (629) (2,575)
       
Operating profit  4,518 (571) 3,947 4,587 (4,375) 212
Net financing income  45  — 45 958  — 958
       
Profit on ordinary activities 
before income tax  4,563 (571) 3,992 5,545 (4,375) 1,170
       
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Notes to the accounts continued
2 Segmental analysis continued
Balance sheet analysis of business segments
  2010  2009
  Assets Liabilities Net assets Assets Liabilities Net assets 
  £000 £000 £000 £000 £000 £000
Specialist Building  122,146 (141,181) (19,035) 120,832 (139,361) (18,529)
Specialist Engineering  43,180 (35,908) 7,272 44,440 (37,096) 7,344
Central activities  256,848 (231,923) 24,925 263,520 (241,006) 22,514
Group eliminations  (308,317) 308,317  — (319,057) 319,057  —
       
Group net assets  113,857 (100,695) 13,162 109,735 (98,406) 11,329
       
Other information
  2010  2009
  Capital   Capital  
  additions Depreciation Amortisation additions Depreciation Amortisation 
  £000 £000 £000 £000 £000 £000
Specialist Building  266 236  — 106 345  —
Specialist Engineering  294 871  — 796 1,104  —
Central activities   — 28 320 704 48 309
       
   560 1,135 320 1,606 1,497 309
       
(b) Geographical analysis
Revenue is analysed as follows: 
      2010 2009 
      £000 £000
UK       290,395 316,127
USA      — 521
        
Group revenue from continuing operations     290,395 316,648
        
Non-current asset analysis by geographical segments
      Assets Assets 
      £000 £000
UK       18,745 19,497
USA      — —
        
Group non-current assets     18,745 19,497
        
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3 Operating profit 
      2010 2009 
      £000 £000
Operating profit is arrived at after charging/(crediting)     
Auditors’ remuneration – audit services      187 180
Depreciation of owned assets     988 1,285
Depreciation of assets held under finance leases     147 212
Operating lease rentals – plant and machinery     153 18
Operating lease rentals – motor vehicles     363 360
Operating lease rentals – other     2,493 2,905
Rental income      (1,302) (1,471)
Profit on sale of property, plant and equipment     (22) (71)
Foreign exchange loss/(gains)     65 (2)
        
During the period, the following services were provided by the Group auditors:
      2010 2009 
      £000 £000
Fees payable to the Company’s auditors for the audit of the financial statements   63 60
Fees payable to the Company’s auditors and its associates for other services:
Audit of the financial statements of the Company’s subsidiaries pursuant to legislation   124 120
Other services related to employment matters     11 36
        
       198 216
        
Cost of sales includes £nil (2009: £nil) of inventories recognised as an expense in the period. There were no write-downs or reversal of 
write-downs of inventories recognised as an expense in the period (2009: £nil).
Exceptional items and amortisation of intangible assets
      2010 2009 
      £000 £000
Redundancy and restructuring costs      — 2,566
Legacy contract settlement       — 1,000
Provision for OFT fine (see Note 23)      — 500
Legal fees in connection with OFT fine (see Note 23)    251  —
        
Total exceptional items      251 4,066
Amortisation of intangible assets (see Note 9)     320 309
        
       571 4,375
        
The Board has determined that certain charges to the income statement should be separately identified for better understanding of the 
Group’s results.
For the year ended 30 September 2009, following the deterioration in market conditions faced by certain of the Group’s companies, the Group 
decided to reduce its cost base in its Building business and to realign the activities of one of its Engineering businesses. As a result, the Group 
incurred redundancy and restructuring costs of £2,566,000 in that year. Associated with the realignment, the Group disposed of a non-core activity 
on 24 September 2009, and the losses incurred during the year by that activity of £130,000 have been included within the redundancy and 
restructuring costs.
Additionally, a charge of £1,000,000 was incurred in respect of a final account settlement on the last of the basket of legacy construction contracts, 
which were originally provided against in 2005.
In 2009, the Group provided for a fine of £500,000 in connection with the decision of the Office of Fair Trading following its investigation into tender 
activities within the construction sector. The related offences occurred in 2003 and 2004 in part of the Group which has been closed. Further details 
of this matter are set out in Notes 18 and 23. In the year ended 30 September 2010 the Group has incurred £251,000 of legal fees in connection with 
its defence in respect of the Office of Fair Trading investigation. The outcome of the appeal remains outstanding.
The Board has also separately identified the charge of £320,000 (2009: £309,000) for the amortisation of the fair value ascribed to certain intangible 
assets other than goodwill arising from the acquisitions of Seymour (C.E.C) Holdings Limited and C.&A. Pumps Limited. Further details are given 
in Note 9.
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Notes to the accounts continued
4 Finance income and costs
 
Finance income
Finance income of £205,000 (2009: £939,000) has been earned during the year on bank deposits.
      2010 2009 
      £000 £000
Interest payable        
On bank loans and overdrafts     (2) (13)
Other interest payable      (39) (33)
        
       (41) (46)
        
Other finance (charges)/income – defined benefit pension scheme
Expected return on scheme assets     5,657 6,919
Interest on scheme liabilities     (5,776) (6,854)
        
       (119) 65
        
Further information on the defined benefit pension scheme is set out in Note 24 to the accounts.
5 Employee numbers and remuneration
      2010 2009 
      Number Number
The average monthly number of employees,  including Executive Directors, 
employed in continuing activities during the year was:    1,280 1,438
        
At 30 September:      1,347 1,355
        
Production      788 849
Administrative      492 589
        
       1,280 1,438
        
Cost of staff, including Executive Directors, during the year amounted to:
      2010 2009 
      £000 £000
Wages and salaries      50,836 55,913
Social security costs      5,337 5,928
Other pension costs      2,742 2,267
Share based payments      55 (71)
        
       58,970 64,037
        
Directors’ emoluments
      2010 2009 
      £000 £000
Aggregate emoluments      957 875
        
Highest paid director: aggregate emoluments     492 472
        
Details of individual Directors’ emoluments can be found in the Directors’ Remuneration Report on page 39.
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6 Income tax expense
(a) Analysis of expense in year
      2010 2009 
      £000 £000
Current tax:       
UK corporation tax on profits of the year     (551)  —
Adjustments in respect of previous periods     (39) (32)
        
Total current tax      (590) (32)
        
Deferred tax – defined benefit pension scheme     (606) (566)
Deferred tax – other timing differences     (60) (194)
        
Total deferred tax       (666) (760)
        
Income tax expense      (1,256) (792)
        
(b) Factors affecting income tax expense for the year
      2010 2009 
      £000 £000
Profit before income tax      3,992 1,170
        
Profit multiplied by standard rate     
of corporation tax in the UK of 28% (2009: 28%)     (1,118) (328)
Effects of:       
Expenses not deductible for tax purposes     (286) (263)
Timing differences not provided in deferred tax      — 1,371
Change in tax rate      (116) —
Net benefit of tax losses      303 (1,540)
Adjustments to tax charge in respect of previous periods    (39) (32)
        
       (1,256) (792)
        
The Group has available further unused UK tax losses of £61m (2009: £66m) to carry forward against future taxable profits. The Group also 
has unused USA tax losses of $29m (£18.4m) (2009: $28m (£17.5m)) to carry forward against future taxable profits in the USA. A substantial 
element of these losses relates to activities which are not forecast to generate the level of profits needed to utilise these losses. A deferred tax 
asset has been provided to the extent considered reasonable by the Directors, where recovery is expected to be recognisable within the 
foreseeable future. The unrecognised deferred tax asset in respect of these losses amounts to £21m (2009: £23m).
(c) Deferred tax asset
      2010 2009 
      £000 £000
Defined benefit pension scheme     — 658
Accelerated capital allowances     660 418
Other timing differences      157 166
Future tax losses      2,466 2,855
        
       3,283 4,097
        
(d) Deferred tax liabilities
      2010 2009 
      £000 £000
Defined benefit pension scheme     (286)  —
Fair value adjustments      (138) (233)
        
       (424) (233)
        
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Notes to the accounts continued
6 Income tax expense continued
(e) Reconciliation of deferred tax asset
      2010 2009 
      £000 £000
At 1 October      4,097 4,069
Origination of timing differences     (40) (217)
Change of deferred tax rate to 27%     (116)  —
Defined benefit pension scheme – income statement    (606) (566)
Defined benefit pension scheme – SOCI     (52) 811
        
At 30 September      3,283 4,097
        
(f) Reconciliation of deferred tax liability
      2010 2009 
      £000 £000
At 1 October      (233) (256)
Accelerated capital allowances      — 9
Arising on fair value adjustments     95 14
Defined benefit pension scheme – SOCI     (286) —
        
At 30 September      (424) (233)
        
7 Dividends
      2010 2009 
      Pence/share Pence/share
Interim (related to the year ended 30 September 2010)    1.00 1.00
Final (related to the year ended 30 September 2009)    2.00 2.00
        
Total dividend paid      3.00 3.00
        
      £000 £000
        
Interim (related to the year ended 30 September 2010)    598 598
Final (related to the year ended 30 September 2009)    1,199 1,199
        
Total dividend paid      1,797 1,797
        
Dividends are recorded only when authorised and are shown as a movement in equity rather than as a charge in the income statement. The 
Directors are proposing that a final dividend of 2.0p per Ordinary Share be paid in respect of the year ended 30 September 2010. This will be 
accounted for in the 2010/11 financial year.
8 Earnings per share
  2010  2009
  Earnings EPS DEPS Earnings EPS DEPS 
  £000 Pence Pence £000 Pence Pence
Earnings before exceptional costs 3,153 5.26 5.04 3,668 6.12 5.98
Exceptional costs and amortisation (417) (0.69) (0.67) (3,290) (5.49) (5.36)
       
Basic earnings per share  2,736 4.57 4.37 378 0.63 0.62
       
Weighted average  
number of shares   59,899 62,584  59,899 61,352
       
The dilutive effect of share options is to increase the number of shares by 2,685,000 (2009: 1,453,000) and reduce basic earnings per share 
by 0.20p (2009: 0.01p).
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9 Intangible assets
       Contractual 
      Goodwill rights 
      £000 £000
Cost:       
At 1 October 2008      8,548 909
Additions      1,010 163
        
At 1 October 2009       9,558 1,072
Additions       —  —
        
At 30 September 2010      9,558 1,072
        
Impairment losses/amortisation:
At 1 October 2008      — 289
Charge for year      — 309
        
At 1 October 2009       — 598
Charge for year      — 320
        
At 30 September 2010      — 918
        
Carrying amount:
At 30 September 2010      9,558 154
        
At 30 September 2009      9,558 474
        
At 1 October 2008      8,548 620
        
The carrying amounts of goodwill by operating segment are as follows:
      2010 2009 
      £000 £000
Specialist Building      2,503 2,503
Specialist Engineering      7,055 7,055
        
       9,558 9,558
        
Goodwill of £803,000 was acquired on the acquisition of C.&A. Pumps Limited and has been reviewed for impairment one year after the 
acquisition as required by IFRS 3. No impairment has been identified. Goodwill of £207,000 acquired on the acquisition of Mothersill 
Engineering has also been reviewed for impairment one year after acquisition and no impairment has been identified (see Note 26).
Amortisation charges in respect of intangible assets with a finite life are recorded within administrative expenses in the income statement. 
The amortisation policy is disclosed in the accounting policies and approximates to a period of 4 years.
In order to test goodwill for impairment the Group performs value in use calculations by preparing cashflow forecasts for each cash 
generating unit derived from the most recent financial budgets and strategic plans approved by management going forward 3 years, and then 
extrapolates cashflows based on conservative estimated growth rates according to management’s view of longer term prospects for each 
cash generating unit. The cash generating units are deemed to be the subsidiaries to which the goodwill relates. Management used growth 
rates deemed to be appropriate to each cash generating unit after reviewing the particular market conditions related to the sector in which the 
cash generating unit operates. The growth rates used range from -8% to +5%. The rate used to discount the forecast cashflows is 8% as the 
Board considers the rate appropriate in the current financial market as an approximation to the cost of funds to the Group. The calculation 
shows that there is substantial headroom, and the impairment calculations are not particularly sensitive to changes in the discount rate applied.
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Notes to the accounts continued
10 Property, plant and equipment
     Long 
    Freehold leasehold Plant, 
    land and  land and vehicles and 
    buildings buildings  equipment T otal 
    £000 £000 £000 £000
Cost        
At 1 October 2008    500 789 4,820 6,109
Additions    701  — 905 1,606
Disposals     —  — (1,164) (1,164)
Acquisition of subsidiaries    620  — 463 1,083
       
At 1 October 2009    1,821 789 5,024 7,634
Additions     —  — 560 560
Disposals     —  — (623) (623)
       
At 30 September 2010    1,821 789 4,961 7,571
       
Depreciation       
At 1 October 2008     — 655 951 1,606
Charge for year    18 5 1,474 1,497
Disposals     —  — (837) (837)
       
At 1 October 2009    18 660 1,588 2,266
Charge for year    19 5 1,111 1,135
Disposals     —  — (520) (520)
       
At 30 September 2010    37 665 2,179 2,881
       
Net book value       
At 30 September 2010    1,784 124 2,782 4,690
       
At 30 September 2009    1,803 129 3,436 5,368
       
At 30 September 2008    500 134 3,869 4,503
       
The net book value of assets under finance leases at 30 September 2010 was £149,000 (2009: £296,000). During the year £147,000 
(2009: £212,000) of depreciation was charged against assets held under finance leases.
11 Inventories 
      2010 2009 
      £000 £000
Developments and undeveloped land     8,392 7,905
Raw materials      178 177
       
       8,570 8,082
       
£0.8m (2009: £0.5m) of inventories are pledged as security for liabilities.
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12 Trade and other receivables       
      2010 2009 
      £000 £000
Trade receivables      169 417
Amounts due from construction contract customers    60,822 59,522
Other receivables      6,037 5,766
Prepayments and accrued income     2,969 1,544
       
       69,997 67,249
       
The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
Included in trade and other receivables are debtors with a carrying value of £3.2m (2009: £9.8m) which are past due at the reporting date for 
which the Group has not provided as there has not been a significant change in credit quality and the Group believes that the amounts are 
still considered recoverable since there is no objective evidence that these financial assets are impaired. The Group does not hold any 
collateral over these balances. The average age of these receivables is 293 days (2009: 301 days).
Ageing of past due but not impaired receivables:
      2010 2009 
      £000 £000
30–180 days      866 3,786
180–365 days      1,369 1,637
Greater than 1 year      1,013 4,328
       
       3,248 9,751
       
13 Construction contracts      
      2010 2009 
      £000 £000
Contracts in progress at balance sheet date: 
Amounts due from construction contract customers included in trade and other receivables  60,822 59,522
Amounts due to construction contract customers included in trade and other payables   (8,025) (8,501)
       
       52,797 51,021
       
Contract costs incurred plus recognised profits less recognised losses to date   2,826,312 2,923,646
Less: progress billings      (2,773,515) (2,872,625)
       
       52,797 51,021
       
At 30 September 2010 retentions held by customers amounted to £14.8m (2009: £15.1m). Advances received from customers for contract 
work amounted to £8.0m (2009: £8.5m).
Amounts due from construction contract customers which are past due at the reporting date amounted to £3.2m (2009: £9.8m). 
This amount includes retention balances of £2.5m (2009: £3.4m). The Group does not hold any collateral over these balances or other trade 
and other receivables.
Contract revenue recognised in the year amounted to £290.3m (2009: £316.1m).
14 Cash and cash equivalents
      2010 2009 
      £000 £000
Cash at bank      16,369 14,855
Cash in hand      7 8
       
       16,376 14,863
       
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Notes to the accounts continued
15 Trade and other payables
      2010 2009 
      £000 £000
Amounts due to construction contract customers     8,025 8,501
Trade payables      28,700 27,533
Other taxation and social security     1,873 1,767
Other payables      2,878 1,335
Accruals and deferred income     56,699 54,476
       
       98,175 93,612
       
16 Borrowings        
      2010 2009 
      £000 £000
Bank loans and overdrafts       131 263
       
17 Obligations under finance leases
      Present value of minimum  
    Minimum lease payments  lease payments 
    2010 2009 2010 2009 
    £000 £000 £000 £000
Amounts payable under finance leases:       
 
Within one year    7 23 6 21
Within two to five years    — 6 — 6
       
     7 29 6 27
Less: future finance charges   (1) (2) — —
       
Present value of lease obligations   6 27 6 27
       
Less: amount due for settlement within twelve months    (6) (21)
       
Amount due for settlement after twelve months     — 6
       
It is the Group’s policy to lease certain of its plant and equipment under finance leases. The average outstanding lease term is 1 year 
(2009: 1 year). For the year ended 30 September 2010, the average effective borrowing rate was 7% (2009: 7%). Interest rates are fixed at 
the contract date. All leases are on a fixed repayment basis and no arrangement has been entered into for contingent rental payments.
All lease obligations are denominated in sterling. The fair value of the Group’s lease obligations approximates to their carrying amount. 
The Group’s obligations under finance leases are secured on the asset to which the lease relates.
18 Provisions     
     Property   
     obligations Other Total 
     £000 £000 £000
At 1 October 2009     1,299 500 1,799
Provision decrease during year    (447)  — (447)
       
At 30 September 2010     852 500 1,352
       
Non-current liabilities     520  — 520
Current liabilities     332 500 832
       
At 30 September 2010     852 500 1,352
       
Property obligations represent commitments on leases for properties which the Group does not occupy where the Group does not expect 
to receive income sufficient to cover the full commitment. The provision represents outflows which are expected to occur over the next five 
years. The provision has decreased during the year as the Group has been able to terminate a number of lease positions.
Other provisions is in respect of the fine levied by the Office of Fair Trading, details of which are given in Note 23.
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19 Other financial instruments
The Group’s principal financial instruments comprise bank loans, cash and short-term deposits and obligations under finance leases. 
The main purpose of these financial instruments is to provide finance for the Group’s operations. The Group has various other financial 
instruments such as trade receivables and trade payables that arise directly from its operations.
The Group also uses foreign currency borrowings to hedge certain of the currency risks arising from the Group’s overseas operations. 
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken. 
The disclosures below provide information about the contractual terms of the Group’s interest bearing deposits, loans and borrowings.
Interest rate profile of financial assets and liabilities
    Fixed rate  Financial assets/(liabilities)
    weighted 
    average Fixed  Floating  
    interest rate rate rate Total 
     % £000 £000 £000
2010       
Assets       
Sterling     —  — 16,221 16,221
Dollar     —  — 148 148
       
       — 16,369 16,369
       
Liabilities       
Sterling    7.0 (6)  — (6)
Dollar     — — (131) (131)
       
      (6) (131) (137)
       
    Fixed rate  Financial assets/(liabilities)
    weighted 
    average Fixed  Floating  
    interest rate rate rate Total 
     % £000 £000 £000
2009       
Assets       
Sterling     —  — 20,857 20,857
Dollar     —  — 29 29
       
       — 20,886 20,886
       
Liabilities       
Sterling    7.0 (27) (134) (161)
Dollar     — — (6,070) (6,070)
       
      (27) (6,204) (6,231)
       
The interest bearing assets accrue interest at prevailing market rates. Generally the Group holds deposits which are repayable on demand.
The sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or LIBOR. Certain US interest bearing 
liabilities accrue interest at a rate which is linked to the lender’s US Prime rate.
The maturity of the fixed rate financial liabilities is disclosed in Note 17. The fixed rate liabilities have a weighted average period of 1 year 
(2009: 1 year). The dollar floating rate liabilities are repayable on demand.
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64
Notes to the accounts continued
19 Other financial instruments continued
Fair value of financial assets and liabilities
There are no material differences between fair value and the book value of the Group’s financial assets and liabilities.
Financial risks
The Group has exposure to a number of financial risks through the conduct of its operations. Risk management is governed by the Group’s 
operational policies, guidelines and authorisation procedures which are outlined in the Corporate governance statement. The key financial 
risks resulting from financial instruments are credit, liquidity, currency and market risk. 
a) Credit risk
Credit risk is the risk of loss if a customer fails to meet its financial obligations and results primarily from the Group’s trade and other 
receivables. The degree to which the Group is exposed to this risk depends on the individual financial situation of each specific customer. 
The Group does not have any risk arising from a concentration of trade or other receivables in any customer or group of customers. The 
Group assesses the credit worthiness of every customer prior to entering into any contract and requires appropriate evidence of financial 
capability on a case by case basis. The Group reviews trade and other receivables for impairment on a regular basis and information relating 
to the ageing of receivables is provided in Note 12. 
b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Board is responsible for ensuring 
that the Group has sufficient liquidity to meet its financial liabilities as they fall due and does so by monitoring cashflow forecasts and 
budgets. The Board has considered the cashflow forecasts for the next twelve months which show that the Group is expected to maintain 
positive cash balances throughout the year. 
The Board aims to maintain a strong capital base so as to ensure investor and market confidence and to sustain the future of the business. 
The capital structure of the Group consists of equity attributable to equity holders of the Company as disclosed in Note 20 and reserves as 
disclosed in Note 21. The Group arranges short term overdraft facilities and hire purchase facilities as the Board deems necessary. The 
Group does not have any derivative or non-derivative financial liabilities other than those disclosed in Notes 15 to 17 and the retirement 
benefit obligations disclosed in Note 24. An analysis of the maturity profile for finance lease liabilities is given in Note 17.
c) Currency risk
The only exposure of the Group to currency risk (i.e. exposure to gains or losses on foreign exchange which would be recognised in the 
income statement) is in respect of the US dollar bank account which is maintained by the parent company in the UK and the unhedged 
portion of an inter-company loan. At 30 September 2010 the unhedged portion of the inter-company loan was $470,000 (2009: $nil). 
At 30 September 2010 the balance on the US dollar bank account was $nil (2009: $1,000). The dollar closing exchange rate was $1.58: £1 
(2009: $1.60: £1) resulting in a foreign exchange loss of £65,000 being charged to the income statement on the unhedged assets. 
Consequently, to the extent that the inter-company loan is not fully hedged, the income statement may be impacted by exchange rate 
movements. Exchange rate movement on translation of Lovell America, Inc. net assets are charged to the cumulative translation adjustment 
within total equity. The exchange gain arising on the translation of Lovell America, Inc. net assets was £13,000. The total equity statement will 
be impacted by £47,000 for each $0.01 movement in exchange rates. 
All functional currencies of the Group operations are denominated in sterling, with the exception of the US operations whose functional 
currency is the US dollar.
d) Market risk
Market risk is the risk that changes in market prices will affect the Group’s income or the carrying amount of its holding of financial instruments. 
The principal risk relates to interest rates where the Group’s risk is limited to the rates applying to its interest bearing short-term deposits. 
A reduction in market interest rates could lead to a reduction in the Group’s interest income. Consequently a 1% decrease in market interest 
rates would reduce finance income by £10,000 for every £1m held on deposit for one year.
The market risk associated with financial liabilities is limited to the interest rate on the Group’s US dollar overdraft and loans. A 1% increase in 
interest rates would lead to an increase in the Group’s interest expense of about £1,400 subject to foreign exchange rate movements, on the 
assumption of a US $0.2m overdraft being outstanding for one year. 
The Group’s hire purchase financial liabilities are all at fixed rates of interest.
During the financial year, the Company capitalised a $11m loan to its wholly-owned subsidiary Lovell America, Inc. and repaid a US $ loan of 
the same amount. Apart from this, there have been no changes in the nature of the risks arising from financial instruments in either the current 
or previous financial year.
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Accounts
20 Share capital
      2010 2009 
      £000 £000
Authorised:       
100,000,000 (2009: 100,000,000) Ordinary Shares of 10p each    10,000 10,000
       
Allotted, called up and fully paid:      
59,898,927 (2009: 59,898,927) Ordinary Shares of 10p each    5,990 5,990
       
The holders of Ordinary Shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at 
meetings of the Company.
There were no Ordinary Shares issued in either year ending September 2010 or 2009.
Share options
The Group operates a share option scheme, the Renew Holdings 2004 Executive Share Option Scheme. The scheme has both an Approved 
and Unapproved element. The difference between the two elements is that the Approved scheme has the advantage of certain HMRC 
approved tax benefits.
Both elements have the same general terms and conditions. Options issued under the scheme must be held for three years before they can 
vest and become exercisable. They must be exercised within ten years from the date of grant. 
Vesting of options is dependant on the achievement of certain performance criteria which are established by the Remuneration Committee 
at the point of grant. 761,904 of the options granted in the 2006 financial year have vested. In respect of the options granted during the 2007 
and 2008 financial years, the performance criteria were not met and so 940,252 of previously granted options have lapsed. In respect of the options 
granted during the 2009 financial year, 25% of the options will vest if the Group’s earnings per share for the year ending 30 September 2011 
exceed 10p. For 100% vesting to occur, the Group’s earnings per share for the year ending 30 September 2011 must be at least 13.50p. 
In respect of the options granted in the 2010 financial year, 25% of the options will vest if the Group’s earnings per share for the year 
ended 30 September 2012 exceed 6.95p. For 100% vesting to occur, the Group’s earnings per share for that year must be at least 8.50p.
The scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the options will lapse.
The number of options in issue and their exercise price is given in Note 21.
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Notes to the accounts continued
21 Reserves
   Share Capital Cumulative Share based  
   premium  redemption translation payments Retained 
   account reserve reserve reserve earnings 
   £000 £000 £000 £000 £000
At 1 October 2008   5,893 3,896 424 233 (2,155)
Transfer from income statement for the year      378
Dividends paid       (1,797)
Recognition of share based payments     (71) 
Exchange differences     622  
Actuarial loss recognised in pension scheme      (2,895)
Movement on deferred tax relating 
to the pension scheme       811
       
At 1 October 2009   5,893 3,896 1,046 162 (5,658)
Transfer from income statement for the year      2,736
Dividends paid       (1,797)
Recognition of share based payments     55 
Exchange differences     13  
Actuarial gain recognised in pension scheme      1,164
Movement on deferred tax relating 
to the pension scheme       (338)
       
At 30 September 2010   5,893 3,896 1,059 217 (3,893)
       
There is no available analysis of goodwill written off against reserves in respect of existing subsidiaries that were acquired prior to 1989 and 
therefore, in accordance with the guidance of IFRS 3, the Directors are not able to state this figure.
Capital redemption reserve
Reserve represents the combined impact of share buy-backs in previous years.
Cumulative translation reserve
Reserve represents the foreign exchange movement on translating the opening net assets of Lovell America, Inc.
Share based payments reserve
IFRS 2 “Share Based Payment” requires a fair value to be established for any equity settled share based payments. Fair value has been 
independently measured by Baker Tilly, Chartered Accountants, using a Black-Scholes valuation model. The fair value determined at the grant 
date of the equity settled share based payments is expensed on a straight-line basis over the vesting period, based on the Directors’ estimate 
of shares that will eventually vest.
£55,000 has been charged (2009: credited £71,000) to administrative expenses.
There is no impact on net assets since an equivalent amount has been credited to the share based payments reserve.
No options were exercised during the year.
The value per option represents the fair value of the option less the consideration payable.
The expected volatility is based on historical volatility of the share price since the Company listed on AIM in 2001.
The risk free rate of return has been derived from the Bank of England’s yield curve taking the spot rate for a maturity of 36 months. 
This period has been selected as being the minimum period over which the options could remain extant.
Options granted under the Renew Holdings 2004 Executive Share Option Scheme over the Company’s ordinary shares at 30 September 2010 
were as follows:
     7 June 26 November 25 November 
Date of grant    2006 2008  2009 T otal
Awards outstanding at 30 September 2010  – Directors  761,904 829,404 1,312,319 2,903,627
       
Exercise price and price at date of grant   52.5p 54.5p 34.5p  — 
Maximum option life    10 years 10 years 10 years  — 
Assumed option life for purposes of valuation   3 years 3 years 3 years  — 
Expected volatility    47% 41% 53%  — 
Dividend yield    1.0% 5.9% 8.5%  — 
Risk free interest rate    4.67% 3.85% 1.88%  — 
Value per option    20.5p 10.2p 8.7p  — 
The options granted on 7 June 2006 have vested in full. The options granted on 8 January 2007 and 3 December 2007 have lapsed.
There were 1,591,308 options outstanding at 1 October 2009 being those issued in June 2006 and November 2008 as detailed above.
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22 Capital and leasing commitments
    Land and  Total Total 
    buildings Other 2010 2009 
    £000 £000 £000 £000
Commitments under non-cancellable operating leases:
Under one year    2,566 169 2,735 2,952
Two to five years    7,968 89 8,057 8,924
Five or more years    21,345 — 21,345 22,593
       
     31,879 258 32,137 34,469
       
With regard to the operating leases held by the Group as lessor, the Group recognised £1,302,000 (2009: £1,471,000) of rental income in the 
income statement for 2010, relating to sub-letting of surplus premises. 
The future minimum sub-lease receipts expected to be received under non-cancellable operating leases are as follows:
    Land and  Total Total 
    buildings Other 2010 2009 
    £000 £000 £000 £000
Receivables under non-cancellable operating leases:
Under one year    827  — 827 1,184
Two to five years    1,840  — 1,840 3,060
Five or more years    302  — 302 404
       
     2,969  — 2,969 4,648
       
The Group had no capital commitments at 30 September 2010 (2009: £nil).
23 Contingent liabilities
Office of Fair Trading investigation
The Company has received the decision from the Office of Fair Trading (“OFT”) following its investigation into tender activities within the 
construction sector.
In 2007, the Company announced that Allenbuild, one of its subsidiaries, had been contacted by the OFT in relation to some historic contract 
tenders. Renew and Allenbuild have cooperated fully with the OFT throughout its investigation.
Under the OFT’s Fast Track Offer Allenbuild made two admissions of participation in cover pricing activities in respect of two tenders which 
occurred in 2003 and 2004 in the, now closed, Midlands office of Allenbuild. No employees connected with the infringements remain with the 
Group. Prior to the OFT investigation, the Board of Renew was unaware of these infringements, which took place prior to the appointment of 
the current Group Executive Directors. 
Immediately following the commencement of the OFT investigation, Renew introduced reinforced Group-wide tendering procedures. These 
guidelines and controls are in place to ensure that all subsidiaries comply with competition laws. Compliance with these procedures is audited 
on a regular basis. The practice of cover pricing is not regarded as acceptable within the Renew Group of companies.
The OFT’s decision was that a fine of £0.5m will be levied on Allenbuild and that a fine of £3.0m will be levied on Bullock Construction Limited 
(“Bullock”). Bullock is a former subsidiary of Renew which was sold in September 2005 to a company controlled by Bullock’s management. 
The Bullock offence occurred in 2000. The OFT holds that Renew Holdings plc is jointly and severally liable for both of these fines but leaves 
the determination of apportionment of liability to the parties themselves.
The Board of Renew was totally unaware of the circumstances surrounding the Bullock infringement as there are no records remaining within 
the Group following the sale of Bullock.
Having taken legal advice, Renew has appealed against the OFT’s decision on a number of counts. In respect of the Bullock fine, taking into 
account the specific facts concerning the matter, the Board believes that Renew has no liability and has appealed on that ground amongst 
others. Accordingly, in the 2009 results, the Group provided a sum of £0.5m as an exceptional charge in respect of the Allenbuild fine, with 
no provision for the Bullock fine. Were the Company’s appeals against the Bullock fine not to be upheld, then the Group may have a greater 
liability in respect of this matter. The Board awaits the outcome of the appeals and consequently continues to believe that the provision 
represents the best estimate of the anticipated outcome.
Other
Under the terms of the Group’s banking agreement, security over the Group’s assets has been granted to the Group’s bankers.
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Notes to the accounts continued
24 Employee benefits: Retirement benefit obligations
Defined benefit pension scheme
The defined benefit pension scheme was closed to new members in June 2000. On 1 August 2001, the Board decided that no further 
benefits would accrue to existing members with more than five years expected service remaining. These members were transferred to the 
defined contribution scheme but retained the benefits earned to date under the defined benefit pension scheme. 
IAS 19 “Employee Benefits”
The Directors have adopted the accounting required by IAS 19 with effect from the transition date. The Directors have discussed the 
assumptions used in determining the actuarial valuations set out below with independent pension advisors and have determined that they are 
appropriate. The scheme valuation at 30 September 2010 has shown a surplus of £1,060,000 based on the assumptions set out below. The 
Directors have determined that it is appropriate to recognise this surplus as, having reviewed the rules of the Lovell Pension Scheme, they are 
of the view that the Group has an unconditional right to that surplus.
The following disclosures required by IAS 19 have been based on the most recent actuarial valuation as at 30 September 2010 carried out by 
Lane Clark & Peacock LLP , Consulting Actuaries, using the following financial assumptions:
     As at As at As at 
     30 September 30 September 30 September 
     2010 2009 2008
Rate of increase in salaries     4.00% 4.00% 4.00%
LPI increases to pensions in payment    3.20% 3.10% 3.10%
Discount rate     4.90% 5.70% 7.00%
Inflation assumption     2.80% 3.10% 3.50%
Increases in deferred pensions    2.80% 3.10% 3.10%
In response to the statement issued on 8 July 2010 by the Minister for Pensions regarding the Government’s intention to use the Consumer 
Prices Index (“CPI”) rather than the Retail Prices Index (“RPI”) as the inflation measure to determine pension increases linked to statutory 
indices, the Directors have had regard to the Accounting Standard Board’s Urgent Issues Task Force Information Sheet No. 90. The Directors 
have reviewed the rules of the Lovell Pension Scheme and, as the rules are not specific in relation to the index to be used in calculating 
deferred pension entitlements, have concluded that it is appropriate to regard the change from RPI to CPI as a change in actuarial assumptions 
in respect of deferred pension entitlements. The reduction in scheme liabilities arising from this change in actuarial assumptions is recorded 
as an actuarial gain in the statement of comprehensive income.
The mortality tables adopted for the 2010 and 2009 valuations are the Continuing Mortality Investigations PNA00 series with projected 
longevity improvements fully allowed for according to each member’s year of birth and with an additional allowance for future longevity 
improvements known as the medium cohort adjustment. The assumptions include adjustments to these tables based upon a postcode 
analysis of the membership. The Directors believe that this analysis provides a more reliable estimate of the mortality characteristics of the 
scheme’s membership. In 2008, the PA1992 series tables incorporating a medium cohort adjustment were used. An example of the effect 
of the changes in mortality assumption is that under the 2010 and 2009 assumptions a 60 year old male pensioner is forecast to live for a 
further 25.4 years compared to 26.8 years under the 2008 assumptions.
The assets in the scheme and the expected rates of return were:
  Value as at  Value as at  Value as at  
  30 September Expected 30 September Expected 30 September Expected 
  2010 rate of 2009 rate of 2008 rate 
  £000 return £000 return £000 of return
Annuities  505  526  632 
Gilts + 2.5% fund  72,584 6.20% 59,583 6.60% 50,659 7.20%
Bonds  52,566 5.00% 51,050 5.60% 48,190 7.00%
Cash   324 0.05% 102 0.05% 39 4.50%
       
Total  125,979  111,261  99,520 
       
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24 Employee benefits: Retirement benefit obligations continued
The following amounts at 30 September were measured in accordance with the requirements of IAS 19.
      2010 2009 
      £000 £000
Movements in scheme assets and liabilities
Total fair value of scheme assets brought forward     111,261 99,520
Expected return on scheme assets     5,657 6,919
Employer contributions      2,451 2,028
Annuities      505 526
Benefits paid      (7,009) (6,280)
Actuarial gain on scheme assets     13,114 8,548
       
Total fair value of scheme assets carried forward     125,979 111,261
       
Present value of scheme obligations brought forward    113,612 100,999
Interest costs      5,776 6,854
Current service costs      85 70
Annuities      505 526
Benefits paid      (7,009) (6,280)
Actuarial increase in scheme obligations     11,950 11,443
       
Total fair value of scheme obligations carried forward    124,919 113,612
       
Surplus/(deficit) in the scheme     1,060 (2,351)
Deferred tax      (286) 658
       
Net surplus/(deficit)      774 (1,693)
       
Amounts charged to operating profit:      
 Current service cost       (85) (70)
       
Amount (charged)/credited to other financial (charges)/income:
 Expected return on scheme assets     5,657 6,919
 Interest on scheme liabilities     (5,776) (6,854)
       
       (119) 65
       
Amounts recognised in the statement of comprehensive income:     
 Actual less expected return on scheme assets     13,114 8,548
 Effect of change in assumptions on scheme liabilities    (11,950) (11,443)
       
 Actuarial gain/(loss)      1,164 (2,895)
       
Movement in the net scheme deficit during the year:      
 Net scheme deficit brought forward     (2,351) (1,479)
 Current service cost       (85) (70)
 Cash contribution       2,451 2,028
 Other finance (expense)/income     (119) 65
 Actuarial gain/(loss)      1,164 (2,895)
       
 Net scheme surplus/(deficit) carried forward     1,060 (2,351)
       
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Notes to the accounts continued
24 Employee benefits: Retirement benefit obligations continued
   2010 2009 2008 2007 2006
Difference between the expected and actual return 
on scheme assets   £13,114,000 £8,548,000 £(6,905,000) £(7,960,000) £(1,786,000)
As a percentage of the assets at the end of the year 10.4% 7.7% (6.9)% (8.0)% (1.6)%
Experience gains/(losses) on scheme liabilities  £2,100,000  — £600,000 £(575,000) £(72,000)
As a percentage of the liabilities at the end of the year 1.7%  — 0.6% (1.0)% 0.0%
Total amount recognised in the statement of 
comprehensive income   £1,164,000 £(2,895,000) £(497,000) £(1,804,000) £(7,803,000)
As a percentage of the liabilities at the end of the year 0.9% (2.6)% (0.5)% (1.7)% (6.9)%
The scheme has been in operation for many years and, after taking advice from the Group’s pension advisors, the Directors have determined 
that it is not possible to allocate the assets and liabilities of the scheme between the various Group companies. As permitted by IAS 19, 
the Group has taken advantage of the multi-employer exemption and the deficit of the scheme is accounted for as an unallocated 
consolidation adjustment.
Defined contribution pension scheme
On 1 April 2008, the Renew Holdings Pension Scheme commenced winding up. During the 2009 financial year, the assets were transferred 
to individual stakeholder plans which the Group established for scheme members.
The Group made contributions of £2,742,000 (2009: £1,553,000) into these plans during the year. There are also £192,000 (2009: £181,000) 
of accruals relating to these plans.
25 Related parties
The Group has a related party relationship with its key management personnel who are the Main Board Directors: B May, J Samuel, R Harrison 
and J Bishop, whose total compensation amounted to £957,000 all of which was represented by short-term employment benefits.
There were no other transactions with key management personnel in the year.
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26 Acquisition of subsidiary undertakings
With effect from 1 October 2008, the Company’s wholly owned subsidiary, Seymour (Civil Engineering Contractors) Limited, acquired the 
whole of the issued share capital of C.&A. Pumps Limited (“C&A ”) for a consideration of £1.76m all of which was paid in cash. On 22 May 2009, 
the Group acquired the trading assets and liabilities of Mothersill Engineering (“Mothersill”) for a consideration of £0.43m all of which was 
paid in cash.
The value of the assets and liabilities of C&A and Mothersill at the date of acquisition were:
      Book value Adjustments Fair value 
     £000 £000 £000
Non-current assets
Intangible assets – goodwill     1,010 1,010
Intangible assets – other      163 163
Property, plant and equipment    987 96 1,083
       
      987 1,269 2,256
       
Current assets
Inventories     136  136
Trade and other receivables    646  646
       
      782 — 782
       
Total assets     1,769 1,269 3,038
       
Non-current liabilities       
Deferred tax liabilities     (23) (27) (50)
Obligations under finance leases    (18)  (18)
       
      (41) (27) (68)
       
Current liabilities        
Borrowings     (68)  (68)
Trade and other payables     (664)  (664)
Current tax liabilities     (10)  (10)
Obligations under finance leases    (36)  (36)
       
      (778)  — (778)
       
Total liabilities     (819) (27) (846)
       
Net assets      950 1,242 2,192
       
Goodwill of £1,010,000 was acquired on acquisition and has been reviewed for impairment one year after the acquisitions as required by 
IFRS 3. The goodwill is attributable to the expertise and workforce of the acquired business. Other intangible assets of £163,000, representing 
contractual rights of C&A, were also acquired and will be amortised over their useful economic lives in accordance with IFRS 3.
The value of land acquired with C&A and included in tangible fixed assets has been increased from £524,000 to £620,000 as a result of a fair 
value adjustment. The land was independently valued by Hanline Associates, Chartered Surveyors, on 2 July 2008 on an existing use basis. 
This valuation was reconfirmed by the same valuers as at 30 September 2009.
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at 30 September
Company balance sheet
      2010 2009 
     Note £000 £000
Fixed assets
Tangible assets     E 813 842
Investments     F 97,131 90,525
       
       97,944 91,367
       
Current assets      
Stocks and work in progress    G 581 342
Debtors: due within one year    H 22,670 26,353
Cash at bank and in hand     I 8,991 14,065
       
       32,242 40,760
Creditors: amounts falling due in less than one year   J (104,313) (105,174)
       
Net current liabilities      (72,071) (64,414)
       
Total assets less current liabilities     25,873 26,953
       
Net assets      25,873 26,953
       
Capital and reserves      
Share capital     L 5,990 5,990
Share premium account     M 5,893 5,893
Capital redemption reserve     M 3,896 3,896
Share based payments reserve    M 217 162
Profit and loss account     M 9,877 11,012
       
Equity shareholders’ funds    N 25,873 26,953
       
Approved by the Board and signed on its behalf by:
R J Harrison OBE 
Chairman
23 November 2010
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Company accounts
Notes to the company accounts
A Accounting policies
(i) Basis of accounting
The accounts have been prepared on the going concern basis and in accordance with UK applicable accounting standards under the 
historical cost convention.
A summary of the more important Company accounting policies, which have been applied consistently, is set out below:
(ii) Investments in subsidiaries
Investments in subsidiaries are recorded at cost less provision for impairment.
(iii) Tangible fixed assets
Tangible fixed assets are recorded at cost less provision for impairment if required. Depreciation is provided on all tangible fixed assets, 
other than freehold land. Provision is made at rates calculated to write off the cost of each asset, less estimated residual value, evenly over 
its expected useful life as follows:
Freehold land    – no depreciation charge 
Long leasehold land and buildings – shorter of fifty years and period of lease 
Plant and vehicles   – three to ten years 
Office equipment   – two to seven years
(iv) Leasing commitments
Rentals under operating leases are charged to the profit and loss account on a straight-line basis over the term of the lease.
(v) Share based payments
FRS 20 “Share Based Payments” requires a fair value to be established for any equity settled share based payments. Fair value has been 
independently measured using a Black Scholes valuation model. The fair value determined at the grant date of the equity settled share based 
payments is expensed on a straight-line basis over the vesting period based on the Directors’ estimate of shares that will eventually vest.
(vi) Deferred taxation
The payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items for accounting and 
taxation purposes. Full provision for deferred taxation is made under the liability method, without discounting, on timing differences that have 
arisen, but not reversed by the balance sheet date, unless such provision is not permitted by FRS 19 “Deferred Tax”.
Deferred tax assets are recognised to the extent it is considered more likely than not that they will be recovered. In accordance with FRS 19 
deferred tax is not provided for on: 
a) revaluation gains on land and buildings, unless there is a binding agreement to sell them at the balance sheet date;
b) gains on the sale of non-monetary assets, if the taxable gain will probably be rolled over;
c) fair value adjustment gains to fixed assets and stock to uplift prices to those ruling when an acquisition is made; and
d) extra tax payable if the overseas retained profits of subsidiaries, joint ventures or associates are remitted in the future.
Deferred tax assets are recognised for taxable losses relating to trading to the extent that those losses are expected to be recoverable within 
the foreseeable future.
(vii) Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted rate if the transaction is 
covered by a forward exchange contract. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange 
ruling at the balance sheet date or, if appropriate, at the forward contract rate. Exchange differences are taken to the profit and loss account.
(viii) Defined benefit pension scheme
The Company has adopted the requirements of FRS 17 “Retirement Benefits”. The Directors have determined that it is not possible to 
allocate the assets and liabilities of the scheme between the various Group companies. Accordingly the scheme is not accounted for in the 
Company’s balance sheet. However, any increase in the present value of liabilities within the defined benefit scheme expected to arise from 
employee service in the period is charged to operating profit in respect of the Company’s employees.
(ix) Defined contribution pension plans
Contributions to the Company’s stakeholder pension plans are charged to the profit and loss account as incurred.
(x) Dividends
Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised and are 
no longer at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.
(xi) Stocks and work in progress
Stocks comprise land held for development and are stated at the lower of cost and net realisable value. Cost includes appropriate attributable 
overheads and excludes interest. Where necessary, provision is made for obsolete, slow moving and defective stocks.
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Notes to the company accounts continued
B Profit and loss account
As permitted by Section 408 of the Companies Act 2006, the Company has not presented its own profit and loss account. The profit after 
taxation for the financial year dealt with in the accounts of the Company was £662,000 (2009: £7,218,000).
The audit fee charged within the profit and loss account amounted to £63,000 (2009: £60,000).
C Employee numbers and remuneration
      2010 2009 
      Number Number
The average monthly number of employees, all of whom were administrative staff including  
Executive Directors, employed in continuing activities during the year was:   36 41
       
At 30 September:      36 38
       
Cost of staff, including Executive Directors, during the year amounted to:
       £000 £000
Wages and salaries      1,975 2,265
Social security costs      233 293
Other pension costs      116 184
Share based payments      55 (71)
       
      2,379 2,671
       
Details of individual Directors’ emoluments and pension contributions can be found in the Directors’ Remuneration Report on page 39.
D Dividends
      2010 2009 
      Pence/share Pence/share
Interim (related to the year ended 30 September 2010)    1.00 1.00
Final (related to the year ended 30 September 2009)    2.00 2.00
       
Total dividend paid      3.00 3.00
       
      £000 £000
Interim (related to the year ended 30 September 2010)    598 598
Final (related to the year ended 30 September 2009)    1,199 1,199
       
Total dividend paid      1,797 1,797
       
Dividends are recorded only when authorised and are shown as a movement in equity shareholders’ funds rather than as a charge in the 
profit and loss account. The Directors are proposing that a final dividend of 2.0p per Ordinary Share be paid in respect of the year ended 
30 September 2010. This will be accounted for in the 2010/11 financial year.
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Company accounts
E Tangible fixed assets
     Long  
    Freehold leasehold Plant,   
    land and land and  vehicles and  
    buildings buildings  equipment T otal 
    £000 £000 £000 £000
Cost
At 1 October 2009    701 789 314 1,804
Disposals     —  — (8) (8)
       
At 30 September 2010    701 789 306 1,796
       
Depreciation       
At 1 October 2009    9 660 293 962
Charge for year    9 5 13 27
Disposals     —  — (6) (6)
       
At 30 September 2010    18 665 300 983
       
Net book value       
At 30 September 2010    683 124 6 813
       
At 30 September 2009    692 129 21 842
       
The Company has no assets held under finance leases or hire purchase agreements.
F Investments
       Subsidiary 
       undertakings 
        £000
Shares at cost
At 1 October 2009       159,405
Additions       6,606
At 30 September 2010       166,011
Provisions    
At 1 October 2009 and 30 September 2010      68,880
Net book value
At 30 September 2010       97,131
At 30 September 2009       90,525
During the year Lovell America, Inc. was acquired from a subsidiary undertaking at fair value. At the same time a provision of £5.9m which 
was previously held against a debt due from Lovell America, Inc. was transferred against the carrying value of the investment. 
Details of the principal subsidiary undertakings are included in Note R. 
The investment in subsidiaries is supported by their net asset values and their discounted expected future cashflows.
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G Stock and work in progress
      2010 2009 
      £000 £000
Undeveloped land      581 342
       
H Debtors
      2010 2009 
      £000 £000
Due within one year  
Trade debtors      97 332
Due from subsidiary undertakings     20,565 25,369
Other debtors      180 68
Deferred tax       10 83
Prepayments and accrued income     1,818 501
       
       22,670 26,353
       
I Cash at bank and in hand
      2010 2009 
      £000 £000
Cash at bank      8,991 14,065
       
J Creditors: amounts falling due within one year
      2010 2009 
      £000 £000
Trade creditors      72 590
Other taxation and social security     801 826
Due to subsidiary undertakings     97,290 97,612
Other creditors      282 288
Accruals and deferred income     5,868 5,858
       
       104,313 105,174
       
Notes to the company accounts continued
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Company accounts
K Derivatives and other financial instruments
Currency exposures
The only exposure of the Company to currency risk (i.e. exposure to gains or losses on foreign exchange which would be recognised in the 
profit and loss account) is in respect of the US dollar bank account which is maintained by the Company in the UK and the unhedged portion 
of an inter-company loan. At 30 September 2010 the unhedged portion of the inter-company loan was $470,000 (2009: $nil). At 30 September 2010 
the balance on the US dollar bank account was $nil (2009: $1,000).
The Company’s operations are denominated in sterling.
Fair value of financial assets and liabilities
There are no material differences between fair value and the book value of the Company’s financial assets and liabilities.
L Share capital
      2010 2009 
      £000 £000
Authorised:  
100,000,000 (2009: 100,000,000) Ordinary Shares of 10p each    10,000 10,000
       
Allotted, called up and fully paid:  
59,898,927 (2009: 59,898,927) Ordinary Shares of 10p each    5,990 5,990
       
Share options
The Company operates a share option scheme, the Renew Holdings 2004 Executive Share Option Scheme.
Details of the scheme and options in issue is given below and in Note M.
The scheme has both an Approved and Unapproved element. The difference between the two elements is that the Approved scheme has the 
advantage of certain HMRC approved tax benefits.
Both elements have the same general terms and conditions. Options issued under the scheme must be held for three years before they can 
vest and become exercisable. They must be exercised within ten years from the date of grant. 
Vesting of options is dependant on the achievement of certain performance criteria which are established by the Remuneration Committee 
at the point of grant. 761,904 of the options granted in the 2006 financial year have vested. 
In respect of the options granted during the 2007 and 2008 financial years, the performance criteria were not met and so 940,252 of 
previously granted options have lapsed. 
In respect of the options granted during the 2009 financial year, 25% of the options will vest if the Group’s earnings per share for the year ending 
30 September 2011 exceed 10p. For 100% vesting to occur, the Group’s earnings per share for the year ending 30 September 2011 must be 
at least 13.50p. In respect of the options granted in the 2010 financial year, 25% of the options will vest if the Group’s earnings per share for 
the year ended 30 September 2012 exceed 6.95p. For 100% vesting to occur, the Group’s earnings per share for that year must be at least 8.50p.
The scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the options will lapse.
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Notes to the company accounts continued
M Reserves
    Share Capital Share based Profit 
    premium redemption payments and loss 
    account reserve reserve account 
    £000 £000 £000 £000
At 1 October 2009     5,893 3,896 162 11,012
Transfer from profit and loss account for the year      662
Recognition of share based payments     55 
Dividends paid       (1,797)
       
At 30 September 2010    5,893 3,896 217 9,877
       
Share based payments reserve
FRS 20 “Share Based Payment” requires a fair value to be established for any equity settled share based payments. Fair value has 
been independently measured by Baker Tilly, Chartered Accountants, using a Black-Scholes valuation model. The fair value determined 
at the grant date of the equity settled share based payments is expensed on a straight-line basis over the vesting period, based on the 
Directors’ estimate of shares that will eventually vest.
£55,000 has been charged (2009: credited £71,000) to administrative expenses.
There is no impact on net assets since an equivalent amount has been credited to the share based payments reserve. 
No options were exercised during the year. 
The value per option represents the fair value of the option less the consideration payable. 
The expected volatility is based on historical volatility of the share price since the Company listed on AIM in 2001. 
The risk free rate of return has been derived from the Bank of England’s yield curve taking the spot rate for a maturity of 36 months. 
This period has been selected as being the minimum period over which the options could remain extant.
Options granted under the Renew Holdings 2004 executive Share Option Scheme over the Company’s ordinary shares at 
30 September 2010 were as follows: 
    7 June  26 November 25 November  
Date of grant    2006 2008  2009 Total
Awards outstanding at 30 September 2010
 – Directors    761,904 829,404 1,312,319 2,903,627
Exercise price and price at date of grant   52.5p 54.5p 34.5p  — 
Maximum option life    10 years 10 years 10 years  — 
Assumed option life for purposes of valuation   3 years 3 years 3 years  — 
Expected volatility    47% 41% 53%  — 
Dividend yield    1.0% 5.9% 8.5%  — 
Risk free interest rate    4.67% 3.85% 1.88%  — 
Value per option    20.5p 10.2p 8.7p  — 
The options granted on 7 June 2006 have vested in full. The options granted on 8 January 2007 and 3 December 2007 have lapsed.
There were 1,591,308 options outstanding at 1 October 2009 being those issued in June 2006 and November 2008 as detailed above.
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Company accounts
N Reconciliation of movements in equity shareholders’ funds
      2010 2009 
      £000 £000
Profit for the year      662 7,218
Dividends paid      (1,797) (1,797)
Recognition of share based payments     55 (71)
At 1 October 2009      26,953 21,603
       
At 30 September 2010       25,873 26,953
       
O Capital and leasing commitments
    Land and  Total Total 
    buildings Other 2010 2009 
    £000 £000 £000 £000
Annual commitments under non-cancellable  
operating leases expiring in:
Under one year     — 7 7 11
Two to five years     — 15 15 8
Five or more years    1,557  — 1,557 1,519
       
     1,557 22 1,579 1,538
       
The Company has capital commitments at 30 September 2010 of £nil (2009: £nil).
P Contingent liabilities
The Company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the normal course of business 
of its subsidiary undertakings.
Under the terms of the Group’s banking agreement, security over the Company’s assets has been granted to the Group’s bankers.
The Company is a participant together with a number of subsidiary undertakings in the Group banking arrangements, and as a result has 
risks associated with the financial status and performance of the other companies within the Group.
Office of Fair Trading Investigation
The Company has received the decision from the Office of Fair Trading (“OFT”) following its investigation into tender activities within the 
construction sector.
In 2007, the Company announced that Allenbuild, one of its subsidiaries, had been contacted by the OFT in relation to some historic contract 
tenders. Renew and Allenbuild have cooperated fully with the OFT throughout its investigation.
Under the OFT’s Fast Track Offer Allenbuild made two admissions of participation in cover pricing activities in respect of two tenders which 
occurred in 2003 and 2004 in the, now closed, Midlands office of Allenbuild. No employees connected with the infringements remain with the 
Group. Prior to the OFT investigation, the Board of Renew was unaware of these infringements, which took place prior to the appointment of 
the current Group Executive Directors.
Immediately following the commencement of the OFT investigation, Renew introduced reinforced Group-wide tendering procedures. These 
guidelines and controls are in place to ensure that all subsidiaries comply with competition laws. Compliance with these procedures is 
audited on a regular basis. The practice of cover pricing is not regarded as acceptable within the Renew Group of companies.
The OFT’s decision was that a fine of £0.5m will be levied on Allenbuild and that a fine of £3.0m will be levied on Bullock Construction Limited 
(“Bullock”). Bullock is a former subsidiary of Renew which was sold in September 2005 to a company controlled by Bullock’s management. 
The Bullock offence occurred in 2000. The OFT holds that Renew Holdings plc is jointly and severally liable for both of these fines but leaves 
the determination of apportionment of liability to the parties themselves.
The Board of Renew was totally unaware of the circumstances surrounding the Bullock infringement as there are no records remaining within 
the Group following the sale of Bullock.
Having taken legal advice, Renew has appealed against the OFT’s decision on a number of counts. In respect of the Bullock fine, taking into 
account the specific facts concerning the matter, the Board believes that Renew has no liability and has appealed on that ground amongst 
others. Accordingly, in the 2009 results, the Group provided a sum of £0.5m as an exceptional charge in respect of the Allenbuild fine, with no 
provision for the Bullock fine. Were the Company’s appeals against the Bullock fine not to be upheld, then the Company may have a greater 
liability in respect of this matter. The Board awaits the outcome of the appeals and consequently continues to believe that the provision 
represents the best estimate of the anticipated outcome.
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Annual Report and Accounts 2010
www.renewholdings.com
80
Notes to the company accounts continued
Q Defined contribution pension scheme
On 1 April 2008, the Renew Holdings Pension Scheme commenced winding up. During the 2009 financial year, the assets were transferred to 
individual stakeholder plans which the Group established for scheme members.
The Company made contributions of £116,000 (2009: £184,000) into these plans during the year. There are also £10,000 (2009: £6,000) of 
accruals relating to these plans.
R Principal subsidiary undertakings
Renew Holdings plc acts as the holding company of the Group. The principal activity of the Group during the year was construction and 
construction related activities.
The principal subsidiary undertakings are shown below.
       Proportion of 
       Ordinary 
      Incorporation & Shares 
      principal place held by the 
      of business Company
Subsidiary undertakings
YJL Ltd   Owned by Renew Holdings plc England and Wales 100%
Allenbuild Ltd   Owned by subsidiary  England and Wales 100%
Britannia Construction Ltd   Owned by subsidiary  England and Wales 100%
Walter Lilly & Co Ltd   Owned by subsidiary  England and Wales 100%
YJL London Ltd   Owned by subsidiary  England and Wales 100%
YJL Infrastructure Ltd   Owned by subsidiary  England and Wales 100%
VHE Construction Plc   Owned by subsidiary  England and Wales 100%
Shepley Engineers Ltd   Owned by subsidiary  England and Wales 100%
Seymour (Civil Engineering Contractors) Ltd  Owned by subsidiary  England and Wales 100%
Lovell America, Inc   Owned by Renew Holdings plc  USA 100%
S Related parties
The Company has a related party relationship with its key management personnel who are the Main Board Directors: B May, J Samuel, 
R Harrison and J Bishop, whose total compensation amounted to £957,000 all of which was represented by short-term employment benefits.
There were no other transactions with key management personnel in the year.
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Annual Report and Accounts 2010
81
www.renewholdings.com
Directors, officers and advisors
Directors, officers and advisors
Directors
R Harrison OBE (Non-executive Chairman) 
B May (Chief Executive) 
J Samuel FCA (Group Finance Director) 
J Bishop FCA (Independent Non-executive)
Registrars
Capita Registrars 
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
HD8 0GA
Auditors
KPMG Audit Plc 
1 The Embankment 
Neville Street 
Leeds LS1 4DW 
Nominated advisor and broker
Brewin Dolphin Securities Ltd 
34 Lisbon Street 
Leeds LS1 4LX
Company Secretary 
J Samuel FCA
Company number 
650447
Registered address
Yew Trees 
Main Street North 
Aberford 
West Yorkshire 
LS25 3AA
Website address 
www.renewholdings.com
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Annual Report and Accounts 2010
www.renewholdings.com
82
Shareholder information
Shareholder information
Annual General Meeting 26 January 2011
Results Announcement of interim results – May 2011 
  Preliminary announcement of full year results – November 2011 
Dividend re-investment plan 
For any shareholders who wish to re-invest dividend payments in the Company, a facility is provided by Capita IRG Trustees Ltd in 
conjunction with Capita Registrars. Under this facility, cash dividends are used to purchase additional shares. Any shareholder requiring 
further information should contact Capita on 0871 664 0381 (calls cost 10p per minute plus any network extras from within the UK; lines are 
open from 9am to 5.30pm Monday to Friday). If calling from overseas +44(0)208 639 3402. Fax 0208 639 1023. Email shares@capitaregistrars.com 
or visit www.capitaregistrars.com.
Boiler room fraud 
In recent years many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning 
investment matters. These are typically from overseas based “brokers” who target UK shareholders, offering to sell them what turn out to be 
worthless or high risk shares in US or UK investments. These operations are commonly known as “boiler rooms”. Shareholders are advised to be 
wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. If you receive any unsolicited investment advice:
 Check that they are properly authorised by the FSA by visiting www.fsa.gov.uk/register/
 Report the matter to the FSA either by calling 0300 500 5000 or visiting www.moneymadeclear.fsa.gov.uk
If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FSA 
can be contacted by completing an online form at www.fsa.gov.uk. More detailed information on this or similar activity can be found on the FSA 
website www.moneymadeclear.fsa.gov.uk.
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83 Renew Holdings plc  
Annual Report and Accounts 2010
Notice of annual general meeting
Notice is hereby given that the fifty first Annual General Meeting of the Company will be held at the offices of Brewin Dolphin Securities Ltd, 
34 Lisbon Street, Leeds LS1 4LX on Wednesday 26 January 2011 at 11.00am to consider and, if thought fit, pass resolutions 1 to 6 below as 
ordinary resolutions and resolutions 7 and 8 below as special resolutions. 
The meeting will consider the following business:
Ordinary business
1.  T o receive and adopt the audited financial statements for the year ended 30 September 2010 and the Reports of the Directors and 
Auditors thereon. 
2.  T o declare a final dividend of 2p per share.
3. T o re-elect Brian May, who retires as a director in accordance with the Company’s Articles of Association and offers himself for re-election. 
 (Explanatory note: Biographical details of Brian May are included in the Directors’ Report in the Annual Report and Accounts).
4. T o approve the Remuneration Report for the year ended 30 September 2010.    
5. T o re-appoint KPMG Audit Plc as Auditors of the Company.
6. T o authorise the Directors to determine the Auditors’ remuneration.
Special business
7.  THAT the Directors be generally and unconditionally authorised pursuant to and in accordance with Section 551 of the Companies Act 
2006 (“Act”) to exercise all the powers of the Company to allot shares or grant rights to subscribe for or to convert any security into shares 
up to a nominal amount of £299,495, such authority to apply in substitution for all previous authorities pursuant to Section 80 of the 
Companies Act 1985 or Section 551 of the Act and to expire at the end of the Annual General Meeting in 2012 or on 26 April 2012 
whichever is the earlier (unless renewed, varied or revoked by the Company prior to or on such date) but, in each case, so that the 
Company may make offers and enter into agreements during the relevant period which would, or might, require shares to be allotted or 
rights to subscribe for or to convert any security into shares to be granted after the authority ends.
  (Explanatory note: The purpose of resolution 7 is to renew the Directors’ power to allot shares. The authority to be given by resolution 7 will allow 
the Directors to allot new shares and grant rights to subscribe for, or convert other securities into shares to a nominal value of the amount stated, 
which is equivalent to 5% of the total issued Ordinary Share capital of the Company, as at 23 November 2010.)
8.  THAT , subject to the passing of resolution 7 above, the Directors be and are hereby given the general power pursuant to Section 570 of the 
Act to allot equity securities (as defined by Section 560(1) of the Act) wholly for cash pursuant to the authority given in resolution 7 above, as 
if Section 561(1) of the Act did not apply to any such allotment, provided that this power shall be limited to the allotment of equity securities: 
 (a)  in connection with an offer by way of rights issue to holders of Ordinary Shares in proportion (as nearly may be practicable) to their 
respective holdings of such shares, but subject to such exclusions or other arrangements as the Directors may deem necessary or 
expedient in relation to fractional entitlements, record dates, or any legal or practical problems under the laws of any territory, or the 
requirements of any regulatory body or stock exchange; and
 (b) otherwise than in connection with a rights issue, up to an aggregate nominal amount of £299,495.
  The power granted by this resolution will expire on 26 April 2012 or, if earlier, the conclusion of the Company’s next Annual General 
Meeting (unless renewed, varied or revoked by the Company prior to or on such date) save that the Company may, before such expiry 
make offers or agreements which would or might require equity securities to be allotted after such expiry and the Directors may allot 
equity securities in pursuance of any such offer or agreement notwithstanding that the power conferred by this resolution has expired.
  This resolution revokes and replaces all unexercised powers previously granted to the Directors to allot equity securities as if either 
Section 89(1) of the Companies Act 1985 or Section 561(1) of the Act did not apply but without prejudice to any allotment of equity 
securities already made or agreed to be made pursuant to such authorities.
  (Explanatory note: By Resolution 8 the Directors are seeking renewal of the power to allot shares for cash for the purposes of a rights 
issue or otherwise than in connection with a rights issue, limited to the issue of shares up to an aggregate nominal value of £299,495, 
being 5% of the issued Ordinary Share capital of the Company at 23 November 2010. If given, this power will expire at the Company’s 
AGM in 2012 or on 26 April 2012, whichever is the earlier.)
By order of the Board
J Samuel FCA
Company Secretary
23 November 2010
Renew Holdings plc 
Registered Office: Yew Trees, Main Street North, Aberford, West Yorkshire LS25 3AA.
Notice of annual general meeting
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Annual Report and Accounts 2010
www.renewholdings.com
84
Notes to the notice of annual general meeting
Notes
1.  A member of the Company must be entered on the Register of Members at 6pm on 24 January 2011 (or the date which is two days prior 
to any adjourned AGM) in order to be entitled to attend and vote at the meeting as a member in respect of those shares.
2.  A member entitled to attend and vote at the AGM may appoint one or more proxies (who need not be a member of the Company) to 
attend and to speak and to vote on his or her behalf whether by show of hands or on a poll. A member can appoint more than one proxy 
in relation to the meeting, provided that each proxy is appointed to exercise the rights attaching to different shares held by him.
3.  Proxy forms and the powers of attorney or other authority, if any, under which they are signed need to be deposited at the office of the 
Company’s Registrars, Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU not later than 48 hours before 
the time appointed for the meeting. Shareholders wishing to vote online should go to www.capitashareportal.com and follow the 
instructions. Completion of a proxy or any CREST proxy instruction (as described in paragraph 5 below) will not preclude a shareholder 
from attending and voting in person at the meeting.
4.  A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all its powers as a 
member provided that no more than one corporate representative exercises powers over the same share.
5.  CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so by using 
the procedures described in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST 
members who have appointed a service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able 
to take the appropriate action on their behalf. 
  In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a “CREST 
Proxy Instruction”) must be properly authenticated in accordance with the specifications of CREST’s operator, Euroclear UK & Ireland 
Limited (“Euroclear”) and must contain the information required for such instruction, as described in the CREST Manual. The message, 
regardless of whether it constitutes the appointment of a proxy or is an amendment to the instruction given to a previously appointed 
proxy must, in order to be valid, be transmitted so as to be received by the issuer’s agent (ID RA10) by 11am on 24 January 2011. For this 
purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Application 
Host) from which the issuer’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST . After this 
time any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means. 
  CREST members and, where applicable, their CREST sponsors, or voting service providers should note that Euroclear does not make 
available special procedures in CREST for any particular message. Normal system timings and limitations will, therefore, apply in relation 
to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a 
CREST personal member, or sponsored member, or has appointed a voting service provider, to procure that his CREST sponsor or voting 
service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by 
any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting system providers are 
referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. 
  The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated 
Securities Regulations 2001.
6.  As at 23 November 2010 (being the last business day prior to the publication of this notice) the Company’s issued share capital consists 
of 59,898,927 ordinary shares, carrying one vote each. Therefore, the total voting rights in the Company as at such date are 59,898,927.
7. A copy of this notice can be found at www.renewholdings.com
_01_RNWH_ar10_back_(DS).indd   51 21/12/2010   08:46:41 Shepley Engineers
Robinson House 
Westlakes Science Park 
Moor Row 
Cumbria 
CA24 3HY 
Tel: 01946 599 022
VHE
Phoenix House 
Hawthorn Park 
Coal Road 
Seacroft 
Leeds 
LS14 1PQ 
Tel: 0113 273 9200
Seymour
30–34 Navigation Point 
Hartlepool 
TS24 0UQ 
Tel: 01429 223 521
Britannia Civil Engineering
Britannia House 
Staverton Technology Park 
Cheltenham 
Gloucestershire 
GL51 6TQ 
Tel: 01452 859 880
YJL Infrastructure
39 Cornhill 
London 
EC3V 3NU 
Tel: 020 7522 3220
Walter Lilly
Waddon House 
283 Stafford Road 
Croydon 
Surrey 
CR0 4NN 
Tel: 020 8730 6200
Britannia Construction
Britannia House 
Staverton Technology Park 
Cheltenham 
Gloucestershire 
GL51 6TQ 
Tel: 01452 859 880
Allenbuild (North West)
Jubilee House 
Waterside Drive 
Wigan  
WN3 5AZ 
Tel: 01942 246 265
Allenbuild (South East)
Unecol House 
819 London Road 
North Cheam 
Surrey 
SM3 9BN 
Tel: 020 8335 4800
Allenbuild (North East/
Midlands)
Phoenix House 
Hawthorn Park 
Coal Road 
Seacroft 
Leeds 
LS14 1PQ 
Tel: 0113 237 5600
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Renew Holdings plc
Yew Trees 
Main Street North 
Aberford 
West Yorkshire LS25 3AA 
tel: 0113 281 4200 
fax: 0113 281 4210 
web: www.renewholdings.com
Company Number: 650447 
Registered in England & Wales
Renew Holdings plc Annual Report and Accounts 2010
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