Renew Holdings plc Annual Report and Accounts 2011
Delivering 
Engineering Services 
to UK Infrastructure
Renew Holdings plc Annual Report and Accounts 2011 Highlights
  Engineering Services revenue up 39% to £176.7m 
(2010: £127.4m)
	 	 Engineering 	 Services 	 adjusted 	 operating 	 profit* 	
up 78% to £7.4m (2010: £4.2m) 
  Group order book of £285m (2010: £304m) including 
Engineering Services order book up 118% to £179m 
(2010: £82m) 
  Acquisition of Engineering Services business Amco 
now fully integrated
  Net debt of £6.8m in line with expectations 
following acquisition
* 	 Pre-exceptional 	 items 	 and 	 amortisation 	 charges
Operational highlights Financial highlights
3.0p
(2010: 3.0p)
Dividend per share
9.6p
(2010: 5.3p)
Adjusted earnings per share*
£356.7m
(2010: £290.4m)
Revenue
£8.1m
(2010: £4.6m)
Adjusted profit before income tax*
2011 has been transformational for Renew.
Engineering Services now accounts for 
over 60% of on-going Group revenue 
compared with 15% five years ago, 
repositioning Renew as an Engineering 
Services Group supporting UK infrastructure.
Visit us online at 
www.renewholdings.com Group overview 01
01
Renew Holdings plc
Annual Report and Accounts 2011
Group overview 01 Corporate governance 24 Review of operations 14
Group overview
This section gives an overview of the Group, including 
results statements and strategy information.
IFC Highlights
02 Renew at a glance
04 Chairman’s statement
06 Chief Executive’s review
10 Financial review
12 Our strategy
Review of operations
This section looks at the Group’s target markets and 
highlights our achievements in these markets during 
the year.
16 Energy
18 Environmental
20 Infrastructure
22 Specialist Building
Corporate governance
This section outlines the Group’s Corporate 
Governance procedures.
26 Corporate social responsibility
30 Directors’ report
34 Directors’ remuneration report
37 Corporate governance
39  Statement of directors’ responsibilities
This section details the Group’s accounts for the 
year ended 30 September 2011.
42 Independent auditor’s report
43 Group income statement
44  Group statement of comprehensive income
44  Group statement of changes in equity
45 Group balance sheet
46 	 Group 	 cashflow 	 statement
47 Notes to the accounts
67 Company balance sheet
68 Notes to the company accounts
74 	 	 Directors, 	 officers 	 and 	 advisors
75 Shareholder information
Accounts
Accounts 40 Renew at a glance
02
Renew Holdings plc
Annual Report and Accounts 2011
For over 200 years we have 
been delivering our expertise 
in the engineering and building 
sectors across the UK…
the past 5 years have seen us 
progressively shift the balance of 
our operations into higher margin 
Engineering Services…
Our key revenue streams Our history and where we operate
2006
2011
 
Engineering Services 
 Specialist Building
We provide our integrated Engineering Services 
nationwide. Find out more about our operations 
at www.renewholdings.com.
7
Individually branded 
subsidiary businesses
Percentage of ongoing 
Group revenue
2,033
Number of employees
Identifying our strongest revenue streams
The Engineering Services markets in which the Group operates 
engage our workforce in industries which are mainly governed by 
regulation. Consequently, our Engineering Services activities have 
greater security of funding and more predictable work streams.
Over two centuries of expertise
Renew Holdings has a history spanning over 200 years. The company 
was founded in 1786 originally as YJ Lovell by Young James Lovell, 
a surveyor. The company went public in 1968. In the late 1990s 
and early part of this century the Group reorganised its activities 
substantially, selling and acquiring various businesses. Following 
the appointment of Roy Harrison as Chairman in 2004 and of Brian 
May as Chief Executive in 2005, the Group was renamed Renew 
Holdings plc. In 2006, the Group established its strategy to focus 
on the development of Engineering Services.
Our position is strengthened by targeting markets 
mainly governed by regulation and therefore 
non‑discretionary spending plans. Most of our work is 
undertaken through long‑term framework agreements 
which give good visibility of sustainable earnings. 
63%
15%
We deliver Engineering 
Services to UK 
Infrastructure 03
Renew Holdings plc
Annual Report and Accounts 2011
03 Group overview
this shift in revenue, through 
organic growth and acquisition, 
has provided the opportunity 
to capitalise on our existing 
markets and beyond…
transforming Renew into an 
Engineering Services Group 
supporting UK infrastructure.
The markets we target A multidisciplinary offering
For a full review of our market sectors and the potential 
they offer, turn to the respective pages below:
To learn more about how the transformation of 
our business aligns with our target market sectors, 
turn to pages 16–23.
We work across the energy sector in the nuclear, wind, hydro, 
biomass and traditional power generation sectors nationwide. 
Our skills are employed in supporting the power generation, 
transportation and distribution functions.
  Energy pages 16–17
W e 	 specialise 	 in 	 the 	 water , 	 flood 	 alleviation, 	 coastal 	 defence 	 and 	
land remediation sectors. The environmental projects we undertake 
for our clients leave a lasting positive impact on the communities 
we work in. 
  Environmental pages 18–19
Working nationwide for the rail industry, our work ranges from 
critical and planned asset support and renewal to our market 
leading experience in tunnel refurbishment.
  Infrastructure pages 20–21
Working in the key target markets in the south of new build social 
housing, high quality residential and retail, our Specialist Building 
operations are in stable markets with good visibility of earnings. 
  Specialist Building pages 22–23
Renew
Fully integrated multidisciplinary 
Engineering Services
Engineering Services Group 
supporting UK Infrastructure
The markets in which we operate are mainly 
governed by regulation, many with long-term 
non-discretionary spending plans 04
Renew Holdings plc
Annual Report and Accounts 2011 Chairman’s statement
“The strategic targets set in 2009 
have been successfully achieved 
a year ahead of schedule.”
R J Harrison OBE, Chairman
Summary
  2011 saw a decisive shift of the balance 
of the Group’s activities into the 
Engineering Services sector in line 
with our established strategy. 
  Amco has integrated very well into 
the Group and has performed in line 
with expectations.
  The Engineering Services order book 
was £179m (2010: £82m), an increase 
of 118%.
  Looking ahead, the Board has an 
ambition that the Group will have 
turnover of over £500m by 2014, 
achieved by acquisition and organic 
growth, with a target that Engineering 
Services will account for at least 70% 
of Group revenue and with Group 
operating margin of more than 3%.
Introduction
2011 saw a decisive shift of the balance of the 
Group’s activities into the Engineering Services 
sector in line with our established strategy.
The acquisition of Amco Group Holdings 
Limited (“ Amco”) in February 2011, together 
with continued organic growth and the decision 
to withdraw from non‑specialist public sector 
building markets, has accelerated the Board’s 
repositioning of Renew as an Engineering 
Services Group supporting UK infrastructure.
In 2009, the Board set out its strategy to 
deliver at least 50% of Group revenue from 
its Engineering Services activities with Group 
operating	profit	of	over	2%	by	2012.	These	
targets have been achieved one year ahead 
of 	 plan 	 with 	 Group 	 operating 	 profit 	 margin 	 for 	
the year of 2.2% and Engineering Services 
accounting for 52% of Group revenue in the 
second half of the year. 
Results
The Group has recorded results for the year 
ended 30 September 2011 which are in line 
with market expectations.
Group revenue was £356.7m (2010: £290.4m). 
Profit 	 before 	 income 	 tax 	 prior 	 to 	 exceptional 	
items and amortisation charges was £8.1m 
(2010: £4.6m). Adjusted earnings per share, 
calculated prior to exceptional items and 
amortisation charges, was 9.6p (2010: 5.3p).
Engineering Services revenue was £176.7m 
(2010: £127.4m), an increase of 39%, with 
operating	profit	prior	to	exceptional	items	
increasing by 78% to £7.4m (2010: £4.2m). 
These results include seven months of Amco’s 
trading. Amco has integrated very well into 
the Group and has performed in line 
with expectations. 
Specialist Building revenue increased to 
£178.9m (2010: £163.1m), with operating 
profit 	 prior 	 to 	 exceptional 	 items 	 of 	 £1.9m 	
(2010: £1.8m). 
The Group’s contracted order book 
at 30 September 2011 stood at £285m 
(2010: £304m). This reduction is entirely 
due to our planned lower levels of activity in 
Specialist Building. The Engineering Services 
order book was £179m (2010: £82m), 
an increase of 118%. 
At 30 September 2011, the Group’s net debt 
was £6.8m comprising a loan of £12.5m and 
cash of £5.7m (2010: net cash £16.2m). The 
loan	and	the	decrease	in	cash	reflect	the	
Amco acquisition.
Dividend
The	Board	is	proposing	a	final	dividend	
at 2.0p per share, maintaining the full year 
dividend at 3.0p (2010: 3.0p). The dividend will 
be paid on 23 February 2012 to shareholders 
on the register as at 27 January 2012. 
Strategy
The strategic targets set in 2009 have 
been successfully achieved a year ahead 
of schedule. Looking ahead, the Board 
has an ambition that the Group will have 
turnover of over £500m by 2014, achieved 
by acquisition and organic growth, with a 
target that Engineering Services will account 
for at least 70% of Group revenue and with 
Group operating margin of more than 3%. 
Our emphasis is to secure sustainable 
positions on framework agreements, 
focusing on areas of non‑discretionary 
spend and selective capital projects. 05
Renew Holdings plc
Annual Report and Accounts 2011
Group overview 05
In Specialist Building, our retained businesses 
operate in stable markets. With reduced levels 
of activity and greater focus on our target 
markets, the Board expects this business to 
deliver an improvement in operating margin. 
We will continue to manage risk carefully, 
maintaining selectivity of opportunities in 
markets where the Group has expertise 
and experience. 
Board
The Board welcomes David Forbes, who joined 
on 1 June 2011 as a non‑executive director. 
David’s extensive experience in corporate 
advisory services with NM Rothschild & Son 
Limited will assist the Board in its ambition 
to secure further suitable acquisitions 
in the Engineering Services sector. 
Outlook
Although the overall economic outlook remains 
uncertain, the Board believes that spending 
in infrastructure markets is likely to continue 
to offer opportunities. The decision to focus 
on key markets which are mainly governed 
by regulation enables the Group to take 
advantage of growth anticipated in the Energy, 
Environmental and Infrastructure market 
sectors. This is evidenced by the Group’s 
strong 	 confirmed 	 order 	 book 	 which 	 underpins 	
our expectation of further progress in 2012. 
R J Harrison OBE 
Chairman
22 November 2011
“The Board believes that spending 
in infrastructure markets is likely 
to continue to offer opportunities. 
The decision to focus on key 
markets which are mainly governed 
by regulation enables the Group to 
take advantage of growth anticipated 
in the Energy, Environmental and 
Infrastructure market sectors.”
Over 200 years 
of engineering 
expertise
1786
Founded originally as YJ Lovell, 
by Young James Lovell, a surveyor 
who in 1786 acquired the 
century -old 	 Marlow 	 building 	 firm 	
of Thomas Corby. Young James 
was 	 a 	 man 	 of 	 great 	 flair 	 who 	 made	
the most of his opportunities and 
gave the company the impetus to 
continue developing over the next 
century.
1968
The company went public in 1968 
and over the following years the 
Group’s activities expanded to 
include a Building Division, Plant 
Hire Operation, Developments 
Division, Timber Operation, 
and overseas interests in 
land development.
1998
In the late 1990s and early 
part of this century, the Group 
reorganised its activities 
substantially, selling and acquiring 
various businesses to create a 
Specialist Construction Group.
2005
Following the appointment of 
Roy Harrison as Chairman in 2004 
and of Brian May as Chief Executive 
in 2005, the Group was renamed 
Renew Holdings plc and started 
to develop its Specialist 
Engineering strategy.
2011
Following the acquisition of 
Amco, Renew is positioned as a 
Group providing Engineering 
Services to UK infrastructure 
through its individually branded 
businesses.
Our history 06
Renew Holdings plc
Annual Report and Accounts 2011 Chief Executive’s review
Renew is now positioned as an Engineering 
Services Group supporting UK infrastructure. 
2011 	 has 	 been 	 a 	 significant 	 year 	 for 	 the 	 Group 	
which, with further organic growth and the 
acquisition of Amco, has achieved its target 
of shifting the balance of operations into 
Engineering Services. 
Engineering Services
Engineering Services revenue was £176.7m 
(2010: £127.4m) and now accounts for over 
60% of on‑going Group revenue and over 
80% 	 of 	 operating 	 profit. 	 Operating 	 margins 	
improved to 4.2% (2010: 3.3%).
In Engineering Services, Renew targets the 
key markets of Energy, Environmental and 
Infrastructure. These markets, which are 
mainly	governed	by	regulation,	benefit	from	
non‑discretionary spending patterns and 
long‑term visibility of committed funding. The 
Group focuses on the renewal, refurbishment 
and maintenance of essential operational 
assets providing an integrated engineering 
service through its local, directly employed 
delivery teams. It remains the Group’s strategy 
to grow our presence in these markets, both 
organically and by acquisition. The Group 
targets earnings enhancing acquisitions in 
markets with long‑term funding and whose 
skills are complementary to those already 
offered by the Group. 
Energy
Renew continues to operate in the nuclear, 
gas, coal, wind, hydro and biomass power 
generation sectors. Much of the work is 
delivered through 24 framework agreements, 
primarily for non‑discretionary engineering 
maintenance work.
In the Nuclear sector, where we operate at 
9 nuclear licenced sites in the UK, we have 
experienced record revenue during the year. 
The Nuclear Decommissioning Authority has 
confirmed 	 expenditure 	 of 	 £3bn 	 per 	 annum 	 for 	
the next 4 years, underpinned by committed 
Government funding. The sites where the 
Group is active have been allocated over 66% 
of 	 this 	 funding, 	 with 	 over 	 50% 	 at 	 Sellafield, 	
where we remain the largest mechanical 
and electrical contractor.
At 	 Sellafield, 	 the 	 Multi 	 Discipline 	 Site 	
Wide framework has been extended to 
September 2012. In addition, we were also 
appointed to the Decommissioning and 
Demolition framework, which is secured 
until March 2015, with an advertised spend 
of over £30m per annum. Work continues 
on major project programmes with good 
progress being made on the Evaporator D, 
Encapsulated Product Store and 
Separation Area Ventilation schemes. 
At 	 the 	 W estinghouse 	 Springfields 	 F uels 	 Site, 	
we are nearing the successful completion of 
a major plant outage project and, during the 
year, we secured a 2 year decommissioning 
contract associated with a redundant Fuel 
Manufacturing Facility.
We continue to support the consortia involved 
in the Nuclear New Build programme where 
our skills in stainless steel fabrication, materials 
handling and mechanical and electrical 
services will be increasingly in demand.
In other Energy sectors, we are currently active 
at 5 power stations and 2 wind farms, where 
framework agreements provide maintenance 
services and enable access to larger capital 
projects. There are increasing opportunities 
“2011 has been a significant year 
for the Group which, with further 
organic growth and the acquisition 
of Amco, has achieved its target of 
shifting the balance of operations 
into Engineering Services.”
Brian May, Chief Executive
Summary
  Renew is now positioned as 
an Engineering Services Group 
supporting UK infrastructure. 
  The Group focuses on the renewal, 
refurbishment and maintenance 
of essential operational assets.
  The development of our Engineering 
Services business has also improved 
Group operating margin.
  The Group targets earnings enhancing 
acquisitions in markets with long‑term 
funding and whose skills are 
complementary to those already 
offered by the Group. 07
Renew Holdings plc
Annual Report and Accounts 2011
Group overview 07
in both the wind and biomass sectors and 
we have also recently been appointed to 2 
hydroelectric generation framework agreements.
Environmental 
The Group has considerable expertise in 
the 	 water , 	 flood 	 alleviation, 	 coastal 	 defence 	
and land remediation sectors, providing 
multidisciplinary engineering services 
across 16 framework agreements. 
Northumbrian Water Limited remains our 
largest client in the Water sector where our 
relationship extends for over 20 years. In the 
year, we were reappointed under AMP5 to the 
major waste water project framework which 
runs initially to 2015, with an intention to extend 
for a further 6 years. Importantly, we have also 
been appointed to a number of non‑ discretionary maintenance framework 
agreements. These include 2 new framework 
agreements for trunk mains cleansing and 
water distribution, in addition to our established 
sewer maintenance framework agreement, 
where we are experiencing increased volumes. 
In Land Remediation, VHE has recently been 
appointed to 3 framework agreements with 
National Grid, continuing our long standing 
relationship with this client. These framework 
agreements are for major and minor soils 
remediation projects nationwide and are for 
a 3 year period, with an option to renew for 
a further 2 years. During the year, a number 
of projects were undertaken involving the 
remediation of former gas work sites, including 
work at St Helier for the Royal States of Jersey. 
Similar work was carried out for National Grid 
at Neepsend and Partington in Manchester, 
the 	 first 	 large 	 scale 	 cluster 	 project 	 in 	 the 	 UK , 	
under the established framework agreement.
“Over the last 5 years, our Engineering 
Services activities have grown organically 
by 93% and, when combined with our 
acquisitions, now represent annual revenue of 
more than £200m as well as providing 80% of 
the 	 Group’s 	 operating 	 profit.”
Engineering Services performance
93%
Organic growth in Engineering Services since 2006
39%
Engineering Services revenue up
The development of our Engineering 
Services business has created a platform 
of sustainable revenue generated from 
over 50 framework agreements with 
major clients, most of which operate 
in regulated markets.
118%
Engineering Services order book up
4.2%
Engineering Services operating profit margin 08
Renew Holdings plc
Annual Report and Accounts 2011 Chief Executive’s review
Environmental continued
We continue to provide civil, mechanical and 
electrical services under 5 minor works and 
river maintenance framework agreements 
for the Environment Agency. During the year, 
we maintained our long standing relationship 
with Cleveland Potash where we secured 
a shaft repair contract in addition to our 
ongoing maintenance activities.
Infrastructure
The Group continues to carry out small value 
highways and industrial projects across the 
UK, both under framework arrangements 
and individually.
During the year, the majority of revenue has 
been generated in the rail sector where we are 
the leading provider of engineering maintenance 
works to Network Rail. This has been recently 
recognised with the award of Infrastructure 
Maintenance T eam of the Year at the National 
Rail Awards.
Our activities in the rail sector involve the 
Group in the provision of integrated civil, 
mechanical and electrical engineering services 
where the focus is on renewal, refurbishment 
and maintenance through 8 framework 
agreements and individual capital projects.
In May, we were appointed by Network Rail 
to the Building and Civils Delivery Partnership 
(“BCDP”) framework agreements with an 
advertised value of £100m per annum. Amco 
was the only contractor appointed nationally. 
These framework agreements continue for 
3 years, with an option to extend for a further 
2 years. Amco is also one of 4 contractors on 
the 	 National 	 Electrification 	 and 	 Plant 	 framework 	
agreement, delivering a maintenance and 
renewal programme on the network for 
Network Rail throughout the UK. 
YJL Infrastructure has now been successfully 
integrated with Amco to maximise our 
response to the BCDP framework and 
to extend our capability to deliver services 
to a range of clients in the South East.
During the year, a number of individual 
capital projects were completed, including 
refurbishment work at Blackburn Station and 
the major station modernisation schemes at 
Marble Arch and Notting Hill Gate for London 
Underground. Amco has particular expertise, 
and is the market leader, in tunnel refurbishment 
work for Network Rail, having carried out 
numerous schemes over the last 10 years 
and having recently been awarded the major 
repair project in the Ore T unnel near Hastings.
Specialist Building
The Group now has three Specialist Building 
businesses in the South which target the New 
Build Social Housing, High Quality Residential 
and Retail markets. These markets, in which 
we have extensive experience and expertise, 
provide sustainable opportunities for the future. 
Specialist Building revenue was £178.9m 
(2010: £163.1m) with operating margin 
maintained at 1.1%.
In New Build Social Housing, the Government 
has 	 reconfirmed 	 its 	 commitment 	 to 	 reduce 	 the 	
significant 	 housing 	 shortage 	 in 	 the 	 South 	 East, 	
where the Group has 13 framework agreements 
with leading Housing Associations which 
provide access to a £600m annual market 
spend. Included are 3 new framework 
appointments with Estuary Housing Association, 
Hyde Housing Association and London and 
Quadrant 	 Housing 	 T rust, 	 where 	 the 	 first 	 project 	
has commenced on site at Lynton Road. 
“The acquisition of Amco has 
accelerated the transformation in 
the shape of the Group and offers 
Renew a range of opportunities 
for further growth in Engineering 
Services markets.” 09
Renew Holdings plc
Annual Report and Accounts 2011
Group overview 09
In High Quality Residential, the Group’s activities 
are focused in London and the Home Counties 
where the market remains strong. Our experience 
in this sector , in particular our temporary works 
engineering capability, continues to differentiate 
our services and provide opportunities. In the 
year , good progress was made on contracts 
in Mayfair and Belgravia, with new awards 
received for projects in Knightsbridge, 
Kensington and Chelsea.
In Retail, we were recently awarded a project 
to construct a new T esco store at Widnes which 
is on‑site and progressing well. A number of 
other projects were also successfully carried 
out during the year for T esco at Portland, 
Risca and Sandwell.
People
The safety of our employees and those 
who work with us continues to be the Group’s 
main priority. The results of our commitment 
to safety can be seen in the continued 
improvement in the Group’s Accident 
Incidence Rate which has progressively 
reduced by 77% since 2005.
The 	 strong 	 financial 	 results 	 demonstrate 	 the 	
skills and determination of everyone who works 
for Renew. The Board would like to thank its 
employees for their continued hard work and 
commitment to the success of the Group.
Summary
The acquisition of Amco has accelerated the 
transformation in the shape of the Group and 
offers Renew a range of opportunities for 
further growth in Engineering Services markets. 
Over 	 the 	 last 	 five 	 years, 	 our 	 Engineering 	 Services 	
activities have grown organically by 93% and, 
“The results of our commitment 
to safety can be seen in the continued 
improvement in the Group’s Accident 
Incidence Rate which has progressively 
reduced by 77% since 2005.”
when combined with our acquisitions, 
now represent annual revenue of more 
than £200m as well as providing 80% 
of 	 the 	 Group’s 	 operating 	 profit. 	
The development of our Engineering Services 
business has also improved Group operating 
margin and has created a platform of 
sustainable revenue generated from over 
50 framework agreements with major clients, 
most of which operate in regulated markets. 
These framework agreements, together with 
expected extensions and renewals, provide 
good visibility of income and quality of earnings 
both for the coming year and beyond.
Brian May 
Chief Executive
22 November 2011
   Energy  34%
  Infrastructure  37%
  Environmental  29%
Engineering Services revenue 
by market 10
Renew Holdings plc
Annual Report and Accounts 2011 Financial review
“Group revenue from ongoing 
operations was £356.7m 
(2010: £290.4m) with a profit 
before tax of £8.1m (2010: £4.6m) 
prior to exceptional items and 
amortisation charges.”
John Samuel, Group Finance Director
Results
Group revenue from ongoing operations was 
£356.7m 	 (2010: 	 £290.4m) 	 with 	 a 	 profit 	 before 	
tax of £8.1m (2010: £4.6m) prior to exceptional 
items and amortisation charges. A tax charge 
of £2.4m (2010: £1.4m), none of which is 
payable, 	 resulted 	 in 	 a 	 profit 	 after 	 tax 	 for 	
the year of £5.7m (2010: £3.2m) prior to 
exceptional items and amortisation charges. 
Exceptional items in 2011 include redundancy 
and restructuring costs of £3.7m associated 
with the decision to withdraw from non‑specialist 
public sector building markets. £1.3m of 
exceptional costs were incurred in connection 
with the acquisition of Amco and £0.2m in 
connection 	 with 	 the 	 Office 	 of 	 F air 	 T rading 	
(“OF T”) 	 fine 	 which 	 is 	 fully 	 detailed 	 in 	 Note 	 23. 	
Additionally, £0.4m (2010: £0.3m) of amortisation 
charges were incurred. After tax, exceptional 
items 	 and 	 amortisation, 	 the 	 profit 	 for 	 the 	 year 	
was £1.3m (2010: £2.7m).
Cash 
The Group arranged a £15m three year 
term loan to fund the acquisition of Amco, 
also using £7.2m of its own cash resources. 
During the year, £2.5m of repayments have 
been made reducing the loan balance to 
£12.5m at the year end. Our cash balances 
stood at £5.7m (2010: £16.2m) at the year 
end 	 with 	 other 	 non-recurring 	 outflows 	 being 	
associated with the restructuring costs 
and 	 the 	 settlement 	 of 	 the 	 OF T 	 fine. 	 As 	 a 	
result, the Group’s net debt position as at 
30 September 2011 is £6.8m. The Group 
has complied with the covenants associated 
with this loan.
The Group continues to have a £5m overdraft 
facility which has been unused throughout the 
year. As a result of the reduction in revenue 
in Specialist Building, amounts received in 
advance from construction contract customers 
reduced from £8.0m to £5.7m. As the balance 
of the Group’s revenue continues to shift 
towards Engineering Services, the positive 
working capital characteristics of Specialist 
Building continue to be diluted, although 
the Group does not expect working capital 
to consume cash over the next year.
Acquisition of Amco Group 
Holdings Limited
Amco was acquired for a consideration of 
£27.1m with £6.2m of this being funded by the 
sale back to the vendors of a freehold property 
for £1.6m and the repayment of a debt due 
by a company controlled by the vendors 
of £4.6m, leaving the net cost to Renew at 
£20.9m. Professional fees of £1.3m were 
incurred 	 which 	 brings 	 the 	 total 	 cash 	 outflow 	
on acquisition to £22.2m.
The acquisition has caused a substantial 
increase in the Group’s intangible assets which 
have risen to £29.7m from £9.7m. The Board 
has determined that £3.0m of the intangible 
assets acquired with Amco represent the value 
of customer relationships and contractual 
rights and this asset is being amortised over 
a six year period. The Board also reviewed 
the assumptions adopted by the previous 
directors of Amco and decided to adopt 
different actuarial assumptions in respect 
of the Amco Pension Scheme, particularly in 
respect of mortality rates. This has given rise 
to a fair value adjustment which reduced the 
carrying value of the Amco Pension Scheme 
asset from £2.6m to £0.7m on acquisition. 
The acquisition did not give rise to any other 
material fair value adjustments although this 
will be reviewed one year after acquisition in 
accordance with IFRS 3.
Summary
  The Group arranged a £15m three 
year term loan to fund the acquisition 
of Amco, also using £7.2m of its own 
cash resources.
  The Group’s net debt position as at 
30 September 2011 is £6.8m. The Group 
has complied with the covenants 
associated with this loan.
   The Group continues to have a £5m 
overdraft facility which has been unused 
throughout the year.  11
Renew Holdings plc
Annual Report and Accounts 2011
Group overview 11
Pension schemes
The IAS 19 valuation of the Lovell Pension 
Scheme, which was closed to new members 
in 	 2000, 	 has 	 resulted 	 in 	 a 	 small 	 deficit 	 of 	 £0.1m 	
(2010: £1.1m surplus). During the year, the 
Board, in conjunction with the Trustees of the 
Lovell Scheme, completed a buy‑in of part of the 
pensioner liabilities of the scheme. This measure, 
which was completed without any further cash 
contribution to the scheme by the Group, has 
reduced the risks associated with those liabilities 
and, at the year end, the annuities purchased 
represented 38% of the scheme’s total liabilities. 
In 	 accordance 	 with 	 the 	 scheme 	 specific 	 funding 	
requirements of the Pensions 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 T rustees of the 
scheme on the level of future contributions which 
are currently approximately £3.0m per annum 
inclusive of costs. The next triennial valuation will 
be carried out as at 31 March 2012. 
The IAS 19 valuation of the Amco Pension 
Scheme shows a surplus of £1.1m. In accordance 
with 	 the 	 scheme 	 specific 	 funding 	 requirements 	
of the Pensions Act 2005, and following the 
triennial valuation of the scheme which was 
carried out as at 31 December 2007, the Board 
has an agreement with the Trustees of the 
scheme on the level of future contributions 
which are currently approximately £0.2m per 
annum inclusive of costs. The next triennial 
valuation is being carried out currently as at 
31 December 2010. 
Due to the impact of actuarial losses 
measured in these schemes in the year, 
£3.9m, net of deferred tax, has been charged 
to the statement of comprehensive income, 
reducing the Group’s net assets accordingly. 
The 	 actuarial 	 losses 	 reflect 	 the 	 reduced 	
value of investments held partly offset by 
improvements in corporate bond yields. 
Taxation
A deferred tax asset included in non‑current 
assets of £3.1m (2010: £3.3m) is carried in 
the balance sheet, which principally results 
from the likely future utilisation of tax losses. 
A deferred tax liability related to the Amco 
defined 	 benefit 	 pension 	 scheme 	 of 	 £0.3m 	
is shown in non‑current liabilities. The 
remaining deferred tax liability of £0.8m 
relates to fair value adjustments arising 
on the Amco acquisition.
The current year UK tax charge is £nil 
(2010: £0.6m). There is a prior year adjustment 
repayment leading to a total current tax credit 
of £0.4m (2010: £0.6m charge). The deferred 
tax charge of £1.6m (2010: £0.7m) is 
attributable 	 primarily 	 to 	 the 	 defined 	 benefit 	
pension schemes. The total tax charge for the 
year of £1.2m (2010: £1.3m) represents an 
effective Group tax rate of 47% (2010: 31%) 
none of which is corporation tax payable.
The Group has material tax losses to carry 
forward and the rate of corporation tax payable 
in each of the next few years is expected to 
remain below the headline rate.
Distributable profits
The 	 distributable 	 profits 	 of 	 Renew 	 Holdings 	 plc 	
stood at £11.6m (2010: £9.9m) enabling the 
Board 	 to 	 recommend 	 an 	 unchanged 	 final 	
dividend of 2.0p per share.
John Samuel
Group Finance Director
22 November 2011
2.2%
(T arget: 1.6%)
Operating profit % of revenue
2011 2012
2.6%
2013
2.8%
2014
3.0%
2.2%
1.6%
T arget   Actual
“The	distributable	profits	of	Renew	
Holdings plc stood at £11.6m 
(2010: £9.9m) enabling the Board 
to	recommend	an	unchanged	final	
dividend of 2.0p per share.” Our strategy
12
Renew Holdings plc
Annual Report and Accounts 2011
The transformation 
of Renew into an 
Engineering Services 
Group combined with 
targeting regulated 
markets puts the Group 
in a position of strength 
with good opportunities 
for growth.
The core of our strategy
In 2009, the Board set out its strategy to deliver at least 50% of Group 
revenue from its Engineering Services activities with Group operating 
profit 	 of 	 over 	 2% 	 by 	 2012. 	 These 	 targets 	 have 	 been 	 achieved 	 one 	 year 	
ahead of plan.
The acquisition of Amco in February 2011, together with continued 
organic growth and the decision to withdraw from non‑specialist public 
sector building markets, has accelerated the repositioning of Renew 
as an Engineering Services Group supporting UK infrastructure.
An established plan for growth
Adding value 
and resilience to 
Group operations
Broadening the scale 
of our operations
The 	 acquisition 	 of 	 Amco 	 is 	 firmly 	 in 	 line 	 with 	
the Group’s stated strategy and, as a result, 
63% of on‑going revenue is now derived 
from our Engineering Services operations.
Growing our 
Engineering Services 
operations organically 
and by acquisition 13
Renew Holdings plc
Annual Report and Accounts 2011
13 Group overview
What we are doing to achieve our goals
Expand
Identify
Deliver
4.2%
T arget: 3‑4%
Operating margins
51
Framework agreements
63%
T arget: 50%
Engineering Services % of on-going 
Group revenue
Expanding our Engineering Services 
both organically and by acquisition whilst 
maintaining operating margins above 3%.
In Engineering Services our focus is to secure 
sustainable positions on framework agreements, 
in areas of non‑discretionary spend as well 
as selective capital projects.
It is the Group’s ambition to have turnover of 
over £500m by 2014, achieved by acquisition 
and organic growth, with a target that 
Engineering Services will account for 
at least 70% of Group revenue and with 
Group operating margin of more than 3%.
What’s next?
  Identifying acquisition opportunities which 
provide complementary skills to those 
of our existing businesses, are earnings 
enhancing and achieve margins in our 
target range. 
  Our integrated approach provides 
the opportunity for the cross selling of 
services from around the Group.
What’s next?
  We will look to secure sustainable positions 
on framework agreements, focusing 
on areas of non‑discretionary spend.
  We will maintain selectivity of opportunities 
in markets where the Group has expertise 
and experience.
What’s next?
  Group operating margin of more than 3%.
  Engineering Services accounting 
for at least 70% of Group revenue.
  Group turnover of over £500m.
£177m
Engineering Services revenue
Measuring our performance
2007
69
2008
101
2009
115
2010
127
2011
177
2006
54
£m
50%
Engineering Services % 
of Group revenue
2007
21
2008
26
2009
36
2010
44
2011
50
2006
17
%
£7.4m
Engineering Services operating profit
2007
3.4
2008
3.5
2009
4.0
2010
4.2
2011
7.4
2006
2.8
£m Review of 
operations
This section looks at the Group’s target 
markets and highlights our achievements 
in these markets during the year.
14
Renew Holdings plc
Annual Report and Accounts 2011 Review of operations 16 Energy
18 Environmental
20 Infrastructure
22 Specialist Building
In this section
15
Renew Holdings plc
Annual Report and Accounts 2011
15 Review of operations Underhead
Heading
16
Renew Holdings plc
Annual Report and Accounts 2011
16
Renew Holdings plc
Annual Report and Accounts 2011 Energy
Renew is ideally positioned to take advantage of the increase in 
non‑discretionary spending in the energy market with an increase 
in skills following the acquisition of Amco alongside existing 
complementary skills from within the rest of the Group.
The Group has expertise in nuclear decommissioning where we 
currently provide mechanical and electrical construction, dismantling 
and decommissioning services.
We carry out installation and commissioning, operation and 
maintenance services, outage management and working in line 
processes. These services are carried out through our dedicated 
multi‑skilled staff and operatives.
In each of the energy sub‑markets we provide a range of activities 
including multidisciplinary civil, mechanical and electrical 
engineering services, critical planned and reactive maintenance 
services, feasibility and solution development, design and design 
management, project management and construction.
Nuclear
Coal
Biomass
Wind
Hydro
Transmission 
and distribution
Our energy 
markets
The UK energy market
In order to achieve the Government’s target of generating 20% of UK 
energy from renewable sources by 2020, it is estimated that more 
than £110bn of investment is needed in new power generation and 
grid upgrades over the next decade.
This increase in capacity will be provided from a combination 
of fossil, nuclear and renewable technologies. Where existing power 
generation facilities remain, these will need to meet new targets 
on emission controls.
The UK’s energy sector is undergoing a period of 
reform as it adjusts to the changing shape of future 
energy provision.
£110bn
Estimated investment required in new power generation and 
grid upgrades over the next decade
Growth in Nuclear revenue
2007
30
2008
32
2009
34
2010
35
2011
44
2006
26
2005
19
£m
Energy
This year has seen huge growth in our energy operations together with the acquisition of Amco.
The acquisition has brought additional skills to the Group, as well as longstanding relationships 
with blue chip clients. We operate nationwide in the UK energy market providing a range of 
multidisciplinary engineering services to the industry.
Our operations target the on-going maintenance and asset renewal programmes in the Energy 
industry, which provide the Group with a core workload and access to capital projects as they arise.
Our energy capabilities Underhead
Heading
17
Renew Holdings plc
Annual Report and Accounts 2011
Review of operations 17
17
Renew Holdings plc
Annual Report and Accounts 2011
Our experience in the 
newer forms of renewable 
energy together with our 
nationwide operations gives 
us 	 greater 	 flexibility 	 to 	 meet 	
demand in this sector.
How are we capitalising on these markets?
Nuclear
We provide engineering services including asset care and 
maintenance of operational facilities, decommissioning, clean up 
and all aspects of mechanical and electrical project support. We are 
also a supplier of high integrity fabrications for which demand will 
increase within the nuclear new build programme. 
Over 66% of the Nuclear Decommissioning Authority funding 
is allocated to nuclear licenced sites where we are active.
Coal 
Coal 	 fired 	 power 	 stations 	 currently 	 provide 	 42% 	 of 	 all 	 UK 	 power 	 generation. 	
T o meet the energy gap, coal generation will continue to be a major provider 
up to and beyond 2020. We provide embedded engineering services for 
the majority of the major generators and are well placed to maximise the 
opportunities that will arise from investment in reducing emissions.
Biomass 
Government legislation has facilitated a major investment drive in biomass. 
Our specialist materials handling capability is well placed for market 
accessibility in excess of 70% of the available opportunities at power 
stations and ports.
Wind
Wind will play a major role in achieving the Government’s renewable 
targets. We are strategically placed to increase our share of the 
resulting new build and maintenance opportunities. 
Hydro
The 	 Department 	 of 	 Energy 	 and 	 Climate 	 Change 	 has 	 identified 	
undeveloped hydro capacity of 1500MW in the UK. As a turnkey 
provider on existing frameworks with the major developers, we have 
accessibility to over 75% in a market worth £4bn.
Transmission and distribution 
Significant 	 changes 	 in 	 the 	 generation 	 mix 	 will 	 result 	 in 	 reinforcements 	
estimated at £4.7bn over a 9 year period. With our existing 
frameworks with network operators in the UK we have over 22% 
accessibility on the non‑discretionary spend as well as associated 
capital expenditure opportunities.
Targeting the energy market
What have we achieved?
  We operate at 9 nuclear licenced sites in the UK where work 
is underpinned by maintenance framework agreements and 
where we have experienced record volumes during the year.
  We remain the largest mechanical and electrical contractor at 
Sellafield 	 where 	 the 	 focus 	 is 	 on 	 the 	 decommissioning 	 and 	 hazard 	
reduction operations.
  Good progress was made on the major projects programme 
at 	 Sellafield 	 with 	 the 	 integrated 	 approach 	 of 	 our 	 businesses 	
providing opportunities.
  We have established ourselves as a strategic provider of post 
warranty wind turbine operation and maintenance services with 
term 	 contracts 	 at 	 2 	 of 	 the 	 most 	 efficient 	 wind 	 farms 	 in 	 Scotland. 	
  We have secured 3 year hydro electric development frameworks 
with two of the UK’s water utility companies. 
  We now provide integrated support services to over 10GW 
of the UK’s thermal power station capacity. 
What’s next?
	 	 There 	 are 	 significant 	 opportunities 	 for 	 growth 	 in 	 the 	 energy 	
markets we target.
  We operate from an established platform where we have both 
expertise and experience.
  Continue to differentiate ourselves by integrating our generation, 
grid and decommissioning skills.
  Multi Discipline Site Wide framework extended to September 2012 
at 	 Sellafield.
  Undertake works on the Decommissioning and Demolition 
framework as part of Cumbrian Nuclear Solutions Limited 
secured until March 2015.
	 	 A 	 decommissioning 	 project 	 at 	 Springfield 	 F uels 	 for 	 W estinghouse.
  We continue to support the consortia involved in the Nuclear New 
Build programme where we have skills in stainless steel fabrication, 
materials handling and mechanical and electrical services. Underhead
Heading
18
Renew Holdings plc
Annual Report and Accounts 2011
18
Renew Holdings plc
Annual Report and Accounts 2011 Environmental
Targeting the Land Remediation market Our Land Remediation capabilities
With 	 the 	 removal 	 of 	 Landfill 	 T ax 	 Exemptions 	 at 	 the 	 end 	 of 	 March 	 2012 	
the real cost of disposing of any actively contaminated soils will rise, 
placing even greater emphasis on retaining and reusing soils on site. 
Our subsidiary VHE is established as the UK’s premier Part 2A 
contractor and holds an Environment Agency Mobile Treatment 
Licence enabling the treatment of contaminated soils on the site 
of origin or as part of a Hub and Cluster on a temporary 
treatment arrangement.
What have we achieved?
  Projects undertaken for National Grid, as part of the on‑going 
framework agreement, at Neepsend and Partington in Manchester, 
the 	 first 	 large 	 scale 	 hub 	 and 	 cluster 	 project 	 in 	 the 	 UK . 	
  Appointed to 3 remediation frameworks with National Grid, 
continuing our long relationship with this client.
  Completion of the remediation of a former gas works site at St 
Helier in Jersey for the Royal States of Jersey.
  Provision of civil, mechanical and electrical engineering 
maintenance services under 5 framework agreements 
for the Environment Agency.
What’s next?
  Development of opportunities in the waste to energy and 
renewables sectors.
  Continuation of our 15 year relationship with National Grid through 
the successful delivery of their framework agreements, for a further 
three years.
  Successfully secure a position on the Environment Agency 
framework for Part 2A works.
  Development of sustainable remediation in line with Sustainable 
Remediation Forum UK.
The UK’s contaminated land sector has reportedly 
turned over £1bn per annum in recent years and is 
expected to grow by almost 3.5% annually between 
now and 2015.
Land remediation
W e 	 have 	 significant 	 experience 	 in 	 brownfield 	 development 	 a n d	
contaminated land management nationally since 1979. 
Services include site surveys and the assessment of potential risks 
associated with previous uses and the development of appropriate 
remedial 	 strategies 	 which 	 maximise 	 the 	 efficient 	 use 	 of 	 all 	 engineering 	
resources. This can be soil treatment by biophysical remediation, 
soil 	 washing, 	 solidification 	 and 	 stabilisation 	 as 	 well 	 as 	 groundwater 	
treatment and management.
Environmental
We focus on the requirements for water, flood alleviation, coastal defence and land 
remediation expertise where we provide multidisciplinary engineering services across 
16 framework agreements.
Investment in these markets is set to increase in line with demand. We have strong 
relationships with clients responsible for delivering infrastructure renewal and 
enhancement programmes.
300,000
 The Environment Agency estimates that there may be some 
300,000 hectares of land in the UK that has been affected to 
some extent by natural or industrial contamination.
250
 On average 250 new sites have been classified 
as contaminated each year since 2000. Underhead
Heading
19
Renew Holdings plc
Annual Report and Accounts 2011
Review of operations 19
19
Renew Holdings plc
Annual Report and Accounts 2011
Targeting the Water market
The Environment Agency estimates the investment 
required 	 in 	 building 	 and 	 maintaining 	 flood 	 defences, 	
to 	 manage 	 the 	 increasing 	 risk 	 of 	 flooding 	 and 	 coastal 	
erosion due to climate change and asset deterioration, 
will need to almost double to £1bn a year by 2035.
Flood resilience of critical assets is also a major concern for water 
companies. 	 Reducing 	 the 	 risk 	 of 	 sewer 	 flooding, 	 controlling 	 leakage 	
and water main bursts, renewing treatment works and reducing 
environmental impact features highly in their investment programmes. 
It is expected this investment will take the form of a large number 
of capital and maintenance projects spread across the country.
What have we achieved?
  Secured a position on Northumbrian Water’s ten year AMP5 
framework which provides the opportunity for the selected 
participants to win work estimated at a total value of £1.5bn.
  Appointed to a major waste water and two non‑discretionary 
maintenance frameworks as well as frameworks for trunk mains 
cleansing and water distribution as part of the AMP5 programme.
  Work in the Water sector is undertaken through framework 
agreements with Northumbrian Water and Scottish Water.
  Appointed to 2 exclusive regional frameworks with the Environment 
Agency; North East MEICA and Wales Rivers Maintenance. 
  Appointed to 3 non‑exclusive regional frameworks with 
the Environment Agency; North East Civil, Midlands Civil 
& Midlands MEICA. 
  The award of 3 year frameworks with both Welsh Water and 
Scottish Water. 
What’s next?
  Secure further suitable framework agreements with Northumbrian 
Water and Local Authorities.
  Focus on the increasing number of maintenance framework 
opportunities in the water sector.
  Integrate our existing Environment Agency regional framework 
resources to position ourselves for the new larger national 
framework opportunities. 
Water
Flood alleviation
River and 
coastal defence
Land remediation
Our 
Environmental 
markets
Our Water capabilities
Water
We have extensive expertise in water infrastructure development 
and 	 maintenance, 	 flood 	 alleviation 	 and 	 river 	 and 	 coastal 	 defences. 	
We provide specialist services in mechanical and electrical 
installations, maintenance, pump sales and service.
Our largest client in the water sector is Northumbrian Water 
where work is undertaken on the AMP5 framework agreement. Underhead
Heading
20
Renew Holdings plc
Annual Report and Accounts 2011
20
Renew Holdings plc
Annual Report and Accounts 2011 Infrastructure
The UK rail market
This year has seen huge growth in our Rail 
operations with the acquisition of Amco. 
The acquisition has brought additional 
skills to the Group as well as long standing 
relationships with blue chip clients.
How we’re currently progressing
We operate nationwide on the UK rail network 
providing a range of multidisciplinary engineering 
support services to the industry. Our operations 
target the on‑going maintenance and asset renewal 
programmes of the rail industry. This provides the 
Group with a core workload and access to capital 
projects as they arise.
The rail market in the UK is more secure following the Government’s 
Comprehensive Spending Review at the end of 2010 and 
subsequent announcements, underpinning optimism in the sector.
Network Rail is the steward of the national rail network and as such 
undertakes a renewal and enhancement programme to meet its 
obligations to its train operating customers and its stakeholders.
Our business is principally aligned with Network Rail where we are 
the leading provider of engineering maintenance works as well as 
carrying out individual capital projects.
We also work for a number of train operating companies on the 
UK rail network.
Investment in rail remains a key part of the UK’s 
transport investment strategy as demand for extra 
passenger and freight services continues to grow. 
Infrastructure
We provide a range of civil, building, mechanical and electrical engineering and 
maintenance services nationally across the rail network. Our strength lies in our ability to 
successfully deliver a variety of integrated and sustainable solutions for our clients who 
include Network Rail, London Underground and the train operating companies. Underhead
Heading
21
Renew Holdings plc
Annual Report and Accounts 2011
Review of operations 21
21
Renew Holdings plc
Annual Report and Accounts 2011
The general infrastructure 
market in the UK is forecast 
to grow considerably over 
the next 5 years. Operational 
and maintenance costs of 
the UK rail network are 
estimated at £4bn per year.
Targeting the infrastructure market How are we capitalising on this market?
Our infrastructure capabilities
What have we achieved?
  Recently appointed to the 3 year Buildings and Civil Delivery 
Partnership framework (“BCDP”) for infrastructure projects and 
maintenance, the only company to be awarded this framework 
nationally. This framework has an anticipated turnover of 
approximately £30m per annum.
  Completion of the W10 Gauging Enhancement Scheme which 
involved the reconstruction of the Hassalls, Burbage and Kirby 
Bellars bridges as part of Network Rail’s Peterborough to 
Nuneaton W10 upgrade.
  Successful completion of station modernisation schemes at 
Marble Arch and Notting Hill Gate for London Underground 
with a combined value of over £30m.
	 	 Appointed 	 to 	 the 	 National 	 Electrification 	 and 	 Plant 	 framework 	
agreement, delivering a maintenance and renewal programme 
for Network Rail nationally.
What’s next?
  Successful delivery of the BCDP framework which runs for at least 
the next 3 years with an option to renew for a further 2 years.
  Deliver the £5m Ore Tunnel Repair project in Hastings, 
where work has commenced on site utilising our market leading 
experience in tunnel refurbishments.
  Continue to broaden our skill base through investment in our 
directly employed staff and operatives with a view to maintaining 
our excellent record for safe and effective delivery throughout 
the UK.
The general infrastructure market in the UK is forecast to grow 
considerably over the next 5 years. Operational and maintenance 
costs of the UK rail network are estimated at £4bn per year.
 The Group has over 26 years’ experience working in the Rail sector 
delivering projects for clients such as Network Rail, London 
Underground and a number of train operating companies.
 Our experience is in providing civil, building, mechanical and 
electrical services across the UK rail network where our focus is 
on non‑discretionary infrastructure renewal, enhancements and 
maintenance as well as capital projects under a number of 
framework agreements. 
 We are a market leader in tunnel refurbishments developed from 
many years experience in the mining industry.
Projects Maintenance
Renewals
  Building and civils frameworks
  Building and civils projects
  Station regeneration
Enhancements
  Major building and civils 
renewals programmes
 Track gauging enhancement
  Station regeneration
Signalling power and 
communications
 Signalling
	 Electrification 	
  Mechanical and electrical
Asset management
  Minor civil and building 
maintenance framework
 General maintenance
Signalling, power and 
communications
	 	 Electrification 	 and 	 plant 	
maintenance framework
installation Underhead
Heading
22
Renew Holdings plc
Annual Report and Accounts 2011
22
Renew Holdings plc
Annual Report and Accounts 2011 Specialist Building
The New Build Social Housing market
In February the Government announced the 
affordable homes programme where they committed 
to an investment of £4.5bn to deliver up to 150,000 new 
affordable homes between now and 2015 across the 
UK. In the main these new homes will be built by the 
Housing Associations.
Why do we target this market? 
Operating in London and the South East we specialise in new build 
social housing and refurbishment schemes where our 13 framework 
agreements access a £600m annual market. 
Demand for new build social housing remains high. The South has 
been allocated around 50% of the Homes and Communities Agency 
funding with a large portion shared by our existing housing 
association partners.
How are we capitalising on this market?
  Using traditional design and build, and partnering forms of contract, 
we 	 undertake 	 new 	 build, 	 refurbishment 	 and 	 fit 	 out 	 contracts 	 within 	
both the public and private sectors of the New Build Social 
Housing market.
  There are high barriers to entry in this market and we continue to 
develop our relationships with existing and new framework partners.
  We work with some of the largest housing associations in 
the South East through framework agreements including 
Metropolitan Housing Trust, London and Quadrant and 
Notting Hill Home Ownership.
What have we achieved?
  3 new framework appointments with Estuary Housing Association, 
Hyde Housing Association and London and Quadrant Housing 
T rust 	 where 	 the 	 first 	project 	 has 	 commenced 	 on 	 site 	 at 	 L ynton 	 Road.
Specialist Building
The Group’s Specialist Building operations concentrate on the New Build Social 
Housing, High Quality Residential and Retail markets in the South, where these 
markets provide stable opportunities for the future.
Investment in new affordable homes by 
the Homes and Communities Agency
   East and South East  13%
  London  36%
  South and South West  14%
  Midlands  16%
  North East Yorkshire 
 and the Humber  10%
  North West  11%
All 	 figures 	 subject 	 to 	 change 	 through 	 contracting 	 process. Underhead
Heading
23
Renew Holdings plc
Annual Report and Accounts 2011
Review of operations 23
23
Renew Holdings plc
Annual Report and Accounts 2011
The High Quality Residential market
W e 	 specialise 	 in 	 the 	 new 	 build, 	 refurbishment 	 and 	 fit 	 out 	
of prestigious private residences in London. Our work 
includes listed buildings and those of historical interest, 
often involving challenging structural work and many 
specialist 	 finishes. 	 W e 	 specialise 	 in 	 the 	 provision 	 of	
temporary works engineering, design management, 
planning, 	 traffic 	 management 	 and 	 l o g i s t i c s 	 s u p p o r t .
Why do we target this market? 
This market has seen an increase in requirements for extensive 
refurbishment and development which has been largely unaffected 
by the economic downturn.
How are we capitalising on this market?
We have an extensive record in projects up to £60m and are able to 
add additional value through our engineering solutions. Our in‑ house 
expertise in challenging structural works where substantial works 
are often below ground as well as in tight urban areas where access 
is restricted, provides a key differentiator.
What have we achieved?
  Good progress was made on projects in Mayfair and Belgravia.
  New awards were received in Knightsbridge, Kensington and Chelsea.
New Build 
Social Housing
High Quality 
Residential
Retail
Our 
Specialist 
Building 
markets
The Retail market
With over 50 years experience we specialise in 
schemes ranging from multi‑million pound design 
and build developments through to refurbishment 
and restoration projects. We specialise in fast‑track 
and innovative delivery programmes.
Why do we target this market? 
There continues to be a strong pipeline of retail development 
opportunities in planning stages in the UK. 
How are we capitalising on this market?
We have strong relationships with blue chip clients in the retail 
sector and the demand from retailers for developments to occupy 
is still rising.
What have we achieved?
  Awarded the project to construct a T esco store at Widnes; 
the project is on site and progressing well.
  A number of projects successfully carried out during the year 
for T esco at Portland, Risca and Sandwell. 24
Renew Holdings plc
Annual Report and Accounts 2011 Corporate governance
Corporate 
governance
This section outlines the Group’s 
Corporate Governance procedures. 25 Corporate governance
25
Renew Holdings plc
Annual Report and Accounts 2011
26 Corporate social responsibility
30 Directors’ report
34 Directors’ remuneration report
37 Corporate governance
39  Statement of directors’ responsibilities
In this section 26
Renew Holdings plc
Annual Report and Accounts 2011 Corporate social responsibility
We are committed to acting 
as a responsible member 
of the business community
We strive to balance the Group’s economic 
sustainability alongside our social and environmental 
responsibilities. It is our aim to leave a lasting positive 
impact in the communities in which we operate.
Our commitments to CSR in brief
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 within 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 maximise the social, economic and 
environmental 	 benefits 	 of 	 the 	 Group’s 	
operations beyond compliance with 
minimum legal requirements.
  A wards
  Safety
  Environment and sustainability
  Employment and training
  Community engagement 
and charitable giving 
The Group continues to take the lead 
by making safety its priority. 
The Renew Safety and Environmental 
Management Group co‑ordinates activity 
across the Group, setting standard 
processes, agreeing best practice and 
ensuring the effective transfer of knowledge.
Find out more on page 28
Safety Corporate governance 27
27
Renew Holdings plc
Annual Report and Accounts 2011
Awards
Royal Society for the Prevention 
of Accidents (“RoSPA”)
A number of our businesses have 
achieved RoSPA awards in their 
prestigious Occupational Health and 
Safety Awards 2011.
Shepley Engineers was awarded an 
“Order of Distinction” for achieving 
15 consecutive Gold Awards. 
A Gold Award recognises a high 
level of performance underpinned 
by excellent management systems 
which deliver consistent improvements.
PPS Electrical achieved a President’s 
Award for 11 consecutive Gold Awards. 
A 	 fifth 	 consecutive 	 Gold 	 Award 	 was 	
awarded to VHE and Britannia won 
a Gold Award for the second consecutive 
year. A Silver Award was presented to 
West Cumberland Engineering in only 
their third year of application. 
Considerate Constructors Scheme
It is a requirement that all of our 
sites are registered with the Considerate 
Constructors Scheme. During the year 
Britannia received an “exceptionally good” 
Bronze	A ward	for	the	F areham	Shopping	
Centre project. The Group sets a minimum 
target score of 65% on assessment which 
we have achieved on all our sites during 
the year with an average score of 83%.
Other Awards
At the National Rail Awards 2011 Amco 
won the “Infrastructure Maintenance Team 
of the Year” award for repeatedly delivering 
quality work on time and budget, without 
affecting service. The awards saw Amco 
compete against over 200 entrants 
in this category where they were able 
to demonstrate the highest levels of 
performance	reflected	in	the	exceptional	
KPI scores throughout the year.
VHE’s Cudworth and West Green Bypass 
scheme	was	honoured	with	a	“Certificate	
of Excellence” in design and execution in 
civil engineering works by the Yorkshire 
and Humber region of the Institute of 
Civil Engineers.
Our environmental initiatives are wide ranging and 
encourage our employees and sub‑contractors to adopt 
sound environmental understanding and practices through 
a mixture of training and awareness.
Find out more on page 28
Environment and sustainability
Our businesses are dedicated to ensuring 
their operations have a positive impact on 
communities through a variety of schemes.
Find out more on page 29
Community engagement 
and charitable giving
Our businesses offer a variety of employment 
and training opportunities in the communities 
in which they operate.
Find out more on page 29
Employment and training 28
Renew Holdings plc
Annual Report and Accounts 2011 Corporate social responsibility continued
Summary
  Our Accident Incidence Rate has 
reduced by 12% in the year and 77% 
since 2005. 
  On our projects, careful consideration 
is given to reducing waste disposal to 
landfill 	 through 	 waste 	 reduction, 	 reuse 	
and recycling programmes.
  Our employees are actively encouraged 
to be involved in promoting and 
enforcing a safe working culture 
and practices.
  Our businesses are accredited to the 
ISO 14001 standard which involves 
biannual assessments and a commitment 
to continually monitoring the impact of 
their operations on the environment.
Safety
The Group continues to take the lead by 
making safety its priority. The Renew Safety 
and Environmental Management Group 
co‑ordinates activity across the Group setting 
standard processes, agreeing best practice 
and ensuring the effective transfer of knowledge. 
Whilst	the	target	is	to	achieve	zero	accidents,	
we continued to make progress towards this 
during the year. Our Accident Incidence 
Rate reduced by 12% in the year and 77% 
since 2005.
Our businesses work continually to improve 
on their individual safety records. Our Nuclear 
business, Shepley Engineers, has undertaken 
over 1.6 million man hours since a lost time 
RIDDOR accident occurred.
Our employees are actively encouraged 
to be involved in promoting and enforcing 
a safe working culture and practices on 
our sites. During the year VHE launched 
the Prevention of Unsafe Conditions and 
Acts initiative, designed to increase low level 
incident reporting across the workforce. As 
part of their commitment to improving safety, 
Amco has implemented a behavioural based 
safety leadership and safety awareness 
programme as well as introducing behavioural 
observation based inspections. Safety initiatives 
undertaken around the Group by our individual 
busine sses	are 	 defined 	 by 	 the 	 industries 	 in 	
which they operate.
Environment and sustainability
Our environmental initiatives are wide 
ranging and encourage our employees and 
subcontractors to adopt sound environmental 
understanding and practices through a mixture 
of training and awareness. 
Our subsidiary businesses are accredited 
to the ISO 14001 standard which involves 
biannual assessments and a commitment 
to continually monitor the impact of their 
operations on the environment. 
As part of our drive to deliver sustainable 
solutions	we	promote	the	efficient	use	of	
resources and raw materials and seek ways 
to reduce our carbon footprint and that of 
the projects we undertake. On our projects, 
careful consideration is given to reducing 
waste	disposal	to	landfill	through	waste	
reduction, reuse and recycling programmes. 
Recently, Britannia has become one of 500 
companies throughout the UK to sign up 
to the WRAP Construction Commitment: 
Halving	W aste	to	Landfill,	as	part	of	their	drive	
to embed sustainable practices throughout 
the company. By supporting and delivering 
against this pledge, Britannia is aiming to 
improve its environmental performance 
and reduce its carbon footprint.
Innovative solutions are part of the design 
process and can help our clients achieve 
their environmental objectives. Recent examples 
include	a	solution	on	a	flooded	landfill	project	
where C&A used pre‑cast tanks and borehole 
pumps to evacuate spring water from below a 
landfill	pod.	Also	at	Amco	an	innovative	lifting	
Many of our businesses 
participate in fundraising events 
for their chosen charities. Corporate governance 29
29
Renew Holdings plc
Annual Report and Accounts 2011
beam solution was developed whilst working 
at height in wind turbines on Bow Beat Wind 
Farm. The lifting beam was utilised to remove 
significant 	 manual 	 handling 	 issues 	 which 	 arise 	
and the proposal may also be adopted on 
other wind farms.
Consideration of the impact of our operations 
is especially important when we work within 
the community. We work hard to ensure 
our operations are carried out in a 
respectful manner.
Employment and training
Our businesses offer a variety of employment 
and training opportunities in the communities 
in which they operate. The schemes range 
from apprenticeships and scholarships to 
work experience in partnership with local 
schools and training providers nationwide. 
In the North East, Seymour partners with 
St Hild’s specialist engineering school where 
work experience is provided for pupils in 
collaboration with Hartlepool College of 
Further Education and Construction Skills. 
Two of our businesses, Walter Lilly and 
Seymour, are licenced training providers to 
the Engineering Construction Industry Training 
Board for their Supervisory Management 
Training and Development programme. 
Seymour is currently in negotiation to become 
a Centre of Excellence delivering placement 
training to engineering apprentices. 
C&A has recently received an award from 
the National Apprenticeship Service for its 
commitment and support as an employer 
to the training and skills development of 
their staff. 
Consideration of the impact of our 
operations is especially important when 
we work within the community. We work 
hard to ensure our operations are carried 
out in a respectful manner.
In Cumbria, Shepley Engineers operates 
in the Nuclear industry where, in response 
to the future demand for skilled resources, 
it	continues	to	make	significant	investments	
in its craft apprenticeship programme. 
The programme supports 40 trainees 
at various stages of development. 
In the South, Allenbuild commits to creating 
and providing opportunities for young people 
within the industry by providing placements, 
trainee positions and ultimately employment. 
All trainees sign up to the “Achieve with 
Allenbuild” training programme.
Britannia is undertaking the “Think Local” 
approach on a site in Sandwell. The initiative 
has resulted in a successful apprentice 
scheme being implemented between Britannia 
and Sandwell Borough Council. The apprentices, 
who	are	all	studying	for	NVQ	qualifications	at	
nearby Sandwell College, are undertaking 
training in carpentry and bricklaying and are 
spending twelve week periods on site under 
the supervision of Britannia’s site team.
Community engagement 
and charitable giving
Our businesses are dedicated to ensuring 
their operations have a positive impact on 
communities through a variety of schemes. 
Shepley Engineers continues to support 
the Cumbria Grassroots Endowment Fund, 
which provides grants for use on a range 
of worthy Cumbrian causes. In addition the 
Shepley Apprentice Scheme has community 
awareness training as part of the apprenticeship 
syllabus. In July 2010 work started with 
The Calvert Trust, a charity which provides 
exciting, challenging and enjoyable outdoor 
activity adventure holidays to people of all 
ages and abilities, helping with their mission 
to	create	a	zip	wire	challenge.	T o	date	the	
second year apprentices have cleared the 
line of the 500m long path through heavy 
undergrowth and construction of the wheelchair 
path is now underway. 
Many of our businesses participate in 
fundraising events for their chosen charities. 
Charities supported include the British Heart 
Foundation, the Guide Dogs, the Royal 
National Lifeboat Institution and Macmillan 
Cancer Support, where Britannia undertook 
a number of fundraising events in the year. 
The Group has also supported local charities 
across the country including the Hospital 
Heartbeat Appeal and Ilkley Candlelighters. 30
Renew Holdings plc
Annual Report and Accounts 2011 Directors’ report
The Directors present their report and the audited accounts for the year ended 30 September 2011.
Principal activities
For the year ended 30 September 2011 the principal activity of the Group was as contractors in Engineering Services and Specialist Building. 
The main 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 2011 appears on page 73.
Results and dividends
The Group profit for the year was £1,305,000 (2010: £2,736,000). The Directors recommend the payment of a final dividend on Ordinary Shares 
of 2.0p (2010: 2.0p) giving a total for the year of 3.0p (2010: 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 tables 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. 
2.2%
(target: 1.6%)
Operating profit % of revenue
82%
(target: 66%)
Percentage of orders from repeat clients
2008
77%
2009
87%
2010
71%
2011
82%
2012
2011 2012
2.6%
2013
2.8%
2014
3.0%
2.2%
1.6% 2.6% 2.8% 3.0%
66% 66% 66% 66% 66%
77%
(target: 47%)
Cumulative reduction in accident  
incidence rate
2008
57%
2009
64%
2010
74%
2011
77%
2012
27% 34% 41% 47% 52%
86%
(target: 66%)
Percentage of orders in specialist sectors
2008
83%
2009
80%
2010
87%
2011
86%
2012
66% 66% 66% 66% 66% Corporate governance 31
31
Renew Holdings plc
Annual Report and Accounts 2011
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 to 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 contracting 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. The Group’s bank loan and overdraft facility bear 
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. As at 30 September 2011, £13,225,000 (2010: £12,863,000) 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 Group’s average creditor days during the year were 40 days (2010: 34 days).
Donations
Charitable donations made by the Group during the year amounted to £38,492 (2010: £37,589). 
The Group made no political donations during the year (2010: £nil). 32
Renew Holdings plc
Annual Report and Accounts 2011 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 to its employees about the activities and performance of the Group.
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 W 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. Health, 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 and locally based construction safety groups. All safety and 
environmental department personnel hold membership with the Institution of Occupational Safety and Health. Attendance on the five day 
Construction Industry Training Board 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 is used 
to introduce new systems and detail changes to construction legislation. Short duration “tool box talks” and “safety briefings” are 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 2011, 
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 26 to 29.
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, 66, 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.
David Forbes – Director, 51, was appointed to the Board as a non-executive Director in June 2011. He qualified as a Chartered Accountant in 1984 
and has over 20 years’ experience in corporate advisory services with N M Rothschild & Son Limited. He is a non-executive director of Vertu Motors 
plc and Chairman of Northern Ballet Theatre Limited.
Roy Harrison OBE – Director, 64, 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 
T armac Group, a former 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. Corporate governance 33
33
Renew Holdings plc
Annual Report and Accounts 2011
Executive Directors
Brian May – Director, 60, 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, 55, 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.
Roy Harrison OBE retires by rotation at the 2011 Annual General Meeting (“ AGM”) and will offer himself for reappointment. The Board recommends 
the reappointment of Roy Harrison as it considers that he brings considerable management and industry experience to the Group’s business. 
Additionally, David Forbes, who was appointed as a Director on 1 June 2011, seeks reappointment at the first AGM since his appointment. The 
Board recommends the reappointment of David Forbes and considers that he brings considerable financial and corporate finance 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 36. No Director has any interest in any other Group company. Details of the Directors’ remuneration and service contracts appear on page 35.
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 Percentage 
     of ordinary of issued 
     shares share capital
Henderson Global Investors Limited      10,039,572 16.76%
Octopus Investments Nominees Limited     9,483,480 15.83%
Brewin Dolphin Limited     2,800,783 4.68%
Hargreave Hale Limited     3,008,750 5.02%
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 the auditor
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 Auditor is 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 Auditor is aware of that information.
Auditor
Resolutions will be proposed at the forthcoming AGM to re-appoint KPMG Audit Plc as Auditor to the Group and to authorise the Directors to 
determine their remuneration.
Approval
The Board approved the Report of the Directors on 22 November 2011.
By Order of the Board
John Samuel FCA
Company Secretary
22 November 2011
Company number 650447 34
Renew Holdings plc
Annual Report and Accounts 2011 Directors’ remuneration report
The Directors present the Directors’ Remuneration Report (the “Remuneration Report”) for the financial year ended 30 September 2011.
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 Auditor is not required to report to the shareholders on the Directors’ 
Remuneration Report.
Remuneration Committee
On his appointment as a Director on 1 June 2011, David Forbes assumed the Chairmanship of the Remuneration Committee which also comprises 
Roy Harrison and John Bishop. The Committee held 2 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 adjusted where the Committee believes that adjustments are appropriate 
to reflect performance, changed 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. Corporate governance 35
35
Renew Holdings plc
Annual Report and Accounts 2011
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, no options were granted under the 2004 ESOS to the Executive Directors. The performance criteria in respect 
of 709,140 previously granted options were not achieved and so those options lapsed during the year. There are 2,194,486 other options 
outstanding under the scheme of which 761,904 have vested and 120,263 will vest on 26 November 2011. 
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 2011, include the following terms:
Directors   Executive/Non-executive Date of contract Unexpired term Notice period (months)
J Bishop   Non-executive 1 September 2008 Rolling one year 12
D Forbes   Non-executive 1 June 2011 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 2011:
     Total Emoluments T otal Emoluments
  Salary/fees Bonuses Benefits  2011 2010
 Notes £000  £000 £000 £000 £000
Executive Directors
B May 1,2,3,4 287 287 56 630 492
J Samuel 1,2,3,4 221 221 44 486 380
     1,116 872
Non-executive Directors
R Harrison  55 — — 55 55
J Bishop  30 — — 30 30
D Forbes  10 — — 10 —
     1,211 957
Notes:
1. The highest paid Director for 2011 and 2010 was B May who received emoluments of £630,000 (2010: £492,000). 
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 2012. 36
Renew Holdings plc
Annual Report and Accounts 2011 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 no options were 
granted under the 2004 ESOS to the Executive Directors. The performance criteria in respect of 709,140 previously granted options were not 
achieved and so those options lapsed during the year. There are 2,194,486 other options outstanding under the scheme of which 761,904 have 
vested and 120,263 will vest on 26 November 2011. The market price of the Company’s shares at 30 September 2011 was 57p and the range of 
market prices during the year was between 31p and 83p.
Information is provided below for Directors who served during the financial year and as at 30 September 2011:
     Cumulative Total
  2010 Award 2009 Award 2006 Award 30 September 2011 1 October 2010
B May  831,884 76,264 476,190 1,384,338 1,834,037
J Samuel  480,435 43,999 285,714 810,148 1,069,589
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 2011 
as follows:
     Ordinary Shares of £0.10 each
     30 September 2011 30 September 2010
J Bishop     10,000 10,000
R Harrison     100,000 60,000
B May     405,000 355,000
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 22 November 2011 and signed on its behalf by:
D M Forbes
Chairman of the Remuneration Committee
22 November 2011 Corporate governance 37
37
Renew Holdings plc
Annual Report and Accounts 2011 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 two independent non-executive 
Directors. Brief biographies of the Directors are given on pages 32 and 33.
The Company is not compliant with the requirement of the Code that more than half of the Board should be comprised of independent non-
executive Directors because R Harrison is not regarded as independent due to the period in 2004/2005 when he acted as Executive Chairman. 
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 except that D Forbes attended 2 of the three meetings held since his 
appointment. Committee meetings dealing with the daily business of the Company were 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
The Board operates with a number of Board Committees. J Bishop, the senior independent non-executive Director, acts as Chairman of the Audit 
Committee and D Forbes, an independent non-executive Director, acts as Chairman of the Remuneration Committee. The Nominations Committee 
is chaired by R Harrison. 
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 all of the non-executive Directors, 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 34 to 36. 
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 three 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 all three non-executive 
Directors. The Executive Directors are invited to attend Audit Committee meetings but at least two meetings are held each year with the external 
Auditor 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 Auditor. The Audit Committee monitors the non-audit work performed by the Auditor to help ensure that the independence 
of the Auditor 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 it time as it deems necessary. This Committee comprises two Executive Directors 
and considers individual business matters, which have been specifically delegated to it by the Board. 38
Renew Holdings plc
Annual Report and Accounts 2011 Corporate governance continued
Internal controls
Throughout the financial year ended 30 September 2011 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 2011, 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 Auditor.
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 25 January 2012, the Notice for which accompanies this Report and Accounts. 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 enclosed 
with the Notice of AGM. 
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 22 November 2011.
By Order of the Board
John Samuel
Company Secretary
22 November 2011 Corporate governance 39
39
Renew Holdings plc
Annual Report and Accounts 2011
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.  40
Renew Holdings plc
Annual Report and Accounts 2011
Accounts
This section details the Group’s accounts 
for the year ended 30 September 2011. Accounts 41
41
Renew Holdings plc
Annual Report and Accounts 2011
42 Independent auditor’s report
43 Group income statement
44  Group statement of comprehensive income
44  Group statement of changes in equity
45 Group balance sheet
46 Group cashflow statement
47 Notes to the accounts
67 Company balance sheet
68 Notes to the company accounts
74 Directors, officers and advisors
75 Shareholder information
In this section 42
Renew Holdings plc
Annual Report and Accounts 2011
to the members of Renew Holdings plc
Independent auditor’s report
We have audited the financial statements of Renew Holdings plc for the year ended 30 September 2011 set out on pages 43 to 73. 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 auditor’s report 
and for no other purpose. T o 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 39, 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, and express an opinion on, 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 website at www.frc.org.uk/apb/scope/private.cfm
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 2011 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
22 November 2011  43
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 43
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) T otal 
  2011 2011 2011 2010 2010 2010 
 Note £000 £000 £000 £000 £000 £000
Group revenue from 
continuing activities 2 356,667  — 356,667 290,395  — 290,395
Cost of sales   (322,679)  — (322,679) (260,804)  — (260,804)
Gross profit  33,988  — 33,988 29,591  — 29,591
Administrative expenses   (26,187) (5,651) (31,838) (25,073) (571) (25,644)
Operating profit 3 7,801 (5,651) 2,150 4,518 (571) 3,947
Finance income 4 167  — 167 205  — 205
Finance costs 4 (387) — (387) (41) — (41)
Other finance income/  
(charges) – defined benefit 
pension schemes 4 530  — 530 (119)  — (119)
)
Profit before income tax  8,111 (5,651) 2,460 4,563 (571) 3,992
Income tax expense 6 (2,375) 1,220 (1,155) (1,410) 154 (1,256)
Profit for the year  
attributable to equity 
holders of the 
parent company  5,736 (4,431) 1,305 3,153 (417) 2,736
Basic earnings per share 8   2.18p   4.57p
Diluted earnings per share 8   2.10p   4.37p 44
Renew Holdings plc
Annual Report and Accounts 2011
for the year ended 30 September
Group statement of comprehensive income
     2011 2010 
    Note £000 £000
Profit for the year attributable to equity holders of the parent company    1,305 2,736
Exchange movement in reserves     123 13
Movement in actuarial valuation of the defined benefit pension schemes   24 (5,265) 1,164
Movement on deferred tax relating to the defined benefit pension schemes   1,382 (338)
Total comprehensive income for the year attributable to  
equity holders of the parent company     (2,455) 3,575
Group statement of changes in equity
for the year ended 30 September
 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 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 
Transfer from income statement 
for the period      1,305  1,305
Dividends paid      (1,797) (1,797)
Recognition of share based payments     66  66
Exchange differences    123   123
Actuarial losses recognised in 
pension schemes      (5,265) (5,265)
Movement on deferred tax relating 
to the pension schemes      1,382 1,382
At 30 September 2011 5,990  5,893  3,896  1,182  283  (8,268) 8,976  45
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 45
at 30 September 
Group balance sheet
     2011 2010 
    Note £000 £000
Non-current assets
Intangible assets  – goodwill    9 26,986 9,558
 – other    9 2,750 154
Property, plant and equipment    10 4,805 4,690
Retirement benefit assets    24 1,089 1,060
Deferred tax assets    6 3,069 3,283
     38,699 18,745
Current assets
Inventories    11 8,918 8,570
Trade and other receivables    12 84,901 69,997
Current tax assets     646 169
Cash and cash equivalents    14 5,688 16,376
     100,153 95,112
Total assets     138,852 113,857
Non-current liabilities
Borrowings    16 (7,500)  —
Obligations under finance leases    17 (369)  —
Retirement benefit obligations    24 (119)  —
Deferred tax liabilities    6 (1,091) (424)
Provisions    18 (566) (520)
     (9,645) (944)
Current liabilities
Borrowings    16 (5,000) (131)
Trade and other payables    15 (114,543) (98,175)
Obligations under finance leases    17 (291) (6)
Current tax liabilities     (231) (607)
Provisions    18 (166) (832)
     (120,231) (99,751)
Total liabilities     (129,876) (100,695)
Net assets     8,976 13,162
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 1,182 1,059
Share based payments reserve    21 283 217
Retained earnings    21 (8,268) (3,893)
Total equity     8,976 13,162
Approved by the Board and signed on its behalf by: 
R J Harrison OBE
Chairman 
22 November 2011 46
Renew Holdings plc
Annual Report and Accounts 2011
for the year ended 30 September
Group cashflow statement
     2011 2010 
     £000 £000
Profit for the year     1,305 2,736
Amortisation of intangible assets     404 320
Depreciation     1,159 1,135
Profit on sale of property, plant and equipment     (25) (22)
Increase in inventories     (244) (377)
Decrease/(increase) in receivables     8,100 (2,674)
(Decrease)/increase in payables     (41) 3,945
Current service cost in respect of defined benefit pension scheme    56 85
Cash contribution to defined benefit pension schemes    (4,039) (2,451)
Expense in respect of share options     66 55
Financial income     (697) (205)
Financial expenses     387 160
Interest paid     (387) (41)
Income taxes paid     (523) (229)
Income tax expense     1,155 1,256
Net cash inflow from operating activities     6,676 3,693
Investing activities
Interest received     167 205
Proceeds on disposal of property, plant and equipment    1,782 125
Purchases of property, plant and equipment     (849) (560)
Acquisition of subsidiaries net of cash acquired     (29,319)  —
Net cash outflow from investing activities     (28,219) (230)
Financing activities
Dividends paid     (1,797) (1,797)
New loan     15,000  — 
Loan repayments     (2,500)  — 
Inception of new leases     396  — 
Repayments of obligations under finance leases     (115) (21)
Net cash inflow/(outflow) from financing activities    10,984 (1,818)
Net (decrease)/increase in cash and cash equivalents    (10,559) 1,645
Cash and cash equivalents at beginning of year     16,245 14,600
Effect of foreign exchange rate changes on cash and cash equivalents    2  — 
Cash and cash equivalents at end of year     5,688 16,245
Bank balances and cash     5,688 16,376
Overdrafts     — (131)
     5,688 16,245 47
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 47
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 (“IFRSs”) as adopted 
by the EU (“adopted IFRSs”). 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 cash flows 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 cash flows. 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 actuaries calculate the Group’s liability in respect of the defined benefit schemes. The actuaries make 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 actuaries. 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 makes provisions where the Board determines 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. 
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.
(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 IFRSs 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:
IFRS 3 (amendment) “Business Combinations”
IAS 24 “Related party disclosures” (revised)
IFRIC 14 IAS 19 “Prepayments of a minimum funding requirement” (amendment)
IFRIC 19 “Extinguishing financial liabilities with equity instruments”
“Improvements to International Financial Reporting Standards 2010”
These standards and interpretations have been adopted by the EU.
The application of these standards and interpretations has not had a material impact on the Group’s reported financial performance or position.  48
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
1 Accounting policies continued
Accounting estimates and judgements continued
(i) Basis of accounting and preparation continued
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 T ax, 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. T o the extent that progress billings exceed costs incurred plus 
recognised profits (less recognised losses) they are recognised as amounts due to construction contract customers.
(v) Segment reporting
The operating segments are based on the components that the Board, the Group’s principal decision-making body (the Chief Operating 
Decision Maker (“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 amortisation and impairment losses. The cost of intangible assets is amortised over 
their expected useful lives. These intangibles relate to customer relationships and contractual rights and are amortised over the period over which 
the Board has determined that future cash flows are likely to arise from these relationships and rights.
(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 and buildings – shorter of fifty years and 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 cash flows 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 cash flows. 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. 49
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 49
1 Accounting policies continued
Accounting estimates and judgements continued
(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 cash flow 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.
(xv) Defined benefit pension schemes
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 schemes expected to arise from employee service in the period is charged to operating 
profit. The expected return on the schemes’ assets and the increase during the period in the present value of the schemes’ 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 defined contribution 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 cash flows 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 cash flows 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 cash flows 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 cash flows 
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. 50
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
1 Accounting policies continued
Accounting estimates and judgements continued
(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.
(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 Engineering 
Services and Specialist Building 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 results both pre and post exceptional 
items. No customer represents more than ten percent of the Group’s revenue.
These segments are:
Engineering Services, 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 and;
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.
(a) Business analysis 
Revenue is analysed as follows: 
     2011 2010 
     £000 £000
Engineering Services     176,715 127,382
Specialist Building     178,902 163,134
Inter-segment revenue     (61) (191)
Segment revenue     355,556 290,325
Central activities     1,111 70
Group revenue from continuing operations     356,667 290,395
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 
 2011 2011 2011 2010 2010 2010
 £000 £000 £000 £000 £000 £000
Engineering Services 7,401 (482) 6,919 4,160  — 4,160
Specialist Building 1,907 (3,332) (1,425) 1,836  — 1,836
Segment operating profit 9,308 (3,814) 5,494 5,996  — 5,996
Central activities (1,507) (1,837) (3,344) (1,478) (571) (2,049)
Operating profit 7,801 (5,651) 2,150 4,518 (571) 3,947
Net financing income 310  — 310 45  — 45
Profit on ordinary activities 
before income tax 8,111 (5,651) 2,460 4,563 (571) 3,992 51
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 51
2 Segmental analysis continued
(a) Business analysis continued 
Balance sheet analysis of business segments
 2011 2010
 Assets Liabilities Net assets Assets Liabilities Net assets 
 £000 £000 £000 £000 £000 £000
Engineering Services 68,495 (55,428) 13,067 43,180 (35,908) 7,272
Specialist Building 125,608 (145,523) (19,915) 122,146 (141,181) (19,035)
Central activities 263,494 (247,670) 15,824 256,848 (231,923) 24,925
Group eliminations (318,745) 318,745  — (308,317) 308,317  —
Group net assets 138,852 (129,876) 8,976 113,857 (100,695) 13,162
Other information
 2011 2010
 Capital   Capital   
 additions Depreciation Amortisation additions Depreciation Amortisation 
 £000 £000 £000 £000 £000 £000
Engineering Services 669 873  — 294 871  —
Specialist Building 180 270  — 266 236  —
Central activities  — 16 404  — 28 320
 849 1,159 404 560 1,135 320
(b) Geographical analysis
Revenue is analysed as follows:
     2011 2010
     £000 £000
UK     355,559 290,395
USA     1,108  —
Group revenue from continuing operations     356,667 290,395
Non-current asset analysis of geographical segments
     Assets Assets
     £000 £000
UK     38,699 18,745
USA     — —
Group non-current assets     38,699 18,745
3 Operating profit 
     2011 2010 
     £000 £000
Operating profit is arrived at after charging/(crediting)
Auditor’s remuneration – audit services      215 187
Depreciation of owned assets     1,060 988
Depreciation of assets held under finance leases     99 147
Operating lease rentals – plant and machinery     66 153
Operating lease rentals – motor vehicles     757 363
Operating lease rentals – other     2,702 2,493
Rental income     (1,161) (1,302)
Profit on sale of property, plant and equipment     (25) (22)
Foreign exchange loss      — 65
During the period, the following services were provided by the Group auditor:
     2011 2010 
     £000 £000
Fees payable to the Company’s auditor for the audit of the financial statements   63 63
Fees payable to the Company’s auditor and its associates for other services:
Audit of the financial statements of the Company’s subsidiaries pursuant to legislation   152 124
Other services related to the acquisition     360 —
Other services related to employment matters      — 11
     575 198
Cost of sales includes £nil (2010: £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 (2010: £nil). 52
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
3 Operating profit continued
Exceptional items and amortisation of intangible assets
     2011 2010
     £000 £000
Redundancy and restructuring costs     3,680  —
Amco acquisition costs     1,357  —
Provision for OFT fine (see Note 23)     200  —
Legal fees in connection with OFT fine (see Note 23)     10 251
Total exceptional items     5,247 251
Amortisation of intangible assets (see Note 9)     404 320
     5,651 571
The Board has determined that certain charges to the income statement should be separately identified for better understanding of the Group’s results.
During the year ended 30 September 2011, the Board determined to withdraw from non-specialist public spending building markets. As a result, the 
Group has incurred redundancy and restructuring costs of £3,680,000 in the year.
In 2011, the Group acquired Amco Group Holdings Limited and incurred £1,357,000 of costs associated with the acquisition. 
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 2011, the Group incurred £10,000 (2010: £251,000) of legal fees in 
connection with its defence in respect of the Office of Fair Trading investigation. The Group’s appeals were determined during the year and the fine 
was paid in September 2011, resulting in a further exceptional charge of £200,000.
The Board has also separately identified the charge of £404,000 (2010: £320,000) 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 Amco Group Holdings Limited. Further details are 
given in Note 9.
4 Finance income and costs
Finance income
Finance income of £167,000 (2010: £205,000) has been earned during the year on bank deposits.
     2011 2010 
     £000 £000
Interest payable:
On bank loans and overdrafts     (379) (2)
Other interest payable     (8) (39)
     (387) (41)
Other finance income/(charges) – defined benefit pension schemes
Expected return on scheme assets     6,997 5,657
Interest on scheme liabilities     (6,467) (5,776)
     530 (119)
Further information on the defined benefit pension schemes is set out in Note 24 to the accounts.
5 Employee numbers and remuneration
     2011 2010 
     Number Number
The average monthly number of employees, including Executive Directors, 
employed in continuing activities during the year was:     2,036 1,280
At 30 September:     2,033 1,347
Production     1,320 788
Administrative     716 492
     2,036 1,280
Cost of staff, including Executive Directors, during the year amounted to:
     2011 2010 
     £000 £000
Wages and salaries     70,619 50,836
Social security costs     7,195 5,337
Other pension costs     3,126 2,742
Share based payments     66 55
     81,006 58,970
Directors’ emoluments
     2011 2010 
     £000 £000
Aggregate emoluments     1,211 957
Highest paid Director: aggregate emoluments     630 492
Details of individual Directors’ emoluments can be found in the Directors’ Remuneration Report on page 35. 53
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 53
6 Income tax expense
(a) Analysis of expense in year
     2011 2010 
     £000 £000
Current tax:
UK corporation tax on profits of the year      — (551)
Adjustments in respect of previous periods     417 (39)
Total current tax     417 (590)
Deferred tax – defined benefit pension scheme     (1,175) (606)
Deferred tax – other timing differences     (397) (60)
T otal deferred tax      (1,572) (666)
Income tax expense     (1,155) (1,256)
(b) Factors affecting income tax expense for the year
     2011 2010 
     £000 £000
Profit before income tax     2,460 3,992
Profit multiplied by standard rate
of corporation tax in the UK of 27% (2010: 28%)     (664) (1,118)
Effects of:
Expenses not deductible for tax purposes     (423) (286)
Timing differences not provided in deferred tax     32  —
Change in tax rate     (6) (116)
Net (charge)/credit in respect of tax losses     (511) 303
Adjustments to tax charge in respect of previous periods    417 (39)
     (1,155) (1,256)
The Group has available further unused UK tax losses of £64m (2010: £61m) to carry forward against future taxable profits. The Group also has 
unused USA tax losses of $31m (£19.4m) (2010: $29m (£18.4m)) 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 £21.7m (2010: £20.6m).
(c) Deferred tax asset
     2011 2010 
     £000 £000
Defined benefit pension scheme     31  —
Accelerated capital allowances     703 660
Other timing differences     308 157
Future tax losses     2,027 2,466
     3,069 3,283
(d) Deferred tax liabilities
     2011 2010 
     £000 £000
Defined benefit pension scheme     (283) (286)
Fair value adjustments     (808) (138)
     (1,091) (424) 54
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
6 Income tax expense continued
(e) Reconciliation of deferred tax asset
     2011 2010 
     £000 £000
As at 1 October     3,283 4,097
Acquisition of Amco Group Holdings Limited     264  —
Origination of timing differences     (464) (40)
Change of deferred tax rate to 26%     (46) (116)
Defined benefit pension scheme – income statement     (1,033) (606)
Defined benefit pension scheme – SOCI     1,065 (52)
At 30 September     3,069 3,283
(f) Reconciliation of deferred tax liability
     2011 2010 
     £000 £000
As at 1 October     (424) (233)
Acquisition of Amco Group Holdings Limited     (952)  —
Arising on fair value adjustments     50 95
Change of deferred tax rate to 26%     60 —
Defined benefit pension scheme – income statement     (142) —
Defined benefit pension scheme – SOCI     317 (286)
At 30 September     (1,091) (424)
7 Dividends
     2011 2010 
     Pence/share Pence/share
Interim (related to the year ended 30 September 2011)    1.00 1.00
Final (related to the year ended 30 September 2010)     2.00 2.00
Total dividend paid     3.00 3.00
        
     £000 £000
Interim (related to the year ended 30 September 2011)    598 598
Final (related to the year ended 30 September 2010)     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 2011. This will 
be accounted for in the 2011/12 financial year.
8 Earnings per share
 2011  2010
 Earnings EPS DEPS Earnings EPS DEPS 
 £000 Pence Pence £000 Pence Pence
Earnings before exceptional costs 5,736 9.58 9.24 3,153 5.26 5.04
Exceptional costs and amortisation (4,431) (7.40) (7.14) (417) (0.69) (0.67)
Basic earnings per share 1,305 2.18 2.10 2,736 4.57 4.37
Weighted average number of shares  59,899 62,093  59,899 62,584
The dilutive effect of share options is to increase the number of shares by 2,194,000 (2010: 2,685,000) and reduce basic earnings  per share 
by 0.08p (2010: 0.20p). 55
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 55
9 Intangible assets
      Contractual 
      rights and 
      customer 
     Goodwill relationships 
     £000 £000
Cost:
At 1 October 2009      9,558 1,072
Additions     —  —
At 30 September 2010     9,558 1,072
Additions     17,428 3,000
At 30 September 2011     26,986 4,072
Impairment losses/amortisation:
At 1 October 2009      — 598
Charge for year     — 320
At 30 September 2010     — 918
Charge for year     — 404
At 30 September 2011     — 1,322
Carrying amount:
At 30 September 2011     26,986 2,750
At 30 September 2010     9,558 154
At 1 October 2009     9,558 474
The carrying amounts of goodwill by operating segment are as follows:
     2011 2010 
     £000 £000
Specialist Building     2,503 2,503
Engineering Services     24,483 7,055
     26,986 9,558
Goodwill of £17,428,000 arose on the acquisition of Amco Group Holdings Limited and will be reviewed for impairment one year after the acquisition 
and then on an ongoing basis as required by IFRS 3 (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 6 years.
In order to test goodwill for impairment the Group performs value in use calculations by preparing cash flow 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 cash 
flows based on conservative estimated growth rates which do not exceed GDP growth in the longer term 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 +3% to +5%. The rate used to discount the forecast 
cash flows 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. 56
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
10 Property, plant and equipment
   Freehold Long leasehold Plant, vehicles  
   land and buildings land and buildings and equipment T otal 
   £000 £000 £000 £000
Cost:
At 1 October 2009   1,821 789 5,024 7,634
Additions    —  — 560 560
Disposals    —  — (623) (623)
At 1 October 2010   1,821 789 4,961 7,571
Additions   5  — 844 849
Disposals   (1,580) (714) (952) (3,246)
Acquisition of subsidiary   1,580  — 602 2,182
At 30 September 2011   1,826 75 5,455 7,356
Depreciation:
At 1 October 2009   18 660 1,588 2,266
Charge for year   19 5 1,111 1,135
Disposals    —  — (520) (520)
At 1 October 2010   37 665 2,179 2,881
Charge for year   19 1 1,139 1,159
Disposals    — (591) (898) (1,489)
At 30 September 2011   56 75 2,420 2,551
Net book value: 
At 30 September 2011   1,770  — 3,035 4,805
At 30 September 2010   1,784 124 2,782 4,690
At 30 September 2009   1,803 129 3,436 5,368
The net book value of assets under finance leases at 30 September 2011 was £655,000 (2010: £149,000). During the year £99,000 (2010: £147,000) 
of depreciation was charged against assets held under finance leases.
11 Inventories
     2011 2010 
     £000 £000
Developments and undeveloped land     8,779 8,392
Raw materials     139 178
     8,918 8,570
£0.9m (2010: £0.8m) of inventories are pledged as security for liabilities.
12 Trade and other receivables
     2011 2010 
     £000 £000
Trade receivables     233 169
Amounts due from construction contract customers     74,518 60,822
Other receivables     8,624 6,037
Prepayments and accrued income     1,526 2,969
     84,901 69,997
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 £3.9m (2010: £3.2m) 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 303 days (2010: 293 days).
Ageing of past due but not impaired receivables:
     2011 2010
     £000 £000
30–180 days     1,185 866
180–365 days     1,174 1,369
Greater than 1 year     1,540 1,013
     3,899 3,248 57
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 57
13 Construction contracts
     2011 2010 
     £000 £000
Contracts in progress at balance sheet date:
Amounts due from construction contract customers included in trade and other receivables   74,518 60,822
Amounts due to construction contract customers included in trade and other payables   (5,654) (8,025)
     68,864 52,797
Contract costs incurred plus recognised profits less recognised losses to date   3,249,997 2,826,312
Less: progress billings     (3,181,133) (2,773,515)
     68,864 52,797
At 30 September 2011 retentions held by customers amounted to £17.8m (2010: £14.8m). Advances received from customers for contract work 
amounted to £5.7m (2010: £8.0m).
Amounts due from construction contract customers which are past due at the reporting date amounted to £3.9m (2010: £3.2m).
This amount includes retention balances of £3.1m (2010: £2.5m). The Group does not hold any collateral over these balances or other trade and 
other receivables.
Contract revenue recognised in the year amounted to £355.6m (2010: £290.3m).
14 Cash and cash equivalents
     2011 2010
     £000 £000
Cash at bank     5,681 16,369
Cash in hand     7 7
     5,688 16,376
15 Trade and other payables 
     2011 2010
     £000 £000
Amounts due to construction contract customers     5,654 8,025
Trade payables     42,115 28,700
Other taxation and social security     2,921 1,873
Other payables     5,119 2,878
Accruals and deferred income     58,734 56,699
     114,543 98,175
16 Borrowings
     2011 2010
     £000 £000
Bank loans and overdrafts repayable:
Within one year     5,000 131
Within two to five years     7,500  —
     12,500 131
The bank loans and overdrafts are secured by a fixed and floating charge over the Group’s assets.
17 Obligations under finance leases
  Present value of minimum 
 Minimum lease payments lease payments
   2011 2010 2011 2010
   £000 £000 £000 £000
Amounts payable under finance leases:
Within one year   308 7 291 6
Within two to five years   376  — 369  —
   684 7 660 6
Less: future finance charges   (24) (1)  —  —
Present value of lease obligations   660 6 660 6
Less: amount due for settlement within twelve months    (291) (6)
Amount due for settlement after twelve months     369  —
It is the Group’s policy to lease certain of its plant, vehicles and equipment under finance leases. The average outstanding lease term is 2 years 
(2010: 1 year). For the year ended 30 September 2011, the average effective borrowing rate was 3% (2010: 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. 58
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
18 Provisions
    Property
    obligations Other Total
    £000 £000 £000
At 1 October 2010    852 500 1,352
Provision decrease during year    (120) (500) (620)
At 30 September 2011    732  — 732
Non-current liabilities    566  — 566
Current liabilities    166  — 166
At 30 September 2011    732  — 732
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 was in respect of the fine levied by the Office of Fair Trading, details of which are given in Note 23.
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.
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 
    Financial assets/(liabilities)
   Fixed rate Fixed  Floating  
   interest rate rate rate Total 
   % £000 £000 £000
2011
Assets 
Sterling   —  — 5,522 5,522
Dollar   —  — 159 159
    — 5,681 5,681
Liabilities 
Sterling   3.0 (660) (12,500) (13,160)
Dollar   — — — —
     (660) (12,500) (13,160)
    Financial assets/(liabilities)
   Fixed rate 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)
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.
The maturity of the fixed rate financial liabilities is disclosed in Note 17. The fixed rate liabilities have a weighted average period of 2 years (2010: 1 year). 59
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 59
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 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 loans and 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 unhedged portion of an inter-company loan. At 30 September 2011 the unhedged portion of the inter-company was 
$1,520,000 (2010: $470,000). The dollar closing exchange rate was $1.56:£1 (2010: $1.58:£1) resulting in a foreign exchange loss of £6,000 being 
charged to finance costs.
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’s net assets are charged to the cumulative translation adjustment within total equity. 
The exchange gain arising on the translation of Lovell America Inc’s net assets was £123,000. The total equity statement would be impacted by 
£40,000 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 and its bank 
loan. A reduction in market interest rates could lead to a reduction in the Group’s interest income and a reduction in its interest costs. Consequently 
a 1% decrease in market interest rates would reduce annual finance costs by £10,000 for every £1m of outstanding loan.
The Group’s hire purchase financial liabilities are all at fixed rates of interest.
20 Share capital 
     2011 2010 
     £000 £000
Allotted, called up and fully paid: 
59,898,927 (2010: 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 2011 or 2010. 60
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
20 Share capital continued
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, 120,263 of the options will vest with 709,140 having lapsed due to the performance criteria not being met.
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 8.5p.
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.
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 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 1 October 2010  5,893 3,896 1,059 217 (3,893)
Transfer from income statement for the year      1,305
Dividends paid      (1,797)
Recognition of share based payments     66 
Exchange differences    123 
Actuarial gain recognised in pension scheme      (5,265)
Movement on deferred tax relating 
to the pension scheme      1,382
At 30 September 2011  5,893 3,896 1,182 283 (8,268)
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 Group’s estimate of shares 
that will eventually vest.
£66,000 has been charged (2010: £55,000) to administrative expenses. 
There is no impact on net assets since an equivalent amount has been credited against 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. 61
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 61
21 Reserves continued
Share based payments reserve continued
Options granted under the Renew Holdings 2004 Executive Share Option Scheme over the Company’s ordinary shares at 30 September 2011 were 
as follows:
Date of grant   7 June 2006  26 November 2008  25 November 2009 T otal
Awards outstanding at 30 September 2011
 – Directors   761,904 120,263 1,312,319 2,194,486 
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.
120,263 of the options granted on 26 November 2008 will vest with 709,140 having lapsed.
There were 2,194,486 options outstanding at 1 October 2011 being those issued in June 2006, November 2008 and November 2009 as detailed above.
22 Capital and leasing commitments
   Land and  Total Total 
   buildings Other 2011 2010 
   £000 £000 £000 £000
Commitments under non-cancellable operating leases:
Under one year   2,600 421 3,021 2,735
T wo to five years   8,209 1,118 9,327 8,057
Five or more years   20,168 — 20,168 21,345
   30,977 1,539 32,516 32,137
With regard to the operating leases held by the Group as lessor, the Group recognised £1,161,000 (2010: £1,302,000) of rental income in the 
income statement for 2011, 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 2011 2010 
   £000 £000 £000 £000
Receivables under non-cancellable operating leases:
Under one year   1,014  — 1,014 827
T wo to five years   1,392  — 1,392 1,840
Five or more years   163  — 163 302
   2,569  — 2,569 2,969
The Group had no capital commitments at 30 September 2011 (2010: £nil).
23 Contingent liabilities
Office of Fair Trading Investigation
Following the Office of Fair Trading (“OFT”) investigation into tender activities within the construction sector, the Company announced the OFT 
decision that Allenbuild Limited (“ Allenbuild”), one of its subsidiaries, and Bullock Construction Limited (“Bullock”), a former subsidiary, should be 
fined £0.5m and £3.0m respectively, with the Company being held jointly and severally liable for these fines.
Renew appealed against the OFT’s decision on a number of counts. Following the decision of the Competition Act Tribunal, which determined the 
appeals, the total fine attributable to Allenbuild and Bullock was reduced from £3.5m to £0.9m.
The fine was paid in September 2011, at a cost to the Group of £0.7m.
Other
Under the terms of the Group’s banking agreement, security over the Group’s assets has been granted to the Group’s bankers. 62
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
24 Employee benefits: Retirement benefit obligations 
Defined benefit pension scheme
The Group operates two defined benefit pension schemes, the Lovell Pension Scheme and the Amco Pension Scheme. Both schemes have been 
closed to new members and to further benefits accrual for several years. 
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 pensions advisors and have determined that they are appropriate. 
The Lovell scheme’s valuation at 30 September 2011 shows a deficit of £119,000 based on the assumptions set out below. The Amco scheme 
shows a surplus of £1,089,000 on the assumptions used in its valuation which are similar to those used for the Lovell scheme except where the 
Directors, in consultation with the scheme’s advisors, consider it appropriate to vary them due to different characteristics of the Amco scheme 
and its membership profile. The Directors have determined that it is appropriate to recognise this surplus as, having reviewed the rules of the 
Amco scheme, they are of the view that the employer, Amalgamated Construction Limited,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 2011 carried out by Lane 
Clark & Peacock LLP , Consulting Actuaries, in respect of the Lovell scheme and Bluefin Corporate Consulting Limited in respect of the Amco 
scheme using the following assumptions:
    30 September 30 September 30 September 
    2011 2010 2009
Lovell Pension Scheme
Rate of increase in salaries    4.0% 4.0% 4.0%
LPI increases to pensions in payment    3.2% 3.2% 3.1%
Discount rate    5.2% 4.9% 5.7%
Inflation assumption (CPI)    2.5% 2.8% —
Inflation assumption (RPI)    3.2% 3.3% 3.1%
Increases in deferred pensions    3.1% 2.8% 3.1%
Amco Pension Scheme
Rate of increase in salaries    4.1%
LPI increases to pensions in payment    3.2%
Discount rate    5.2%
Inflation assumption (CPI)    2.5%
Inflation assumption (RPI)    3.2%
Increases in deferred pensions    3.2%
The mortality tables adopted for the valuation of the Lovell scheme 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. Under these 
assumptions, a 60 year old male pensioner is forecast to live for a further 25.5 years and the live expectancy of a male aged 60 in 2031 is 26.8 years.
The mortality tables adopted for the valuation of the Amco scheme are the S1PA Mortality tables based on the mortality experience of pension 
scheme members with projected longevity improvements and with an additional allowance for future longevity improvements known as the long 
cohort adjustment. The Directors believe that this analysis provides a more reliable estimate of the mortality characteristics of the scheme’s 
membership. Under these assumptions, a 62 year old male pensioner is forecast to live for a further 23.5 years and the life expectancy of a male 
aged 62 in 2031 is 25.6 years.
The assets in the Lovell scheme and the expected rates of return were:
 Value as at Expected rate Value as at Expected rate Value as at Expected rate 
 30 September of return 30 September of return 30 September of return
 2011  2010  2009 
 £000  £000  £000 
Annuities 44,556  505  526 
Diversified portfolio 72,549 6.2% 72,584 6.2% 59,583 6.6%
Bonds —  52,566 5.0% 51,050 5.6%
Cash  1,248 0.5% 324 0.5% 102 0.5%
T otal 118,353  125,979  111,261 
During the year, the Trustees of the Lovell scheme, in consultation with the Directors, used scheme assets to purchase annuities which match certain 
pension liabilities in a transaction known as a “buy in”. This asset provides protection against falls in gilt yields and risks in the performance of other 
asset classes. 63
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 63
24 Employee benefits: Retirement benefit obligations continued 
IAS 19 “Employee Benefits” continued
The assets in the Amco scheme and the expected rates of return were: 
     Value as at Expected rate 
     30 September of return 
     2011  
     £000 
Equities     6,262 7.5%
Gilts      3,000 2.9%
Bonds     3,392 5.2%
Cash      391 0.5%
Total     13,045 
The following amounts at 30 September were measured in accordance with the requirements of IAS 19.
Lovell Pension Scheme
     2011 2010 
     £000 £000
Movements in scheme assets and liabilities
T otal fair value of scheme assets brought forward     125,979 111,261
Expected return on scheme assets     6,219 5,657
Employer contributions     3,764 2,451
Annuities     — 505
Benefits paid     (6,924) (7,009)
Actuarial (loss)/gain on scheme assets     (10,685) 13,114
T otal fair value of scheme assets carried forward     118,353 125,979
Present value of scheme obligations brought forward     124,919 113,612
Interest costs     5,955 5,776
Current service costs     56 85
Annuities     — 505
Benefits paid     (6,924) (7,009)
Actuarial (decrease)/ increase in scheme obligations     (5,534) 11,950
T otal fair value of scheme obligations carried forward     118,472 124,919
(Deficit)/surplus in the scheme     (119) 1,060
Deferred tax     31 (286)
Net (deficit)/surplus     (88) 774
Amount charged to operating profit:
 Current service cost      (56) (85)
      (56) (85)
Amount credited/(charged) to other financial income/(charges): 
 Expected return on scheme assets     6,219 5,657
 Interest on scheme liabilities     (5,955) (5,776)
      264 (119)
Amounts recognised in the statement of comprehensive income: 
 Actual less expected return on scheme assets     (10,685) 13,114
 Effect of change in assumptions on scheme liabilities    5,534 (11,950)
 Actuarial (loss)/gain     (5,151) 1,164
Movement in the net scheme (deficit)/surplus during the year: 
 Net scheme surplus/(deficit) brought forward     1,060 (2,351)
 Current service cost      (56) (85)
 Cash contribution      3,764 2,451
 Other finance income/(expense)     264 (119)
 Actuarial (loss)/gain     (5,151) 1,164
 Net scheme (deficit)/surplus carried forward     (119) 1,060 64
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
24 Employee benefits: Retirement benefit obligations continued 
IAS 19 “Employee Benefits” continued
The following amounts at 30 September were measured in accordance with the requirements of IAS 19.
Amco Pension Scheme 
      2011 
      £000
Movements in scheme assets and liabilities
T otal fair value of scheme assets at date of acquisition     12,679
Expected return on scheme assets      778
Employer contributions      275
Benefits paid      (629)
Actuarial loss on scheme assets      (58)
T otal fair value of scheme assets carried forward      13,045
Present value of scheme obligations at date of acquisition     12,017
Interest costs      512
Benefits paid      (629)
Actuarial increase in scheme obligations      56
T otal fair value of scheme obligations carried forward      11,956
Surplus in the scheme      1,089
Deferred tax      (283)
Net surplus      806
Amount credited to other financial income
 Expected return on scheme assets      778
 Interest on scheme liabilities      (512)
       266
Amounts recognised in the statement of comprehensive income:
 Actual less expected return on scheme assets      (58)
 Effect of change in assumptions on scheme liabilities     (56)
 Actuarial loss      (114)
Movement in the net scheme surplus during the year: 
 Net scheme surplus at date of acquisition      662
 Cash contribution       275
 Other finance income      266
 Actuarial loss      (114)
 Net scheme surplus carried forward      1,089
Lovell Pension Scheme
  2011 2010 2009 2008 2007
Difference between the expected and actual return on 
scheme assets  £(10,685,000) £13,114,000 £8,548,000 £(6,905,000) £(7,960,000)
As a percentage of the assets at the end of the year  (9.0)% 10.4% 7.7% (6.9)% (8.0)%
Experience gains/(losses) on scheme liabilities  £1,349,000 £2,100,000  — £600,000 £(575,000)
As a percentage of the liabilities at the end of the year 1.1% 1.7%  — 0.6% (1.0)%
T otal amount recognised in the statement 
of comprehensive income  £(5,151,000) £1,164,000 £(2,895,000) £(497,000) £(1,804,000)
As a percentage of the liabilities at the end of the year  (4.3)% 0.9% (2.6)% (0.5)% (1.7)%
The Lovell scheme has been in operation for many years and, after taking advice from the Group’s pensions 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. 65
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 65
24 Employee benefits: Retirement benefit obligations continued 
IAS 19 “Employee Benefits” continued
Amco Pension Scheme
      2011
Difference between the expected and actual return on scheme assets     £(58,000)
As a percentage of the assets at the end of the year       (0.4)%
Experience gains on scheme liabilities      £490,000
As a percentage of the liabilities at the end of the year     4.1%
T otal amount recognised in the statement of comprehensive income     £(114,000)
As a percentage of the liabilities at the end of the year      (1.0)%
The Amco scheme’s sole employer is the Company’s wholly owned subsidiary, Amalgamated Construction Limited.
Defined contribution pension scheme
The Group operates a number of defined contribution pension schemes and individual stakeholder pension plans for its employees.
The Group made contributions of £3,126,000 (2010: £2,742,000) into these plans during the year. There are also £169,000  (2010: £192,000).
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, 
J Bishop and D Forbes, whose total compensation amounted to £1,211,000 all of which was represented by short-term employment benefits.
There were no other transactions with key management personnel in the year.
26 Acquisition of subsidiary undertakings
On 23 February 2011, the Company acquired the whole of the issued share capital of Amco Group Holdings Limited (“ Amco”) for a consideration 
of £27.1m, of which £20.9m was paid in cash and £6.2m in deferred consideration.
The value of the assets and liabilities of Amco at the date of acquisition were:
    Book value Adjustments Fair value 
    £000 £000 £000
Non-current assets
Intangible assets  – goodwill    — 17,428 17,428
 – other    — 3,000 3,000
Property, plant and equipment    1,571 611 2,182
Retirement benefit assets    2,628 (1,966) 662
Deferred tax assets    212 52 264
    4,411 19,125 23,536
Current assets
Inventories    10  — 10
Trade and other receivables    22,945  — 22,945
    22,955  — 22,955
Total assets    27,366 19,125 46,491
Non-current liabilities
Obligations under finance leases    (248)  — (248)
Deferred tax liabilities    (736) (216) (952)
    (984) (216) (1,200)
Current liabilities
Borrowings    (2,266)  — (2,266)
Trade and other payables    (15,561) (200) (15,761)
Obligations under finance leases    (125)  — (125)
Current tax liabilities    (86)  — (86)
    (18,038) (200) (18,238)
Total liabilities    (19,022) (416) (19,438)
Net assets     8,344 18,709 27,053 66
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the accounts continued
26 Acquisition of subsidiary undertakings continued
Goodwill of £17,428,000 arises on acquisition and will be reviewed for impairment one year after the acquisition as permitted by IFRS 3. The goodwill 
is attributable to the expertise and workforce of the acquired business. Other intangible assets, provisionally valued at £3,000,000, representing 
customer relationships and contractual rights, were also acquired and will be amortised over their useful economic life in accordance with IFRS 3. 
Amortisation of this intangible asset commenced from April 2011.
The value of freehold land and buildings acquired with Amco and included in property, plant and equipment has been increased from £969,000 to 
£1,580,000 as a result of a fair value adjustment. The freehold land and buildings were independently valued by King Sturge LLP on 4 November 2010. 
The freehold land and buildings were sold for £1,580,000 to a company controlled by Amco’s previous owners as part of the deferred consideration 
settlement on 23 February 2011. At the same time, the remainder of the deferred consideration was settled following the receipt of a debt due 
to Amco by a company controlled by Amco’s previous owners.
The Directors reviewed the actuarial assumptions adopted by the previous board of Amco and decided to adjust the assumptions used to value 
scheme liabilities. In particular, more reliable estimates of the mortality characteristics of the scheme’s membership have been adopted. These 
assumptions are set out in Note 24.
If the acquisition of Amco had occurred on 1 October 2010, Group revenue would have been approximately £386.8m and profit for the year ended 
30 September 2011 would have been approximately £2.1m. 67
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 67
at 30 September
Company balance sheet
     2011 2010 
    Note £000 £000
Fixed assets
Tangible assets    E 675 813
Investments    F 124,184 97,131
     124,859 97,944
Current assets
Stocks and work in progress    G 773 581
Debtors: due within one year    H 23,072 22,670
Cash at bank and in hand    I  — 8,991
     23,845 32,242
Creditors: amounts falling due in less than one year   J (113,526) (104,313)
Net current liabilities     (89,681) (72,071)
Total assets less current liabilities     35,178 25,873
Creditors: amounts falling due after more than one year   K (7,500) —
Net assets     27,678 25,873
Capital and reserves  
Share capital    M 5,990 5,990
Share premium account    N 5,893 5,893
Capital redemption reserve    N 3,896 3,896
Share based payments reserve    N 283 217
Profit and loss account    N 11,616 9,877
Equity shareholders’ funds    O 27,678 25,873
Approved by the Board and signed on its behalf by:
R J Harrison OBE
Chairman 
22 November 2011 68
Renew Holdings plc
Annual Report and Accounts 2011 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
T angible fixed assets are recorded at cost or valuation for certain properties, 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, vehicles and equipment  – two to ten 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 T ax”.
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 defined contribution 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.  69
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 69
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 £3,536,000 (2010: £662,000).
The audit fee charged within the profit and loss account amounted to £63,000 (2010: £63,000).
C Employee numbers and remuneration
     2011 2010 
     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:   34 36
At 30 September:     34 36
Cost of staff, including Executive Directors, during the year amounted to:
     £000 £000
Wages and salaries     2,085 1,975
Social security costs     248 233
Other pension costs     126 116
Share based payments     66 55
     2,525 2,379
Details of individual Directors’ emoluments can be found in the Directors’ Remuneration Report on page 35.
D Dividends
     2011 2010
     Pence/share Pence/share
Interim (related to the year ended 30 September 2011)    1.00 1.00
Final (related to the year ended 30 September 2010)     2.00 2.00
Total dividend paid     3.00 3.00
     £000 £000
Interim (related to the year ended 30 September 2011)    598 598
Final (related to the year ended 30 September 2010)     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 2011. 
This will be accounted for in the 2011/12 financial year.
E Tangible fixed assets 
   Freehold land  Long leasehold Plant, vehicles  
   and buildings land and buildings and equipment T otal 
   £000 £000 £000 £000
Cost:
At 1 October 2010   701 789 306 1,796
Additions    —  — 1 1
Disposals    — (714) — (714)
At 30 September 2011   701 75 307 1,083
Depreciation:
At 1 October 2010   18 665 300 983
Charge for year   10 1 5 16
Disposals    — (591) — (591)
At 30 September 2011   28 75 305 408
Net book value: 
At 30 September 2011   673  — 2 675
At 30 September 2010   683 124 6 813
The Company has no assets held under finance leases or hire purchase agreements. 70
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the company accounts continued
F Investments
      Subsidiary 
      undertakings 
      £000
Shares at cost:
At 1 October 2010      171,913
Additions      27,053
At 30 September 2011      198,966
Provisions:
At 1 October 2010      74,782
Provided during the year      —
At 30 September 2011      74,782
Net book value: 
At 30 September 2011      124,184
At 30 September 2010      97,131
Details of the principal subsidiary undertakings are included in Note S.
The investment in subsidiaries is supported by their net asset values and their discounted expected future cash flows.
G Stocks and work in progress
     2011 2010 
     £000 £000
Undeveloped land     773 581
H Debtors
     2011 2010 
     £000 £000
Due within one year:
Trade debtors     166 97
Due from subsidiary undertakings     22,273 20,565
Other debtors     76 180
Deferred tax      10 10
Prepayments and accrued income     547 1,818
     23,072 22,670
I Cash at bank and in hand
     2011 2010 
     £000 £000
Cash at bank     — 8,991
J Creditors: amounts falling due within one year 
     2011 2010 
     £000 £000
Bank loans and overdrafts     9,751  —
Trade creditors     187 72
Other taxation and social security     753 801
Due to subsidiary undertakings     96,817 97,290
Other creditors     349 282
Accruals and deferred income     5,669 5,868
     113,526 104,313
K Creditors falling due after more than one year
     2011 2010 
     £000 £000
Bank loan     7,500  —
Bank loans and overdrafts repayable:
Within one year     9,751  —
Within two to five years     7,500  —
     17,251  — 71
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 71
L 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 unhedged portion of an inter-company loan. At 30 September 2011 the unhedged portion of the inter-company 
loan was $1,520,000 (2010: $470,000). 
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.
M Share capital
     2011 2010 
     £000 £000
Allotted, called up and fully paid:       
59,898,927 (2010: 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 N. 
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, 120,263 of the options will vest with 709,140 having lapsed due to the performance criteria not being met.
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 8.5p.
The scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the options will lapse.
N Reserves
   Share Capital Share based  
   premium redemption payments Profit & loss 
   account reserve reserve account
   £000 £000 £000 £000
At 1 October 2010    5,893 3,896 217 9,877
Transfer from profit and loss account for the year      3,536
Recognition of share based payments     66 
Dividends paid      (1,797)
At 30 September 2011   5,893 3,896 283 11,616
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 Company’s estimate of shares 
that will eventually vest.
£66,000 has been charged (2010: £55,000) to administrative expenses. 
There is no impact on net assets since an equivalent amount has been credited against 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. 72
Renew Holdings plc
Annual Report and Accounts 2011 Notes to the company accounts continued
N Reserves continued
Share based payments reserve continued
Options granted under the Renew Holdings 2004 executive Share Option Scheme over the Company’s ordinary shares at 30 September 2011 were 
as follows:
Date of grant   7 June 2006  26 November 2008  25 November 2009 T otal
Awards outstanding at 30 September 2009
 – Directors   761,904 120,263 1,312,319 2,194,486
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. 120,263 of the 
options granted on 26 November 2008 will vest with 709,140 having lapsed.
There were 2,194,486 options outstanding at 1 October 2011 being those issued in June 2006, November 2008 and November 2009 as detailed above.
O Reconciliation of movements in equity shareholders’ funds
     2011 2010 
     £000 £000
Profit for the year     3,536 662
Dividends paid     (1,797) (1,797)
Recognition of share based payments     66 55
At 1 October 2010     25,873 26,953
At 30 September 2011      27,678 25,873
P Capital and leasing commitments
   Land and  Total Total 
   buildings Other 2011 2010 
   £000 £000 £000 £000
Annual commitments under non-cancellable 
operating leases expiring in:
Under one year    — 4 4 7
T wo to five years    — 19 19 15
Five or more years   1,462  — 1,462 1,557
   1,462 23 1,485 1,579
The Company has capital commitments at 30 September 2011 of £nil (2010: £nil).
Q 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
Following the Office of Fair Trading (“OFT”) investigation into tender activities within the construction sector, the Company announced the OFT 
decision that Allenbuild Limited (“ Allenbuild”), one of its subsidiaries, and Bullock Construction Limited (“Bullock”), a former subsidiary, should be 
fined £0.5m and £3.0m respectively, with the Company being held jointly and severally liable for these fines.
Renew appealed against the OFT’s decision on a number of counts. Following the decision of the Competition Act Tribunal, which determined the 
appeals, the total fine attributable to Allenbuild and Bullock was reduced from £3.5m to £0.9m. The fine was paid in September 2011, at a cost to the 
Group of £0.7m.
R Defined contribution pension scheme
The Company operates a number of defined contribution pension schemes and individual stakeholder pension plans for its employees.
The Company made contributions of £126,000 (2010: £116,000) into these plans during the year. There are also £9,000 (2010: £10,000) of accruals 
relating to these plans. 73
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 73
S 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.
  Incorporation & Proportion of 
  principal place Ordinary Shares 
  of business held by the 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 Infrastructure Ltd Owned by subsidiary  England and Wales 100%
V .H.E. 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%
Amalgamated Construction Limited Owned by subsidiary  England and Wales 100%
Lovell America, Inc Owned by Renew Holdings plc USA 100%
T 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, 
J Bishop and D Forbes, whose total compensation amounted to £1,211,000 all of which was represented by short-term employment benefits.
There were no other transactions with key management personnel in the year. 74
Renew Holdings plc
Annual Report and Accounts 2011 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) 
D Forbes  (Independent Non-executive)
Registrars
Capita Registrars 
PO Box 504 
Beckenham 
BR3 4GU
Auditor
KPMG Audit Plc 
1 The Embankment 
Neville Street 
Leeds 
LS1 4DW 
Financial PR
Walbrook PR Ltd 
4 Lombard Street 
London 
EC3V 9DH
Nominated advisor and broker
Brewin Dolphin 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 75
Renew Holdings plc
Annual Report and Accounts 2011
Accounts 75
Shareholder information
Shareholder information
Annual General Meeting 25 January 2012
Results   Announcement of interim results – May 2012 
    Preliminary announcement of full year results – November 2012 
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. 76
Renew Holdings plc
Annual Report and Accounts 2011 Amco
Whaley Road 
Barugh 
Barnsley 
South Yorkshire 
S75 1HT 
T el: 01226 243413
Seymour
30–34 	 Navigation 	 P oint 
Hartlepool 
TS24 0UQ 
T el: 01429 223 521
Shepley Engineers
Robinson House 
W estlakes 	 Science 	 P ark 
Moor Row 
Cumbria 
CA24 3HY 
T el: 01946 599 022
VHE
Phoenix 	 House 
Hawthorn 	 P ark 
Coal Road 
Seacroft 
Leeds 
LS14 	 1PQ 
T el: 0113 273 9200
Allenbuild (South East)
Unecol House 
819 London Road 
North Cheam 
Surrey 
SM3 9BN 
T el: 020 8335 4800
Britannia
Britannia House 
Staverton 	 T echnology 	 P ark 
Cheltenham 
Gloucestershire 
GL51 6TQ 
T el: 01452 859 880
Walter Lilly
Waddon House 
283 Stafford Road 
Croydon 
Surrey 
CR0 4NN 
T el: 020 8730 6200 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 2011