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delivering specialist
construction services
annual report  accounts   2006
renew holdings plc annual report  accounts 2006
87379renewra2006cover page fc 87379renewra2006cover page bc
87379renewra2006coverqxp  81206  1938  page 1 produced by salient communications tel 01635 861112
annual report  accounts 2006
highlights 01
chairman’s statement 02
chief executive’s review 03
review of operations 05
financial review 13
directors’ report 14
directors’ remuneration report 18
corporate governance 21
statement of directors’ responsibilities 23
independent auditors’ report 24
group profit  loss account 25
group statement of total recognised gains  losses 25
balance sheets 26
group cash flow statement 27
notes to the accounts 28
shareholder information 52
directors  advisors 53
notice of annual general meeting 54
group businesses 56
87379renewra2006cover page ibc 87379renewra2006cover page ifc
87379renewra2006coverqxp  81206  1938  page 2 87379renewra2006text page 1
highlights
01
turnover 
from ongoing
operations £3417m
2005 £3301m
profit
before tax
£46m
2005 £12m
earnings 
per share
100p
2005 35p
net cash
balance at 
30 september £194m
2005 £136m
full year
dividend
12p
2005 02p
87379renewra2006textqxp  81206  1706  page 1 annual report  accounts 2006
chairman’s statement
02
87379renewra2006text page 2
introduction
i am pleased to report that the group has
made good progress over the past year all of
the group’s businesses are trading profitably
and are generating corresponding levels of
cash these results do not include any
exceptional items and the board remains
confident that historic contract exposures are
fully provided for – evidence that the group is
in good health
further and stronger focus on particular areas
of specialism where the group has strong
skills and experience continues to enhance
the quality and visibility of earnings flow 
this is highlighted in more detail in the chief
executive’s report that follows the board
remains committed to improving the group’s
health and safety performance and is pleased
to note the progress made during the year 
results and dividend
group turnover from ongoing operations for
the year ended 30 september 2006 was
£3417m 2005 £3301m and profit before
tax was £46m 2005 £12m earnings per
share were 1000p 2005 346p the
group’s net cash balance exclusive of a
specific development loan of £98m at 
30 september was £194m 2005 £136m
net assets have increased to £53m from
£48m after the impact of incorporating a
£28m net pension scheme deficit
the board is declaring a final dividend of 
08p per share which will be paid on 
26 february 2007 to shareholders on the
register as at 26 january 2007 this will 
result in a dividend of 12p per share for the
full year 2005 02p reflecting the group’s
progressive dividend policy and the board’s
confidence in the group’s future performance 
acquisition
during the year the group acquired pps
electrical limited an electrical contractor
specialising in asset support for the nuclear
sector for £664000 in cash pps has been
successfully integrated into shepley engineers
and is trading in line with expectations 
pension scheme
in line with many other uk companies the
directors in calculating the group’s pension
position have adopted mortality tables which
now reflect the expectation of a longer
lifespan for pension fund members as a
result the directors have recognised a
pension deficit of £28m on the group
balance sheet net of deferred tax compared
to a surplus of £16m at 30 september 2005 
board changes
on 1 may 2006 john samuel fca joined the
board as group finance director and philip
underwood stepped down from the board to
concentrate on running vhe construction and
shepley engineers on 1 october 2006 
john bishop fca joined as nonexecutive
director john bishop has extensive
experience in the construction industry and
over 20 years plc experience at main board
level on 31 october 2006 arnold wagner
obe stepped down from the board to
concentrate on his executive responsibilities 
at smiths group plc 
outlook 
the positive actions taken by the new
management team augur well for the future
and the board is confident of making further
progress in both profitability and cash
generation in the new financial year
roy harrison
chairman
28 november 2006 
87379renewra2006textqxp  81206  1706  page 2 chief executive’s review
03
overview and strategy 
this has been a year of further positive
development for the group and i am pleased
to be reporting a good performance across all
our businesses this is the result of our
strategy of focusing on attractive market
sectors in which we have good skills and
experience whilst providing effective support
and control from the centre through our
holding company structure 
this approach allows our individual specialist
construction businesses to build on the
strength of their own brands within their areas
of operation whilst benefiting from the
financial strength commercial controls and
implementation of best practice procedures
from the group’s central function thereby
maximising the use of group resources 
this has resulted in a better quality order
book which at 30 september 2006 was
£2087m compared to £193m at the same
time last year excluding the future benefits of
current frameworks 78 of total orders now
lie within our core specialist activities and
68 of new orders in 2006 were procured
through a twostage framework or negotiated
process with key clients over 70 of our
orders won have been from clients with whom
we have worked previously 
as a continuation of our strategy of specialism
and project selectivity and in order to
maximise the potential of our skills base and
provide consistent and cash generative
growth we will be aligning our activities into
two focused business streams namely
specialist engineering and specialist building
specialist engineering will incorporate our
nuclear and land remediation activities and
specialist building will operate across a range
of regionally based selective markets
including social housing retail restoration 
refurbishment and science  education 
through our specialist engineering activities
we have established a good market position
and our intention is now to build on our
reputation both through organic growth and
through strategic acquisitions the objective of
our specialist building activities is to continue
to generate reliable returns whilst focusing on
margin improvement and cash generation
review of operations
in nuclear we were reappointed on major 
threeyear framework agreements with british
nuclear group to provide further operational
asset support and decommissioning and
demolition services on a number of redundant
facilities at sellafield during the year we
acquired pps electrical limited based at
sellafield which has significantly enhanced 
our service offering strengthening shepley
engineers’ position as the largest mechanical
and electrical contractor at this site 
in land remediation we project managed
and carried out the reclamation of the former
stella south power station in gateshead for
st paul’s developments and are currently
delivering site clearance and infrastructure
works at the former rugeley power station 
for persimmon homes due for completion in
september 2007 we are also delivering
remediation works for national grid property
under a framework agreement for its ukwide
portfolio of redundant gas works 
in social housing we are now working in the
south east with five of the top six housing
associations during the year we have
successfully completed a £165m project 
for community housing association and 
have also been appointed by the same client
as a key framework contractor in total we
have over £80m of future work in negotiation
with various housing associations as
preferred supplier 
in retail we completed a major distribution
warehouse for tesco during the year as 
well as new build and refurbishment projects
for three major stores we have been 
working with tesco for over 20 years now
demonstrating the strength of our relationship
we are also constructing a range of other
87379renewra2006text page 3
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chief executive’s review
04
87379renewra2006text page 4
retail projects including a bq store in
folkestone and the refurbishment of the
cribbs causeway retail park in bristol for
prudential assurance 
in science  education we secured a £13m
project for the british library we are also
carrying out numerous projects for the
department for environment food and 
rural affairs through our current framework
agreement which is now in its sixth year we
have recently established another framework
agreement with the national physical
laboratory during the year we completed
schemes at a number of colleges and
universities including a new build extension 
at imperial college london and the new
institute of cancer therapeutics at bradford
university as part of framework agreements
with these clients 
in restoration  refurbishment we are
restoring the wrought and cast iron victorian
roof and undercroft structures of the grade 1
listed st pancras station in london which will
be the new hub for the channel tunnel rail
link we continue to secure major contracts
to restore and refurbish very high quality
residential properties in the west of london
both for private individuals and property
investment businesses additionally we have
extended our customer base in rail
infrastructure refurbishment
we are also starting to see the benefits of
offering clients multiple and complementary
services as is evidenced by a £15m public
sector project in lancashire which was
completed on time and to budget 
this presold integrated development project
combined the construction skills of allenbuild
and the land remediation capabilities of 
vhe construction
property
the group continues its strategy of
maximising the value of our portfolio of uk
and us property assets and progressively
realising them for cash during the year we
sold our head office building at cornhill in
london for £12m as well as two other uk
properties which realised over £6m together
this enabled the group to eliminate over
£12m of associated borrowings in the usa
we have generated more than £3m of cash
through asset realisations
people
the group attaches great importance to the
health and safety of all those affected by our
activities at the start of the financial year i set
out a target of decreasing the accident
incident rate by 10 per annum and i am
pleased to report that we achieved a 19
reduction during the year
the group is now well on its way to recovery
following what has been a difficult period 
the board is pleased to note a significant
improvement in the group’s employee
retention rate and is extremely grateful to 
all our people for their hard work and
dedication in helping to bring the business
back to health we have an experienced
management team in place and i am
confident that with the continued support of
everyone in the group we will see further
success in delivering on our strategy 
prospects
vigorous business processes are now
established across all of the group’s activities
through increased focus on the strengths of
our two specialist business streams which
operate in robust and growing markets we
expect to further develop our order book and
to deliver consistent growing profits
supported by strong cash generation 
brian may
chief executive
28 november 2006 
87379renewra2006textqxp  81206  1813  page 4 review of
operations
review of operations  
each of renew’s construction businesses is 
trading profitably with contracts performing in line 
with expectations 
risk management and contract selectivity have been
further strengthened with detailed assessments being
undertaken at various times during the tender and 
precontract phase this process identifies potential
projects which are likely to carry a disproportionate 
risk in relation to the anticipated profit and
demonstrates our determination to reduce risk and
produce a reliable financial performance 
the executive management committee has been
formed which consists of the main board executive
directors the managing directors of the operating
businesses and the heads of the group’s support
services the committee meets once a month to 
review business performance and operational activity
and to share new ideas and best practice looking to
add value to our business and our clients where
opportunities exist to work together
05
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review of operations    
06
87379renewra2006text page 6
nuclear 
specialist engineering within the nuclear
sector is delivered through shepley engineers
a major mechanical and electrical contractor
and project manager and its subsidiaries
west cumberland engineering ltd wcel
and pps electrical limited pps
shepley’s work at sellafield springfield 
and chapelcross power stations is split
between operational asset support and the
decommissioning and demolition of redundant
facilities contracts are generally secured
through framework arrangements two of
which have been recently renewed for another
three years shepley which has over 25 years
experience on the sellafield site has received
over 30 commendations for work done during
the year an especially notable event was the
first ever demolition of a building within the
controlled area at sellafield 
digital modelling techniques and investment 
in and use of computerised management
technology give shepley an edge in what is
perceived as a labour intensive market
2
million
hours
time passed
without a riddor
reportable lost 
time accident 
shepley’s capability was further strengthened
in june with the acquisition of pps electrical
limited which specialises in asset support for
the nuclear sector the combined business is
now the largest mechanical and electrical
contractor at sellafield in addition wcel
secured a threeyear contract to manage 
and provide machined and fabricated spares
on the site
the nuclear sector is one of the most highly
regulated in the world where safety is
paramount in 2006 shepley distinguished
itself by winning a rospa president’s award
for securing ten consecutive gold awards
shepley wcel and pps have now achieved
two million hours without a riddor
reportable lost time accident
land remediation
vhe is a leading provider of land remediation
services with a varied public and private
sector client base
vhe has extensive experience in reclaiming
brownfield land utilising inhouse designed
specialist
engineering
 the first ever demolition 
within the controlled 
area at sellafield required 
intensive planning 
including digital modelling
of the building
87379renewra2006textqxp  81206  1914  page 6 07
and developed solutions which apply innovative
and sustainable services such as specialist
biophysical treatment soil washing stabilisation
and groundwater treatment to maximise the
value of redundant land a current remediation
project is the £46m reclamation of the former
stella south power station in gateshead for
st paul’s developments that includes the
biophysical treatment of hydrocarbon
contaminated materials for reuse on site
reusing materials recovered from site is a
key component in vhe’s strategy in reducing
brownfield regeneration costs and promoting
sustainability the company beat its own target
of recycling 11 million tonnes of materials
during the course of the year producing
substantial cost savings
demolition and site clearance together with
infrastructure works is provided as part of a
complete enabling package to enable clients
to be on site more quickly for development
a key project due for completion in september
2007 is the £47m remediation of the former
rugeley power station this involves the
reengineering of over 450000m
3
of materials
on site to provide development platforms and
road corridors for a 700 unit residential
development for persimmon homes 
national grid property formerly british gas
property division also retains vhe under a
term contract for the remediation of its
ukwide portfolio of redundant gas works
this agreement has provided work on five
contracts during the year
1 1
the amount of
material recycled
by vhe saving
clients an
estimated £5m
vhe has a commitment to sustainability 
and its recycling initiative has diverted some
300000 tonnes of treated material from
landfill as well as creating 800000 tonnes of
reusable aggregates of which half are high
specification road building materials
million
tonnes
87379renewra2006text page 7
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review of operations    
08
87379renewra2006text page 8
social housing
through its allenbuild subsidiary the group 
is now one of the leading contractors within
the new build social housing market in the
south east
allenbuild is working for five of the top six
housing associations and following the
successful completion of a £165m project in
london for community housing group was
recently appointed by them as a framework
contractor in the categories of £310m and
£10m plus
a £55m project to provide 40 flats is
underway for logic homes formerly gentect
homes in crawley there is a pipeline of 15
further schemes worth £59m under preferred
supplier negotiations with the same client  
two design and build projects are also under
construction for london  quadrant housing
trust a £86m contract in forest hill 
london will provide 42 residential units 10
livework units and seven commercial outlets
on the site of a former factory the second
scheme involves the £5m construction of 
37 apartments and a crèche in deptford 
and forms part of the regeneration of the
pepys estate
a key component of allenbuild’s success is
the use of modern methods of construction
timber frames bathroom pods and other 
prefabricated items have contributed to
reduced construction programmes improved
quality and cost certainty
in the midlands allenbuild is constructing 
30 new two and threebedroom houses and
onebedroom flats at redditch in conjunction
with redditch cooperative homes this
£35m project is the fourth carried out in
partnership with accord in redditch other
schemes are also being undertaken for 
south kesteven district council and amber
valley housing association
specialist
building
schemes under
preferred supplier
negotiation with
logic homes 
£
59m
87379renewra2006textqxp  81206  1706  page 8 09
retail
building upon its 22 year relationship with
tesco britannia construction completed its
largest project for the retailer a £189m
238000 sq ft distribution centre at magor in
south wales britannia construction also
completed new stores at llansamlet in
swansea and brockworth in gloucester and
is currently working on an extension to the
cheltenham store 
britannia is also constructing a range of other
retail projects including the shell for a bq
store in folkestone and the refurbishment of
the cribbs causeway retail park in bristol for
prudential assurance
new store developments refits and
refurbishments are also undertaken by
britannia for a number of other leading
retailers such as aldi following the
construction of a new store in swindon
britannia has completed a further 10 projects
the most recent being the conversion of two
former kwik save stores in rhymney and
llandrindod wells in south wales
allenbuild has amassed a solid portfolio of
retail expertise especially in retail parks
phase two of the three lakes retail park 
in selby entailed the construction of a 
43000 sq ft store to provide a retail area 
and fitness club in hull allenbuild built the
twilight zone a 22000 sq ft extension to 
the deep one of the region’s most popular
visitor attractions a £33m audi showroom
and garage was also completed by allenbuild
in waltononthames
following the successful completion of a
project at the crystal peaks retail park in
sheffield in 2005 the client hermes has
awarded allenbuild a further £5m contract to
redevelop a supermarket on the same site
science and education
walter lilly is in the sixth year of a framework
agreement with the department for
environment food and rural affairs defra
at the veterinary laboratories agency in
weybridge the mills building on the site was
a winner in the 2006 breeam awards
bespoke category as well as winning the
relationship 
with tesco
22
renew companies are at the
cuttingedge of the science and
education sector delivering a
wide range of premises for the
major universities and
pharmaceutical companies
year
87379renewra2006text page 9
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10
87379renewra2006text page 10
sustainability category in the regional rics
awards 2006
the company completed its first framework
project for imperial college london at their
south kensington campus a new build
extension housing their cross faculty nmr
imaging facility the first contract has also
been awarded under a framework from the
national physical laboratory npl at
teddington to modify existing laboratories
work is ongoing for glaxosmithkline’s
research and development arm where 
walter lilly has completed more than 40
capital projects since 1991
allenbuild continued to develop its presence 
in the education sector completing a number
of schemes for schools colleges and
universities three projects worth £10m
including the new institute of cancer
therapeutics were completed under a three
year framework agreement with the university
of bradford allenbuild also secured a £13m
project to construct a highdensity archive
storage building for the british library at
boston spa yorkshire
40
capital projects
completed for
glaxosmithkline
since 1991 
87379renewra2006textqxp  81206  1706  page 10 11
restoration and refurbishment
restoration and refurbishment often involving
extensive structural change is a skill delivered
by a number of group companies one of 
the most high profile projects is the restoration
of the grade 1 listed st pancras station in
london which will be the new hub for the
ctrl the wrought and cast iron victorian
structural roof and undercroft has been restored
by shepley under a threeyear contract
yjl london continues to serve the city and
west end markets and has broadened its
portfolio with two student accommodation
projects located on adjacent sites the
refurbishment of one property involves the
demolition and replacement of staircases 
and lift shafts together with the construction
of two new floors the company has also
entered into a framework with guy’s and 
st thomas’s hospital trust on the back of its
extensive healthcare expertise in clerkenwell
yjl london completed the £85m
refurbishment of a former victorian workshop
removing the roof and constructing a fifth
storey along with repositioning lift shafts on 
a constricted site
additionally allenbuild is restoring the 
reform club in pall mall to the original design
by renowned victorian architect sir charles
barry as well as the wood end museum of
natural history in scarborough for
scarborough borough council
grade1
st pancras station
and the reform
club both being
refurbished and
restored by renew 
 bespoke designs require 
high quality craftsmanship
to meet the requirements 
of discerning clients 
87379renewra2006text page 11
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annual report  accounts 2006
12
many of walter lilly’s bespoke private
residential projects involve the complete
internal remodelling of prime central london
properties often behind just a retained
facade principally operating in belgravia
kensington chelsea and hampstead the
projects involve numerous structural
challenges including the protection of
neighbouring properties where underpinning
or work to party walls is required work 
on projects in kensington and chelsea is
continuing for longstanding client cadogan
estates a sixth london office refurbishment
project has also commenced with developer
redab plc 
yjl infrastructure yjli is a leading provider
of construction services for rail operators and
asset providers in london and the south
east active in the rail sector for more than 
25 years the company has carried out
construction works on every station and train
depot on london underground’s network as
well as on over 450 mainline rail stations and
20 mainline train depots
during the past year yjli has continued to
modernise and refurbish underground stations
with three stations – golders green stockwell
and morden – all being completed on
schedule work has commenced on a further
three stations for tube lines – belsize park
bounds green and hampstead – together
with step free access projects at morden
and golders green yjli has also recently
started an upgrade of facilities for gner at
their bounds green depot
450
mainline rail
stations and 20
mainline train
depots worked 
on by yjli
 yjli is undertaking 
step free access 
projects alongside the 
modernisation and 
enhancement programme
of london underground 
stations 
87379renewra2006textqxp  81206  1707  page 12 results
the group’s turnover from ongoing operations
was £3417m 2005 £3301m resulting in an
operating profit of £35m 2005 £27m prior 
to exceptional items profit before tax was
£46m 2005 £12m
cash generation
the group’s operating performance has 
been complemented by strong cash
generation both from operations and from 
the successful realisation of surplus property
assets excluding the impact of funding a
major uk development project and the
proceeds of property disposals operating
activities generated £36m of cash
substantiating the cash backed nature of 
our operating profit
the sales of surplus uk properties including
the head office building at cornhill in 
london generated over £18m of gross
proceeds which enabled us to redeem over
£12m of associated debt we have leased
back a small portion of the building under a 
twoyear agreement
at the year end our net cash position was
£96m after deducting a £98m development
loan the board expects to redeem that loan
in december 2006 with the proceeds of the
sale of the development the sale was
originally agreed in february 2006
lovell america inc
the group has approximately £13m of net
assets in the usa where lovell america inc
is progressively realising these assets for cash
repatriation to the uk this process has led to
more than 28 of the us assets being in the
form of cash or receivables at the year end
compared to less than 4 last year 
pensions
incorporating mortality assumptions which
predict longer lives for pension fund members
has created a gross deficit of £4m in the
lovell pension scheme which was closed 
to new members in 2000 at the moment
company contributions remain unchanged at
approximately £12m per year the board 
will shortly seek to reach agreement with the
trustees of the scheme on the level of 
future contributions in accordance with the
scheme specific funding requirements of the
pensions act
taxation
a deferred tax asset of £29m is carried in the
balance sheet recognising an increase of
£14m in the year which results from the likely
future utilisation of tax losses through the
improved and profitable trading of the group
john samuel
group finance director
28 november 2006
financial review
13
87379renewra2006text page 13
87379renewra2006textqxp  81206  1707  page 13 00
30 
20
10
2006 2007 2008 2009
target 2
actual 1
profit before tax as a percentage of sales
directors’ report
14
the directors present their report and the audited
accounts for the year ended 30 september 2006
principal activities
for the year ended 30 september 2006 the principal
activity of the group was in construction and construction
related activities the main construction activities are
carried out in the united kingdom with some development
activities in the usa more details of these activities the
year’s trading and future developments are contained in the
chairman’s statement the chief executive’s review the
review of operations and the financial review a list of the
principal operating subsidiaries and joint ventures of the
group as at 30 september 2006 appears on page 51
results and dividends
the group made a profit for the year before taxation 
of £4639000 2005 £1175000 the group profit
attributable to shareholders was £5988000 
2005 £2074000 the directors recommend the
payment of a final dividend on ordinary shares of 08p
2005 02p giving a total for the year of 12p 2005 02p
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 the target given for profit before tax as a
percentage of sales is a mediumterm target which the
directors are aiming to achieve within three 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 these measures have
been introduced by the chief executive who was
appointed in june 2005 as a result comparative
performance statistics are not available for the prior year 
for the key performance indicators
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
62

63
64
65
66
67
68
69
70
71
72
actual 69
target not less than 66
2006
percentage of orders from repeat clients

62
64
66
68
70
72
74
76
78
80
82
actual 78
target not less than 66
2006
percentage of orders in specialist sectors

08
09
10
11
12
13
14
15
16
17
18
20
19
actual 19
target 10 improvement
2006
improvement in accident incident rate
annual report  accounts 2006
87379renewra2006text page 14
87379renewra2006textqxp  81206  1707  page 14 directors’ report
15
acceptance of the group’s services levels of demand in
the market restrictions to market access competitive
pressure on pricing or additional costs failure to retain or
recruit key personnel and overall economic conditions
a risk inherent in the construction industry occurs in the
nature timing and contractual conditions which exist at the
time of contract procurement to mitigate these risks the
group has a system of precontract and pretender 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 shortterm 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 debtors and trade creditors that
arise directly from its operations the group also uses
foreign currency borrowings to hedge certain of the
currency risks arising from the group’s overseas
operations it is and has been throughout the period under
review the group’s policy that no trading in financial
instruments shall be undertaken the main risks arising
from the group’s financial instruments are interest rate risk
liquidity risk and foreign currency risk
price risk
the group has no significant exposure to securities price
risk as it holds no listed equity investments
cash flow interest rate risk
the group borrows in sterling at floating rates of interest
under the terms of overdraft and bond facilities with barclays
bank plc and bank of scotland plc interest rates are linked
to london interbank offer rate libor and the bank’s
base rates hence enabling the group to track market
interest rates the group also has a loan arrangement with
the bank of scotland plc at floating rates of interest under a
separate agreement interest bearing assets comprise cash
and bank deposits and earn interest at floating rates
liquidity risk
the group’s policy is to ensure availability of operating
funds by maintaining an appropriate cash balance in both
current and deposit accounts and to establish appropriate
levels of borrowing facilities to provide shortterm flexibility 
foreign currency risk
as a result of the investment in operations in the united
states movements in the us dollarsterling exchange rate
could materially affect the group’s balance sheet the
group seeks to limit the effect of this currency exposure 
by using foreign currency borrowings to hedge these
investments against currency depreciation the principal
hedging instrument used by the group is a us loan that
was taken out on 8 november 2000 when the us to £stg
rate was 1446 the original hedge amounted to us25m
and this has been reduced to us155m by the receipt of
funds from the us in the intervening period the current
hedging arrangements expire in november 2008 as at 
30 september 2006 £12979000 2005 £13639000 
of the group’s net 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
debtors 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 debtors
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
environment
the group’s policy with regard to the environment is to
ensure that we understand and effectively manage the
actual and potential environmental impact of our activities
our operations are conducted such that we comply with all
legal requirements relating to the environment in all areas
where we carry out our business during the period
covered by this report the group has not incurred any
fines or penalties or been investigated for any breach of
environmental regulations
payment of creditors 
the group recognises the importance of good relationships
with its suppliers and subcontractors 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
c ensure that payments are made in accordance with 
the terms of the contract or order providing that the
presented documentation is complete and accurate 
the company’s average creditor days during the year
were 44 days 2005 30 days
87379renewra2006text page 15
87379renewra2006textqxp  81206  1707  page 15 directors’ report
16
annual report  accounts 2006
87379renewra2006text page 16
donations
charitable donations made by the group during the year
amounted to £19467 2005 £12170 the group made
no political donations during the year 2005 £nil
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 noticeboard
statements and newsletters keeps them informed of the
group’s progress the directors are actively considering
ways to increase further the involvement of employees in
the group’s performance
the group continues to be committed to the health safety
and welfare of its employees and to observe the terms of
the health  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 
retrain 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 
brian may continues as the designated board director of
health and safety with group responsibility for safety and
environmental management health safety and
environmental management issues and reports are
regularly reviewed at group board meetings with the head
of department in attendance when necessary the
executive management committee chaired by the chief
executive discusses and progresses policy legislative
changes best practice training needs inspections audits
internal and external performance measurement and
statistical information all topics are discussed with a
specific focus on improvement
control at business level remains with subsidiary managing
directors who are required to appoint a director who is
responsible for safety and environmental matters both
safety and environmental issues are discussed as the first
agenda item at monthly board meetings each business
safety and environmental meeting encourages open
communication between all employees and is a key part of
the group’s efforts to gather and disseminate good practice
for inclusion in businessbased management systems
minimum safety and environmental standards are
contained within the new bespoke business safety and
environmental management systems that are in the
process of being launched this new system is based on
group activities and provides specific standards
procedures information forms and advice which
accommodates 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 six group safety and
environmental advisors
certain group companies employ their own specialist
advisors who liaise directly with the group hse director on
common issues the group maintains its membership with
the royal society for the prevention of accidents rospa
and locallybased construction safety groups all safety and
environmental department personnel hold membership with
the institution of occupational safety and health iosh
these advisors undertook 1271 monitoring inspections
and reports during the last 12 month period attendance
on the five day citb site safety management training
scheme continues to be a requirement for all construction
management personnel with a twoday refresher required
every five years a oneday directors and senior managers
course is available internally and is used to introduce new
systems and detail changes to construction legislation
expected in april 2007 short duration ‘tool box talks’ and
‘safety briefings’ are increasingly used to enhance the
knowledge and competence of supervisory management
group policy requires each business to report and record
all injuries diseases and dangerous occurrences
regardless of severity an incident database is maintained
to collate this information and provide statistical data
allowing performance to be measured and determine
system amendment and future training requirements a
system of safety and environmental alerts ensures lessons
learnt and changes to working practices are rapidly
transmitted to our workforce businesses and their
contractors the accident incidence rate air for the 12
month period to 30 september 2006 measured on the
standard base line of 100000 persons at work is a key
area where the group measures its performance at the
start of the financial year the chief executive set a target of
reducing air by 10 per annum against this taxing target
the group actually achieved a 19 reduction
directors
the present directors of the company are set out below 
john samuel fca was appointed as group finance
director on 1 may 2006 phil underwood stood down as 
a director on the same date john bishop fca was
appointed an independent nonexecutive director on 
1 october 2006 arnold wagner obe stood down as a
non–executive director on 31 october 2006 
87379renewra2006textqxp  81206  1707  page 16 directors’ report
17
messrs samuel and bishop will offer themselves for 
reelection at the annual general meeting “agm” the
director retiring by rotation is brian may who being eligible
offers himself for reelection at the agm 
brief biographical details of the present directors are set 
out below
nonexecutive directors
john bishop  director 61 appointed to the board as a
nonexecutive 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 12 years at
morgan sindall plc as development director and latterly as
finance director he is currently chairman of clc group
plc a leading uk building maintenance business and
primary medical property limited a specialist property
investment company
roy harrison  director 59 appointed to the board as a
nonexecutive director in november 2003 subsequently
appointed executive chairman in march 2004 reverting to
nonexecutive chairman with effect from 1 october 2005
he is a former chief executive of the tarmac group and
has a number of investing director positions in private
construction materials companies roy is a nonexecutive
director of bss group plc president of the construction
products association a member of the government’s
strategic forum for construction chairman of thomas
telford city technology trust the no 1 uk comprehensive
school and chairman of thomas telford online a major
curriculum provider
executive directors
brian may  director 55 appointed to the board as chief
executive officer in june 2005 he is a chartered civil
engineer who progressed his career in tarmac subsequently
holding a number of senior positions in mowlem plc before
becoming chief executive of laing construction plc and
more latterly hbg construction ltd brian is also a 
nonexecutive director of parkwood holdings plc
john samuel  director 50 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 john 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
wwwrenewholdingscom 
directors’ interests
the beneficial interests of the directors in the shares of the
company and options for shares are set out on page 20
no director has any interest in any other group company
details of the directors’ remuneration and service contracts
appear on pages 19 and 20
substantial shareholdings
at 28 november 2006 the following shareholders had
notified interests of 3 or more in the company’s issued
ordinary share capital
number of shares percentage
anglo irish trust company ltd
as trustees of the
og mclaughlin settlements 4000000 668
johan claesson and 
connected parties 3930723 656
goldman sachs international 3575324 597
g merrett 2323250 388
v tchenguiz 2000000 334
share capital
during the current financial year the company has not
bought back any of its own shares nor issued any new
share capital and as a result the total number of shares in
issue remains at 59898927 as at 30 september 2006 
disclosure of information to auditors
at the date of making this report each of the company’s
directors as set out on this page confirm the following
• so far as each director is aware there is no relevant
information needed by the group’s auditors in
connection with preparing their report of which the
group’s auditors are unaware and
• each director has taken all the steps that he ought to
have taken as a director in order to make himself
aware of any relevant information needed by the
group’s auditors in connection with preparing their
report and to establish that the group’s auditors are
aware of that information
auditors
rsm robson rhodes llp have expressed their willingness
to continue in office as auditors to the group and a
resolution will be proposed at the forthcoming agm to 
reappoint rsm robson rhodes llp and to authorise the
directors to determine their remuneration
approval
the board approved the report of the directors on 
28 november 2006
by order of the board
catherine wright llb fcis
company secretary
87379renewra2006text page 17
87379renewra2006textqxp  81206  1707  page 17 directors’ remuneration report
18
annual report  accounts 2006
87379renewra2006text page 18
the directors present the directors’ remuneration report
the “remuneration report” for the financial year ended 
30 september 2006 as an aim listed company renew is
not required to prepare the report in accordance with the
directors’ remuneration report regulations 2002 the
“regulations” which introduced new requirements in
respect of financial periods ending on or after 
31 december 2002 however the directors recognise the
importance and support the principles of the regulations
and would normally seek to follow them to the extent
considered relevant for an aim listed company
the auditors are not required to report to the shareholders
on the directors’ remuneration report 
remuneration committee
following the appointment of roy harrison as executive
chairman in march 2004 there was only one independent
nonexecutive director on the board and the committee
was rendered inquorate the board therefore decided in
july 2004 to temporarily suspend all committees roy
harrison’s previous role as an executive director precludes
him from being considered as independent under the
combined code the “code” and so the board has
decided to continue to review remuneration matters as a full
board any matters normally reserved for consideration by
the remuneration committee are currently decided upon by
the full board with any individual having a personal interest
in the matter under consideration not taking part in the
meeting the board held 10 meetings during the financial
year to discuss remuneration arrangements
the remuneration committee’s normal 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 as it is designated 
to consider
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
e to ensure contractual terms on termination and
payments made are fair to the individual and company
and that failure is not rewarded
nonexecutive 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 crossdirectorships and no daytoday 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 their 
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 upperquartile 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 nonexecutive 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 board in its
capacity as remuneration committee and increased
where the committee believes that adjustments are
appropriate to reflect performance increased
responsibilities andor 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 
share option plans
the renew 2004 executive share option scheme formerly
known as the montpellier 2004 executive share option
scheme the “2004 esos” approved at the extraordinary
87379renewra2006textqxp  81206  1707  page 18 directors’ remuneration report
19
general meeting “egm” held on 11 march 2004 replaced
the lovell 1995 executive share option scheme during
the year 761904 options were granted under the 2004
esos to the executive directors there are no other
options outstanding under the scheme the renew
savings related share option scheme formerly known as
the montpellier savings related share option scheme the
“renew saye” also approved at the egm on 11 march
2004 replaced the old saye scheme rules which expired
on 20 january 2004 there are no options outstanding
under the latter scheme and no new grants have been
made under the renew saye 
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 provides retirement benefits for executive
directors and employees through independent pension
schemes the assets of these schemes are held by trustees
and managed by independent investment managers 
the retirement age of the executive directors is 65 messrs
may and samuel are not members of these schemes and
do not receive pension contributions from the company
service contracts and letters of appointment
the company’s policy is for the executive directors to have
12month rolling service contracts that provide for a 
12month notice period the nonexecutive directors do not
have service contracts the nonexecutive directors have
letters of appointment concerning amongst other things the
initial terms for which they are appointed a general statement
of their role and duties and the fees they will receive as a
director the fees of nonexecutive directors are determined
by the full board within the limits set out in the memorandum
and articles of association the nonexecutive directors are
not eligible for bonuses pension benefits share options or
other benefits the letters of appointment do not contain a
provision for termination payments the directors are
indemnified to the full extent permitted by statute under the
articles of association the service contracts and letters of
appointment of the directors who served during the year
ended 30 september 2006 include the following terms
directors executive letter or contract date of contract unexpired terms notice period  
nonexecutive of appointment or letter months months
j bishop nonexecutive letter 4 october 2006 36 1
r harrison nonexecutive letter 7 october 2005 24 1
b may executive contract 20 june 2005 rolling one year 12
p underwood executive contract 29 april 2004 rolling one year 12
j samuel executive contract 17 may 2006 rolling one year 12
a wagner obe nonexecutive letter 25 november 2003 0 1
 p underwood resigned as a director on 1 may 2006 but remains an employee
 a wagner obe resigned as a director on 31 october 2006
 j bishop was appointed on 1 october 2006
directors’ remuneration
information is provided below for directors who served during the financial year and as at 30 september 2006
notes salaryfees bonuses benefits pension total total
contributions emoluments emoluments
2006 2005
£000 £000 £000 £000 £000 £000
executive directors
b may 2 3  4 250 138 22 25 435 56
j samuel 3  4 83 46 7 8 144 
p underwood 3  4 110 74 10 13 207 298
r harrison 1 250
former directors 2 389
786 993
nonexecutive directors
fees
r harrison 1 50    50 
a wagner obe 25    25 25
75 25
87379renewra2006text page 19
87379renewra2006textqxp  81206  1707  page 19 directors’ remuneration report
20
annual report  accounts 2006
87379renewra2006text page 20
1 r harrison’s appointment reverted to nonexecutive chairman with effect from 1 october 2005 he was issued with a
replacement service letter dated 7 october 2005 at a salary of £50000 pa and a review date of 1 october 2007
2 the highest paid director for 2006 was b may who received emoluments of £410000 excluding pension contributions
and the highest paid director for 2005 was j gaffney who received emoluments of £365000 excluding pension
contributions of £24000 and who resigned on 30 august 2005 
3 benefits include car allowances and certain medical cover for the director and immediate family 
4 messrs may samuel and underwood received salary payments in lieu of company pension contributions which are
paid through payroll and taxed as salary
directors’ share options
options were granted to messrs may and samuel under the renew esos on 7 june 2006 as set out in the table below no
other options lapsed were exercised or were awarded during 2005 or 2006 the market price of the company’s shares at
30 september 2006 was 615p and the range of market prices during the year was between 3325p and 62p
information is provided below for directors who served during the financial year and as at 30 september 2006
number of options number of options date of exercise earliest expiry of
at start of year at end of year awardgrant price £ exercise date exercise period
1 october 2005 30 september 2006
executive directors
b may  476190 7 june 2006 0525 8 june 2009 8 june 2016
j samuel  285714 7 june 2006 0525 8 june 2009 8 june 2016
directors’ share interests
those directors serving at the end of the year had interests in the share capital of the company at 30 september 2006 
as follows
ordinary shares of £010 each
30 september 2006 30 september 2005
r harrison 60000 60000
b may 105000 105000
j samuel 130000 
a wagner obe 40000 40000
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 28 november 2006 and signed on its behalf by
r harrison
chairman
87379renewra2006textqxp  81206  1707  page 20 corporate governance
21
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 because of this the
directors would normally seek to follow the code to the
extent considered relevant for an aim listed company but
have been unable to achieve compliance with the code in
a number of areas this year primarily because of the lack
of independent nonexecutive directors for much of the
year and to date these matters are explained in further
detail in the sections below 
the board of directors
the board currently comprises the chief executive officer
the nonexecutive chairman one executive director and
one independent nonexecutive director brief biographies
of the directors are given on page 17
as the company has only had one independent non
executive director within the meaning of the code during
the year it has not been compliant with the requirement of
the code that more than half of the board should be
comprised of independent nonexecutive directors 
the composition of the board is reviewed regularly the
board identified the need for both additional executive and
nonexecutive directors the board in its capacity as
nomination committee considered internal and external
candidates leading to the appointment of a new group
finance director during the year and after the year end
the appointment of john bishop as a nonexecutive
director 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 10 times in the year plus committee
meetings dealing with the daily business of the company
being held as necessary the board receives written and
oral reports from the executive directors ensuring matters
are considered fully and enabling directors to discharge
their duties properly there is a formal schedule of matters
reserved for the board’s decision ensuring the maintenance
of control over strategic financial and operational matters
in addition the directors have access to the advice and
services of the company secretary and procedures are in
place for them to seek independent professional advice if
necessary at the company’s expense
board committees
following the appointment of r harrison as executive
chairman on 24 march 2004 a wagner obe became the
sole independent nonexecutive director and the audit
remuneration and nomination committees were rendered
inquorate the board therefore decided in july 2004 to
temporarily suspend all committees since the committees
were rendered inquorate any matters normally reserved for
consideration by the committees have been decided upon
by the full board with any individual having a personal
interest in the matter under consideration not taking part in
the meeting as at 1 october 2005 r harrison reverted to
nonexecutive chairman however his role as an executive
director prevents him from being considered as
independent under the combined code 2003 the board
has decided therefore to continue to consider the above
committee matters as a full board and will reinstate the
committees as soon as it is in a position to do so
in normal circumstances the board delegates clearly defined
powers to its audit general purposes remuneration and
nomination committees each of the board’s committees
has carefully drafted terms of reference 
the remuneration committee 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 18 to 20
the nomination committee monitors the composition of the
board and recommends the appointment of new directors
the board in its capacity as nomination committee has held
two meetings during the year to discuss nomination matters
the nomination 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
d to make recommendations to the board on the
contents of letters of appointment directors’ duties 
reappointment or reelection of directors upon
conclusion of a specified term or retirement 
by rotation
the company ceased to comply with the code guidance
section c 31 that the audit committee should comprise
of at least two nonexecutive directors following the
appointment of r harrison as an executive director the
board in its capacity as audit committee has held five
meetings to consider audit committee business the
directors propose to appoint john bishop as chairman of
the board for the purposes of audit committee business
following the approval of the 2006 accounts in normal
circumstances the audit committee considers the
87379renewra2006text page 21
87379renewra2006textqxp  81206  1707  page 21 corporate governance
22
annual report  accounts 2006
87379renewra2006text page 22
adequacy and effectiveness of the risk management and
control systems of the group and reports the results to the
board it reviews the scope and results of the external
audit its cost effectiveness and the objectivity of the
auditors the audit committee monitors the nonaudit
work performed by the auditors to help ensure that the
independence of the auditors is maintained the audit
committee also reviews the interim statement the
preliminary announcement and accounting policies 
the general purposes committee is constituted by two
executive directors and considers routine daytoday
business decisions which are then reported to the board 
internal controls
throughout the financial year to 30 september 2006 and
up to the date of approval of the report and accounts the
group has fully complied with the relevant provisions of the
code and the turnbull 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 company 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 selfexamination 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
shortterm 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 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
due to the size and nature of the group the board does
not consider that an internal audit function is necessary
however it is continuing to review this position
going concern
after making enquiries the directors 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
article 144 of the articles of association provides 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 company is
available on the company’s website
wwwrenewholdingscom 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 24 january 2007 the notice for
which is set out on page 54 the notice contains special
business including the renewal of the board’s power to
allot equity shares brief details of the purpose and effect of
the proposed resolutions are set out on page 55 of the
notes to 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 
28 november 2006
by order of the board
catherine wright llb fcis
company secretary
87379renewra2006textqxp  81206  1707  page 22 statement of directors’ responsibilities
23
statement of directors’ responsibilities 
the directors are responsible for preparing the annual
report and the financial statements in accordance with
applicable law and regulations
company law requires the directors to prepare financial
statements for each financial year under that law the
directors have elected to prepare the financial statements
in accordance with united kingdom generally accepted
accounting practice united kingdom accounting
standards and applicable law the financial statements are
required by law to give a true and fair view of the state of
affairs of the company and the group and of the profit or
loss of the group for that period in preparing these
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
• state whether applicable united kingdom accounting
standards have been followed subject to any material
departures disclosed and explained in the accounts
and
• prepare the accounts on the going concern basis
unless it is inappropriate to presume that the company
will continue in business
the directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the company and the group and
enable them to ensure that the financial statements comply
with the companies act 1985 they are also responsible for
safeguarding the assets of the company and the group and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities
the directors are responsible for the maintenance and
integrity of the corporate and financial information on the
group’s website legislation in the united kingdom
governing the preparation and dissemination of the financial
statements and other information included in annual
reports may differ from legislation in other jurisdictions
87379renewra2006text page 23
87379renewra2006textqxp  81206  1707  page 23 24
annual report  accounts 2006
87379renewra2006text page 24
independent auditors’ report
independent auditors’ report to the shareholders 
of renew holdings plc for the year ended 
30 september 2006
we have audited the financial statements on pages 25 to
51 these financial statements have been prepared under
the accounting policies set out therein
this report is made solely to the company’s shareholders
as a body in accordance with section 235 of the
companies act 1985 our audit work has been undertaken
so that we might state to the company’s shareholders
those matters we are required to state to them in an
auditors’ report and for no other purpose to the fullest
extent permitted by law we do not accept or assume
responsibility to anyone other than the company and the
company’s shareholders as a body for our audit work for
this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual
report and the financial statements in accordance with
applicable law and united kingdom accounting standards
united kingdom generally accepted accounting practice
are set out in the statement of directors’ responsibilities
our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements
and international standards on auditing uk and ireland
we report to you our opinion as to whether the financial
statements give a true and fair view and have been
properly prepared in accordance with the companies act
1985 we also report to you whether in our opinion the
information given in the directors’ report is consistent with
the financial statements
in addition we report to you if in our opinion the
company has not kept proper accounting records if we
have not received all the information and explanations we
require for our audit or if information specified by law
regarding directors’ remuneration and other transactions is
not disclosed
we read other information contained in the annual report
and consider whether it is consistent with the audited
financial statements the other information comprises only
the directors’ report the chairman’s statement the chief
executive’s review and the corporate governance
statement we consider the implications for our report if
we become aware of any apparent misstatements or
material inconsistencies with the financial statements 
our responsibilities do not extend to any other information
basis of audit opinion
we conducted our audit in accordance with international
standards on auditing uk and ireland issued by the
auditing practices board an audit includes examination
on a test basis of evidence relevant to the amounts and
disclosures in the financial statements it also includes an
assessment of the significant estimates and judgements
made by the directors in the preparation of the financial
statements and of whether the accounting policies are
appropriate to the group’s circumstances consistently
applied and adequately disclosed
we planned and performed our audit so as to obtain all the
information and explanations which we considered
necessary in order to provide us with sufficient evidence to
give reasonable assurance that the financial statements are
free from material misstatement whether caused by fraud
or other irregularity or error in forming our opinion we also
evaluated the overall adequacy of the presentation of
information in the financial statements
opinion
in our opinion
• the financial statements give a true and fair view of the
state of affairs of the company and the group as at 
30 september 2006 and of the group’s profit for the
year then ended
• the financial statements have been properly prepared in
accordance with the companies act 1985 and
• the information given in the directors’ report is
consistent with the financial statements
rsm robson rhodes llp
chartered accountants and registered auditors
birmingham
28 november 2006
87379renewra2006textqxp  81206  1707  page 24 25
87379renewra2006text page 25
group profit  loss account
for the year ended 30 september 2006
turnover group  share of joint ventures 365266 457750
less share of joint ventures’ turnover 2823 2714
ongoing operations 341698 330113
discontinuing operations 20745 39052
total continuing operations 362443 369165
discontinued operations  85871
group turnover 2 a 362443 455036
cost of sales 2 b 328393 437409
gross profit 34050 17627
administrative expenses 2 b 30577 37689
other operating income 3  53
group operating profitloss 3473 20009
income from joint ventures  
profit from ongoing operations before exceptional items 3473 2687
exceptional items 2 c  19845
profitloss from ongoing operations after exceptional items 2 b 3473 17158
profitloss from discontinuing operations 2 b  8351
total profitloss from continuing operations 2 b 3473 25509
profit from discontinued operations 2 b  5500
total operating profitloss before interest including share of joint ventures 2 b 3473 20009
profit on disposal of subsidiary company 2 d  22300
profit on ordinary activities before interest 3473 2291
interest receivable 1561 921
interest payable 4 1437 1597
other finance incomecharges  frs 17 pension 4 1042 440
profit on ordinary activities before taxation 4639 1175
taxation credit on ordinary activities 6 1349 899
profit for the financial year 5988 2074
basic earnings per ordinary share 8 1000p 346p
diluted earnings per ordinary share 8 995p 346p
note total total
2006 2005
£000 £000
profit for the financial year 5988 2074
dividends paid 7 360 
exchange movement in reserves 22 119 171
movements in defined benefit pension scheme 28 6175 1216
movement on deferred tax relating to the defined benefit pension scheme 1186 1006
total recognised gains and losses for the year 520 319
note total total
2006 2005
£000 £000
group statement of total recognised gains  losses
for the year ended 30 september 2006
87379renewra2006textqxp  81206  1707  page 25 balance sheets
at 30 september 2006
fixed assets
intangible assets goodwill 9 4527 4602  
tangible assets 10 3819 14930 209 298
investments 11   83672 83672
investments in joint ventures 12
loans to joint ventures 561 438  
share of gross assets 4429 9704  
share of gross liabilities 1722 5276  
3268 4866  
11614 24398 83881 83970
current assets
stocks and work in progress 13 18673 9573  
debtors due after more than one year 14 4346 5751  580
debtors due within one year 14 77093 72836 23987 24951
current asset investments 15  6089  6089
cash at bank and in hand 16 19735 13590 13951 15579
119847 107839 37938 47199
creditors amounts falling due in less than one year 17 121555 115020 105473 113641
net current liabilities 1708 7181 67535 66442
total assets less current liabilities 9906 17217 16346 17528
creditors amounts falling due after more than one year
longterm debt 18  8363  
other creditors 19 1821 4058  
net assets excluding pension liability 8085 4796 16346 17528
pension liability 28 2769   
net assets 5316 4796 16346 17528
capital and reserves
share capital 21 5990 5990 5990 5990
share premium account 22 5893 5893 5893 5893
capital redemption reserve 22 3896 3896 3896 3896
revaluation reserve 22 73 73 73 73
profit and loss account 22 10536 11056 494 1676
equity shareholders’ funds 23 5316 4796 16346 17528
approved by the board and signed on its behalf by
r harrison
chairman
28 november 2006
note group group company company
restated restated
2006 2005 2006 2005
£000 £000 £000 £000
26
annual report  accounts 2006
87379renewra2006text page 26
87379renewra2006textqxp  81206  1707  page 26 27
87379renewra2006text page 27
group cash flow statement
for the year ended 30 september 2006
net cash inflowoutflow from operating activities 29 10661 25338
returns on investments and servicing of finance
interest received 1561 921
interest paid 1437 1597
124 676
taxation
net corporation tax paid 36 
capital expenditure and financial investment
payments to acquire tangible fixed assets 1291 640
proceeds on sale of tangible fixed assets 393 225
loans advanced torepaid by joint ventures 149 200
1047 215
acquisitions and disposals
acquisition of a subsidiary net of cash acquired 664 
proceeds from sale of subsidiaries and businesses  21343
proceeds from sale of equity loans  1894
cash obtaineddisposed on acquisitiondisposal of subsidiaries and businesses 65 3380
599 19857
equity dividends paid to shareholders 360 
cash inflowoutflow before financing 8743 6372
financing
movement in shortterm borrowings 3600 3600
repayment of mortgage 8363 
additional development loans 9795 
finance lease payments 686 623
2854 2977
increasedecrease in cash during the year 5889 3395
reconciliation of net cash flow to movement in net funds
increasedecrease in cash during the year 5889 3395
movement in borrowings 2556 2977
changes in net funds arising from cash flows 8445 6372
other noncash movements 256 1680
movement in net funds during the year 8701 8052
opening net funds 269 8321
closing net funds 8970 269
note total total
2006 2005
£000 £000
87379renewra2006textqxp  81206  1707  page 27 notes to the accounts
i basis of accounting
the accounts have been prepared on the going concern
basis and in accordance with applicable accounting
standards under the historical cost convention modified by
the revaluation of certain long leasehold land and buildings
updated for the adoption of frs 21 and frs 25 dividend
distributions are now recognised as a liability in the period
in which they are approved by the company’s shareholders
and have necessitated the restatement of the accounts 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 and include the
attributable share of the results and net assets of joint
ventures the results and net assets of undertakings
acquired are included in the group profit and loss account
and balance sheet using the acquisition method of
accounting from the effective date of acquisition the
results of undertakings disposed of are included to the
effective date of disposal subsidiary undertakings have
been consolidated using the acquisition method of
accounting and joint ventures are included in accordance
with the accounting policies noted below
iii joint ventures
in the normal course of business the group invests in joint
ventures which are classified as fixed asset investments
joint ventures arise where the group has a participating
interest in an entity and shares the control of its strategic
and operating policies joint ventures are accounted for
using the gross equity method of accounting where
necessary adjustments are made on consolidation to bring
the results and net assets of joint ventures into line with
group accounting policies
iv investments in subsidiaries
investments in subsidiaries are recorded at cost less
provision for impairment
v goodwill
goodwill is the difference between the amount paid on the
acquisition of a business and the aggregate fair value of its
separable net assets goodwill arising on acquisitions prior
to 30 september 1997 has been written off directly against
the profit and loss reserve and has not been reinstated on
implementation of frs 10 “goodwill and intangible assets”
as allowed by the standard goodwill arising on acquisition
of subsidiaries after 1 october 1997 is capitalised in the
balance sheet and is being amortised over its estimated
useful economic life up to a maximum of 20 years
reviews for impairment of goodwill are performed at the
end of the first full financial year following the related
acquisition and thereafter if events indicate that the
carrying value may not be recoverable on the sale of a
subsidiary undertaking any goodwill relating to the
disposed subsidiary is written off in the year
vi longterm contracts
longterm contracts are stated at cost plus attributable
profit after providing for anticipated future losses and
contingencies progress payments received are deducted
from these amounts cost includes attributable overheads
longterm contract work in progress is recorded in turnover
on a monthly basis as the contract proceeds and therefore
is included in debtors as amounts recoverable on contracts
vii stocks and work in progress
stocks and work in progress comprise developments and
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 stocks
viii current asset investments
current asset investments are stated at the lower of cost
and net realisable value
ix tangible fixed assets
tangible 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 investment properties 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 and buildings  fifty years
long leasehold land  shorter of fifty years 
and buildings and remainder of lease
• plant and vehicles  three to ten years
• office equipment  two to seven years
changes in the revalued amounts of assets carried at
valuations are taken directly to the revaluation reserve
upon disposal the balance of any revaluation reserve
relating to the property sold is transferred to the profit 
and loss account in reserves
28
annual report  accounts 2006
87379renewra2006text page 28
1 accounting policies
87379renewra2006textqxp  81206  1707  page 28 29
87379renewra2006text page 29
notes to the accounts
1 accounting policies continued
the landfill developments owned by the group were
included in tangible fixed assets at open market valuation
for existing use within these accounts depreciation was
charged at a rate that matched the net income derived
from the landfill operation until the asset was completely
written down full provision was made for the net present
value of the group’s landfill site rectification costs an asset
was also recognised in relation to these future costs which
has been amortised on the basis of tonnages deposited
over the expected useful life of the site
x deferred taxation
the payment of taxation is deferred or accelerated
because of timing differences between treatment of certain
items for accounting and taxation purposes full provision
for deferred taxation is made under the liability method
without discounting on timing differences that have arisen
but not reversed by the balance sheet date unless such
provision is not permitted by frs 19 “deferred tax”
deferred tax assets are recognised to the extent it is
considered more likely than not that they will be recovered
in accordance with frs 19 deferred tax is not provided in
respect of
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 nonmonetary 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
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
and also in respect of the pensions deficit recorded under
frs 17 where the directors consider that the asset will be
utilised by the expected profitability of the group
xi turnover
turnover which excludes sales within the group and 
value added tax comprises
• value of work executed during the year on 
construction contracts
• sales of properties and land based upon 
legal completions
xii 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 the accounts of overseas subsidiary
and joint venture undertakings are translated at the rate of
exchange ruling at the balance sheet date the exchange
difference arising on the retranslation of the opening net
assets is taken directly to reserves together with differences
on foreign currency borrowings to the extent that they are
used to finance or provide a hedge against group equity
investments in foreign enterprises all other exchange
differences are taken to the profit and loss account
xiii 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 remaining lease term if
shorter the interest element of the rental obligation is
charged to the profit and loss account and represents a
constant proportion of the balance of capital repayments
outstanding rentals under operating leases are charged
to the profit and loss account on a straightline basis over
the term of the lease
xiv defined benefit pension scheme
the group has fully adopted the requirements of frs 17
“retirement benefits” the defined benefit scheme was
closed to new members in june 2000 and in august 2001
the board decided that no further benefits would accrue to
existing members with more than five years expected
service life remaining these members were transferred to
the defined contribution plan but retained the benefit
earned to that date under the defined benefit scheme the
pension scheme assets are measured using market values
pension scheme liabilities are measured using the
projected unit actuarial method and are discounted at the
current rate of return on a high quality corporate bond of
equivalent term and currency to the liability any increase in
the present value of liabilities within the group’s defined
benefit scheme expected to arise from employee service in
the period is charged to operating profit the expected
return on the scheme’s assets and the increase during the
period in the present value of the scheme’s liabilities arising
from the passage of time are included in other finance
income actuarial gains and losses are recognised in the
consolidated statement of total recognised gains and losses
87379renewra2006textqxp  81206  1707  page 29 notes to the accounts
30
1 accounting policies continued
pension scheme surpluses to the extent they are
considered recoverable under the guidance of frs 17 or
deficits are recognised in full and presented on the face of
the balance sheet net of related deferred tax
further information on the structure of the defined benefit
scheme is contained within note 28 of these accounts
xv defined contribution pension scheme
contributions to the defined contribution scheme are
charged to the profit and loss account as incurred
2 a segmental analysis
external turnover is analysed as follows
construction businesses 338187 450367
other 27079 7383
turnover group and share of joint ventures’ turnover 365266 457750
less share of joint ventures’ turnover 2823 2714
external turnover 362443 455036
analysed as to
ongoing operations 341698 330113
discontinuing operations 20745 39052
continuing operations 362443 369165
discontinued operations  85871
external turnover 362443 455036
the directors have not disclosed segmental information relating to the profitslosses and net assets since they are of the
opinion that to fully comply with the requirements of ssap 25 “segmental reporting” would be seriously prejudicial to the
interests of the group
2006 2005
£000 £000
annual report  accounts 2006
87379renewra2006text page 30
87379renewra2006textqxp  81206  1707  page 30 31
87379renewra2006text page 31
notes to the accounts
group turnover 341698 20745 362443 330113 39052 85871 455036
cost of sales 308017 20376 328393 316373 43600 77436 437409
gross profit 33681 369 34050 13740 4548 8435 17627
administrative expenses 30208 369 30577 30951 3803 2935 37689
other operating income    53   53
group operating profitloss
before exceptional items 3473  3473 2687 2045 5500 6142
exceptional items    19845 6306  26151
group operating profitloss
after exceptional items 3473  3473 17158 8351 5500 20009
income from joint ventures       
total operating profitloss
before interest including
share of joint ventures 3473  3473 17158 8351 5500 20009
profit on disposal of
subsidiary undertakings  22300
profit on ordinary activities
before interest 3473 2291
i discontinuing operations
discontinuing operations relates to the activities of yjl construction excluding yjl infrastructure in 2005 discontinuing
operations included the shopfitting activities of britannia joinery this activity is shown as discontinuing as it does not meet
the definition of discontinued as defined by frs 3
ii discontinued operations
discontinued operations relates to the activities of bullock construction limited which was sold on 16 september 2005
as detailed in note 26
2006 2005
ongoing discontinuing total ongoing discontinuing discontinued total
activities activities activities activities activities
£000 £000 £000 £000 £000 £000 £000
2 b analysis of operations
87379renewra2006textqxp  81206  1707  page 31 notes to the accounts
32
2 c operating exceptional items
the operating profitloss includes the following amounts that the directors regard as exceptional because of their value
and nature but which do not fall to be recorded as nonoperating exceptional items under the requirements of frs 3
“reporting financial performance”
reduction in pension deficit following
settlement of liabilities i  3650 
cost of incentives to members connected
to the settlements i  1111 
 2539 
contract losses on specific problem
contracts incepted in prior years ii   15437 4758
impairment of fixed assets and current asset investments iii   1749 
redundancy and reorganisation costs iv   454 1289
other nonrecurring costs v   4744 
closure costs vi    259
  19845 6306
with the exception of contract losses which have been included within cost of sales all of the exceptional chargescredits
have been included within administrative expenses
i defined benefit pension scheme
during the year ended 30 september 2005 the directors made a number of offers to deferred members of the scheme to
transfer their entitlements under the defined benefit scheme to a defined contribution arrangement and a number of offers
to pensioners of the scheme to buy out certain benefits attributable under the scheme the figure recorded above shows
the movement on the frs 17 actuarial deficit relating to these transfers and the costs reflect the sums paid to facilitate
these transfers
ii contract losses
during the year ended 30 september 2005 the group suffered a number of contractual issues that related to contracts
procured during or before 20022003 where the difficulties relating to these contracts were not identified in prior periods
iii impairment of fixed assets and current asset investments
provision was made in the year ended 30 september 2005 against the value of certain properties
iv redundancy and reorganisation costs 
during the year ended 30 september 2005 a number of exceptional costs which primarily related to redundancies were
incurred as a result of reorganisations within the group which did not constitute a fundamental reorganisation as defined
by frs 3
v other nonrecurring costs
during the year ended 30 september 2005 the group incurred £47m of nonrecurring costs in respect of the resolution
of legacy noncontract issues
vi closure costs
provision in respect of the remaining costs of discontinuing yjl construction’s contracting division
year ended 30 september 2006 year ended 30 september 2005
ongoing discontinuing ongoing discontinuing
£000 £000 £000 £000
annual report  accounts 2006
87379renewra2006text page 32
87379renewra2006textqxp  81206  1707  page 32 33
87379renewra2006text page 33
profit on disposal of subsidiary companies  22300
profit on disposal of subsidiary companies in year ended 30 september 2005 relates to the sale of 
bullock construction limited  further details are set out in note 26
2 e company profit and loss account
as permitted by section 230 of the companies act 1985 the company has not presented its own profit and loss
account the loss after taxation for the financial year dealt with in the accounts of the company was £1182000 
2005 profit £9065000
3 operating profit
operating profit is arrived at after chargingcrediting
auditors’ remuneration  audit services company £74000 2005 £89000 193 210
depreciation of owned assets 1113 2089
depreciation of assets held under finance leases 410 568
amortisation of goodwill 306 303
impairment of current asset investments  1299
impairment of long leasehold assets  450
operating lease rentals  plant and machinery 33 278
operating lease rentals  motor vehicles 306 365
operating lease rentals  other 3400 3437
rental income 2158 2273
profit on sale of fixed assets  78
profit on sale of current asset investments 544 
foreign exchange losses 163 500
other operating income comprises
overage payments  13
other income  40
 53
during the period the following services were provided by the group auditor
fees payable to the company’s auditor for the audit of the financial statements 74 89
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 119 121
services related to corporate finance transactions  142
other services related to taxation 64 70
257 422
year ended year ended
30 september 30 september
2006 2005
£000 £000
2006 2005
£000 £000
2006 2005
£000 £000
notes to the accounts
2 d nonoperating exceptional items
87379renewra2006textqxp  81206  1707  page 33 notes to the accounts
34
4 interest payable and other finance incomecharges
interest payable
on bank loans and overdrafts 1375 1313
other interest payable 62 284
1437 1597
other finance incomecharges  frs 17 pension
expected return on scheme assets 6452 5431
interest on scheme liabilities 5410 5871
1042 440
further information on the pension scheme is set out in note 28 to the accounts
5 employee numbers and remuneration
the average monthly number of employees
including executive directors during the year was 1322 1794
at 30 september 1326 1378
the analysis of the average monthly number of employees including executive directors during the year was
continuing 1293 1306
discontinuing 29 83
discontinued  405
1322 1794
cost of staff including executive directors during the year amounted to
wages and salaries 48598 59450
social security costs 5223 6392
other pension costs 1207 1972
55028 67814
details of individual directors’ emoluments and pension contributions can be found on pages 19 and 20 
2006 2005
£000 £000
2006 2005
number number
2006 2005
£000 £000
2006 2005
number number
annual report  accounts 2006
87379renewra2006text page 34
87379renewra2006textqxp  81206  1707  page 34 35
87379renewra2006text page 35
a analysis of credit in year
current tax
uk corporation tax on profits of the year  
adjustments in respect of previous periods 74 1
74 1
foreign tax 2 
total current tax 76 1
deferred tax 1425 898
taxation credit on profit on ordinary activities 1349 899
b factors affecting tax credit for the year
profit on ordinary activities before taxation 4639 1175
profit on ordinary activities multiplied by the standard rate
of corporation tax in the uk of 30 2005 30 1392 353
effects of
income not subject to tax 549 6690
expenses not deductible for tax purposes 499 2144
accelerated capital allowances  140
tax deductible expenses charged to reserves 353 
foreign tax 2 
net creation of tax losses 989 4333
adjustments to tax charge in respect of previous periods 74 1
current tax chargecredit for the year 76 1
the group and company have available further unused tax losses to carry forward against future taxable profits
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
c deferred tax
accelerated capital allowances 90 260
tax losses 2989 1734
2899 1474
d reconciliation of deferred tax asset
as at 1 october 1474 576
origination of timing differences 1425 898
at 30 september 2899 1474
2006 2005
£000 £000
2006 2005
£000 £000
2006 2005
£000 £000
2006 2005
£000 £000
notes to the accounts
6 taxation credit on ordinary activities
87379renewra2006textqxp  81206  1707  page 35 notes to the accounts
36
interim related to the year ended 30 september 2006 040 
final related to the year ended 30 september 2005 020 
total dividend paid 060 
interim related to the year ended 30 september 2006 240 
final related to the year ended 30 september 2005 120 
total dividend paid 360 
in accordance with frs 21 dividends are recorded only when paid and are shown as a movement in equity rather than as
a charge in the profit and loss account the directors are proposing that a final dividend of 08p per ordinary share be
paid in respect of the year ended 30 september 2006 this will be accounted for in the 200607 financial year
8 earnings per ordinary share
frs 14 basis
basic earnings per share 5988 59899 1000 2074 59899 346
dilutive effect of share options  254 005   
diluted earnings per share 5988 60153 995 2074 59899 346
effect of discontinued operations
discontinued basic eps  59899  5500 59899 918
9 intangible fixed assets
group
cost
at 1 october 2005 7559
additions 231
at 30 september 2006 7790
amortisation
at 1 october 2005 2957
charge for year 306
at 30 september 2006 3263
net book value
at 30 september 2006 4527
at 30 september 2005 4602
goodwill of £023m was acquired on the acquisition of pps electrical limited further information is given in note 27
7 dividends
2006 2005
weighted weighted
average number average number
earnings of shares eps earnings of shares eps
£000 000 pence £000 000 pence
2006 2005
penceshare penceshare
£000 £000
goodwill
£000
annual report  accounts 2006
87379renewra2006text page 36
87379renewra2006textqxp  81206  1707  page 36 37
87379renewra2006text page 37
notes to the accounts
group
cost or valuation
at 1 october 2005 11682 789 822 4748 18041
additions 123   1168 1291
transfer to current asset investment 11532    11532
disposals    1307 1307
acquisition of subsidiary    120 120
at 30 september 2006 273 789 822 4729 6613
depreciation
at 1 october 2005 974 645 822 670 3111
charge for year 202   1321 1523
transfer to current asset investment 978    978
disposals    915 915
acquisition of subsidiary    53 53
at 30 september 2006 198 645 822 1129 2794
net book value
at 30 september 2006 75 144  3600 3819
at 30 september 2005 10708 144  4078 14930
at cost less depreciation 75   3600 3675
at valuation  144   144
at 30 september 2006 75 144  3600 3819
historical cost of revalued properties
cost  715 781  1496
accumulated depreciation  645 781  1426
at 30 september 2006  70   70
the valuations applied as noted above to the long leasehold land and buildings are based on directors’ valuation
the net book value of assets under finance leases at 30 september 2006 was £1033000 2005 £1747000 during 
the year £410000 2005 £568000 of depreciation was charged against assets held under finance leases
the freehold property at 39 cornhill was transferred to current asset investments following the directors’ decision to sell
the property note 15
freehold long leasehold landfill plant vehicles total
land and buildings land and buildings development  equipment
£000 £000 £000 £000 £000
10 tangible fixed assets
87379renewra2006textqxp  81206  1707  page 37 notes to the accounts
company
cost or valuation
at 1 october 2005 789 362 1151
additions  57 57
disposals  152 152
at 30 september 2006 789 267 1056
depreciation
at 1 october 2005 645 208 853
charge for year  24 24
disposals  30 30
at 30 september 2006 645 202 847
net book value
at 30 september 2006 144 65 209
at 30 september 2005 144 154 298
at cost less depreciation  65 65
at valuation 144  144
at 30 september 2006 144 65 209
historical cost of revalued properties
cost 715  715
accumulated depreciation 645  645
at 30 september 2006 70  70
the valuations applied as noted above to the long leasehold land and buildings are based on directors’ valuation 
the company has no assets held under finance leases or hire purchase agreements
long leasehold plant vehicles total
land and buildings  equipment
£000 £000 £000
38
annual report  accounts 2006
87379renewra2006text page 38
10 tangible fixed assets continued
87379renewra2006textqxp  81206  1707  page 38 39
87379renewra2006text page 39
notes to the accounts
company
shares at cost
at 1 october 2005 and 30 september 2006 152552
provisions
at 1 october 2005 and 30 september 2006 68880
net book value
at 30 september 2006 83672
at 30 september 2005 83672
details of the principal subsidiary undertakings are included in note 30 the investment in subsidiaries is supported by their
net asset values and their discounted expected future cash flows
12 investments in joint venture developments
the investments in joint venture developments consist of
group
at 1 october 2005 4428 438 4866
exchange movements 258 26 284
loan advances  149 149
realisations 1463  1463
at 30 september 2006 2707 561 3268
the group’s share of assets and liabilities in these joint ventures comprises
stocks 2894 5649
debtors 1534 4036
cash 1 19
gross assets 4429 9704
less
creditors 1449 5084
partner loans 273 192
gross liabilities 1722 5276
share of net assets 2707 4428
the group’s share of the assets and liabilities in each joint venture varies stocks includes interest on nongroup specific
project finance of £1475000 2005 £721000 details of the principal joint ventures are shown in note 30
a letter of credit of £1257000 2005 £1335000 remains outstanding at 30 september 2006 this letter of credit was
issued by barclays bank plc to m and t bank formerly known as allfirst bank in the us in respect of the russett center
joint venture which is guaranteed by the company
subsidiary
undertakings
£000
share of loan total
net assets advances
£000 £000 £000
11 investments
2006 2005
£000 £000
87379renewra2006textqxp  81206  1707  page 39 notes to the accounts
group
developments and undeveloped land 18395 9297
raw materials 278 276
18673 9573
14 debtors
due after more than one year
amounts recoverable on contracts 2291 4434  
other debtors 2055 1317  580
4346 5751  580
due within one year
trade debtors 28240 34320 585 673
due from subsidiary undertakings   19113 19792
amounts recoverable on contracts 35891 28448  
other debtors 8335 6538 3401 3548
corporation tax 35 191  
deferred tax note 6 2899 1474  97
prepayments and accrued income 1693 1865 888 841
77093 72836 23987 24951
included within deferred tax is an amount of £1200000 which may not be recoverable within one year
15 current asset investments
at 1 october 2005 6089
transfer from fixed assets 10554
disposals 16643
at 30 september 2006 
the current asset investments comprised properties held for resale the profit on disposal is disclosed in note 3
2006 2005
£000 £000
40
annual report  accounts 2006
87379renewra2006text page 40
13 stocks and work in progress
group company
2006 2005 2006 2005
£000 £000 £000 £000
group and
company
£000
87379renewra2006textqxp  81206  1707  page 40 41
87379renewra2006text page 41
notes to the accounts
cash at bank 19725 13580 13951 15579
cash in hand 10 10  
19735 13590 13951 15579
cash at bank includes £02m 2005 £07m in respect of the net position on a sterling bank deposit of £81m 
2005 £81m and a connected us loan of £83m us 155m translated at the year end rate 2005 £88m used to
hedge us assets within the us subsidiary company and joint ventures
17 creditors amounts falling due within one year
bank loans and overdrafts  secured 10093 3600  
obligations under finance leases 361 692  
payments received on account 11555 14862  
trade creditors 39862 35789 214 156
corporation tax 56 160 3 
other taxation and social security 1806 2158 786 1128
due to subsidiary undertakings   97963 104163
other creditors 5496 9409 4418 6841
accruals and deferred income 52326 48350 2089 1353
121555 115020 105473 113641
included in creditors amounts falling due within one year is £9795000 which relates to a shortterm loan taken out to
fund a development the loan is secured by a first charge on a development property which is included in stock and work
in progress at its cost to date of £11875000 the property on this development is being constructed by the group under
normal contractual terms a binding agreement to sell the building on completion of the construction has been signed with
an independent third party which has lodged an amount of £20m in escrow in accordance with the group’s normal
accounting policies profit is being recognised on the construction element of the contract but profit on the development
aspect of the contract will only be recorded on sale
the restatement to creditors amounts falling due within one year reflects accounting for dividends on a cash basis as
required by frs 21
group restated company restated
2006 2005 2006 2005
£000 £000 £000 £000
group company
2006 2005 2006 2005
£000 £000 £000 £000
16 cash at bank and in hand
87379renewra2006textqxp  81206  1707  page 41 notes to the accounts
secured bank loans and overdrafts falling due
in one year or less  3600  
between one and two years  100  
between two and five years  600  
more than five years  7663  
 11963  
less amount due within one year  3600  
 8363  
the group has undrawn committed facilities of £7000000 2005 £9914000 which will expire within one year
19 other creditors
obligations under finance leases 311 666  
accruals and deferred income 1510 3392  
1821 4058  
obligations under finance leases comprise £280000 2005 £469000 due between one and two years and £31000
2005 £197000 due between two and five years
group company
2006 2005 2006 2005
£000 £000 £000 £000
group company
2006 2005 2006 2005
£000 £000 £000 £000
42
annual report  accounts 2006
87379renewra2006text page 42
18 longterm debt
87379renewra2006textqxp  81206  1707  page 42 43
87379renewra2006text page 43
notes to the accounts
an explanation of the group’s objectives policies and strategies for the role of derivatives and other financial instruments in
managing the risks facing the group can be found within the directors’ report on page 15 the disclosures below do not
include shortterm debtors and creditors as permitted by the exemption allowed in frs 13
interest rate profile of financial assets and liabilities
2006
assets
sterling   24317 24317
dollar   3522 3522
 27839 27839
liabilities
sterling 30 672 9795 10467
dollar   8597 8597
672 18392 19064
2005
assets
sterling   13111 13111
dollar   479 479
 13590 13590
liabilities
sterling 30 1358 11963 13321
dollar  8813 8813
1358 20776 22134
the sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or libor certain
us interest bearing liabilities accrue interest at a rate which is linked to the lender’s us prime rate
the maturity of the financial liabilities is disclosed in notes 17 to 19 the fixed rate liabilities have a weighted average
period of two years 2005 two years
currency exposures
the only exposure of the group to currency risk ie exposure to gains or losses on foreign exchange which would be
recognised in the profit and loss account is in respect of the us dollar bank account which is maintained by the parent
company in the uk and the unhedged portion of an intercompany loan at 30 september 2006 the unhedged portion 
of the intercompany loan was 4905000 2005 4905000 at 30 september 2006 the balance on the us dollar bank
account was 1000 2005 1000
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
hedges
in november 2000 the group undertook a loan hedge of 25million with barclays bank plc against the net assets of 
lovell america inc this was undertaken to minimise the foreign exchange movements of retranslating the net assets 
of lovell america inc at prevailing rates exchange gains of £515000 2005 £179000 were made during the year 
on foreign currency borrowings this has been offset in reserves against exchange losses made on the investment in 
lovell america inc the year end intercompany balance subject to hedging is us15537000 2005 15537000 
the us loan used for this arrangement is scheduled for repayment in november 2008
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
20 derivatives and other financial instruments
fixed rate financial assetsliabilities
weighted average fixed floating 
interest rate rate rate total
 £000 £000 £000
87379renewra2006textqxp  81206  1707  page 43 notes to the accounts
group and company
authorised
100000000 2005 100000000 ordinary shares of 10p each 10000 10000
allotted called up and fully paid
59898927 2005 59898927 ordinary shares of 10p each 5990 5990
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 inland revenue 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 10 years from the date of grant
vesting of options is dependent on the achievement of certain performance criteria which are established by the
remuneration committee at the point of grant in respect of the options granted during the financial year 25 of the
options will vest if the group’s earnings per share for the year ending 30 september 2008 exceeds 8p for 100 vesting
to occur the group’s earnings per share for the year ending 30 september 2008 must be at least 12p any adjustment
relating to deferred taxation which affect the earnings per share calculation may be ignored by the remuneration
committee in determining whether or not performance criteria have been achieved 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 shown in the following table
at 1 october 2005    
granted 762 525  
at 30 september 2006 762 525  
2006 2005
£000 £000
44
annual report  accounts 2006
87379renewra2006text page 44
21 share capital
2006 2005
number exercise price number exercise price
‘000 p ‘000 p
87379renewra2006textqxp  81206  1707  page 44 45
87379renewra2006text page 45
notes to the accounts
group
at 1 october 2005 5893 73 3896 11176
prior year adjustment re frs 21 120
at 1 october 2005 as restated 11056
transfer from profit and loss account for the year 5988
dividends paid 360
exchange differences 119
actuarial loss recognised in pension scheme 6175
movement on deferred tax relating to the pension scheme 1186
at 30 september 2006 5893 73 3896 10536
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 frs 10 the directors are not able to state this figure goodwill
written off against reserves in respect of subsidiaries acquired after 1989 amounts to £nil 2005 nil
company
at 1 october 2005 as previously stated 5893 73 3896 1556
prior year adjustment re frs 21 120
at 1 october 2005 as restated 1676
transfer from profit and loss account for the year 822
dividends paid 360
at 30 september 2006 5893 73 3896 494
share capital profit  loss
premium revaluation redemption account 
£000 £000 £000 £000
22 reserves
share capital profit  loss
premium revaluation redemption account
£000 £000 £000 £000
87379renewra2006textqxp  81206  1707  page 45 notes to the accounts
group
profit for the year 5988 2074
dividends paid 360 
5628 2074
other recognised gains and losses for the year 5108 2393
net movement on shareholders’ funds 520 319
at 1 october 2005 4796 5115
at 30 september 2006 5316 4796
24 capital and leasing commitments
group
annual commitments under noncancellable
operating leases expiring in
under one year 934 79 1013 950
two to five years 725 210 935 273
five or more years 2883 9 2892 2476
4542 298 4840 3699
company
annual commitments under noncancellable
operating leases expiring in
under one year 881  881 861
two to five years 488  488 30
five or more years 2031  2031 2546
3400  3400 3437
the group and company have no capital commitments at 30 september 2006 2005 £nil
2006 2005
£000 £000
land  other total total
buildings 2006 2005
£000 £000 £000 £000
land  other total total
buildings 2006 2005
£000 £000 £000 £000
46
annual report  accounts 2006
87379renewra2006text page 46
23 reconciliation of movements in group shareholders’ funds
87379renewra2006textqxp  81206  1707  page 46 47
87379renewra2006text page 47
notes to the accounts
the company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the normal
course of business
a letter of credit guaranteed by the company has been issued by barclays bank plc to m and t bank see note 12
26 disposal of subsidiary undertaking
on 16 september 2005 the group disposed of bullock construction limited for a cash consideration of £42172000
the net profit on disposal was £22300000 the actual cash received by the group as a result of the disposal was
£21343000 after the repayment of intercompany debts
27 acquisition of subsidiary undertaking
on 2 june 2006 the group acquired the whole of the issued share capital of pps engineering limited “pps” a company
registered in england  wales the acquisition was carried out by a subsidiary company within the group
from the date of acquisition pps has contributed sales of £07m and a profit before taxation of £005m to the
consolidated results
the book value of the assets and liabilities of pps at the date of acquisition were
fixed assets
tangible assets 67
current assets
stocks and work in progress 31
debtors due within one year 581
cash at bank and in hand 65
677
creditors amounts falling due in less than one year 307
net current assets 370
total assets less current liabilities 437
creditors amounts falling due after more than one year
other creditors 4
net assets 433
the consideration paid was £664000 in cash goodwill of £231000 was acquired on acquisition and will be reviewed for
impairment one year after the acquisition as permitted by frs 10
the trading result and cashflows of pps are not considered by the directors to be significant enough to warrant separate
disclosure in accordance with frs 3
25 contingent liabilities
book value
£000
87379renewra2006textqxp  81206  1707  page 47 notes to the accounts
defined benefit scheme
the defined benefit scheme was closed to new members in june 2000 on 1 august 2001 the board decided that no further
benefits would accrue to existing members with more than five years expected service remaining these members were
transferred to the defined contribution scheme but retained the benefits earned to date under the defined benefit scheme
frs 17 “retirement benefits”
the directors have adopted the accounting required by frs 17 with effect from 1 october 2003 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 following disclosures required by frs 17 have been based on the most recent actuarial valuation as 
at 30 september 2006 carried out by barnett waddingham consulting actuaries using the following 
financial assumptions
rate of increase in salaries 400 400 400 425
lpi increases to pensions in payment 250 250 250 250
discount rate 530 520 570 550
inflation assumption 250 250 250 275
increases in deferred pensions 250 250 250 275
the assets in the scheme and the expected rates of return were
equities  795  785 16604 835
gilts  25 fund 56494 695 57212 685  na
bonds 52058 530 51401 520  550
gilts   445  435 84501 485
cash 89 475 79 450 1383 475
total 108641 108534 102488
48
28 pension commitments
as at as at as at as at
30 september 30 september 30 september 30 september
2006 2005 2004 2003
annual report  accounts 2006
87379renewra2006text page 48
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
2006 2005 2004
£000 £000 £000
87379renewra2006textqxp  81206  1707  page 48 49
87379renewra2006text page 49
notes to the accounts
the following amounts at 30 september were measured in accordance with the requirements of frs 17
total market value of assets 108641 108534 102488 109968
present value of scheme liabilities 112596 106906 105840 143128
deficitsurplus in the scheme 3955 1628 3352 33160
deferred tax 1186  1006 9948
net deficitsurplus 2769 1628 2346 23212
balance sheet adjustments to reduce 
surplus to nil at 30 september 2005  1628  
net deficit 2769  2346 23212
all of the movements in the deferred tax amount related to the pension scheme deficit are shown as a movement through
the statement of total recognised gains and losses 
frs 17 was adopted with effect from 1 october 2003 the two columns in the following tables identify the actual amounts
included in the 2006 accounts and the 2005 comparatives
amounts charged to operating profit
current service cost excluding employee contributions 68 98
reduction in deficit as a result of settlements  3650
payments made to pensioners to effect the settlements  1111
68 2441
amount creditedcharged to other financial income
expected return on assets 6452 5431
interest on scheme liabilities 5410 5871
1042 440
amounts recognised in the statement of total recognised gains and losses
actual less expected return on assets 1786 6623
experience lossesgains on liabilities 72 647
effect of change in assumptions on liabilities 5945 6858
actuarial lossgain 7803 412
adjustment for amount charged in previous year 1628 1628
6175 1216
movement in the deficit during the year
deficit brought forward  3353
current service cost excluding employee contributions 68 98
cash contribution excluding employee contributions 1246 1457
settlements  3650
other financial creditscharges 1042 440
actuarial lossgain 7803 412
net deficitsurplus 5583 1628
adjustment for pension asset not recognised in previous year 1628 1628
deficit carried forward 3955 
as at as at as at as at
30 september 30 september 30 september 30 september
2006 2005 2004 2003
£000 £000 £000 £000
at 30 september at 30 september
2006 2005
£000 £000
28 pension commitments continued
87379renewra2006textqxp  81206  1707  page 49 notes to the accounts
difference between the expected and £1786000 £6623000 £426000 £338000 £4532000
actual return on scheme assets
as a percentage of the assets at the end of the year 164 610 042 023 400
experience lossesgains on scheme liabilities £72000 £647000 £1176000 £336000 £427000
as a percentage of the liabilities at the end of the year 000 061 111 023 035
total amount recognised in the statement £7803000 £412000 £11294000 £25340000 £3224000
of total recognised gains and losses
as a percentage of the liabilities at the end of the year 693 039 1070 1770 266
the 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 frs 17 the group has taken advantage of the multiemployer exemption and the
deficitsurplus of the scheme is accounted for as an unallocated consolidation adjustment
money purchase scheme
the assets of the money purchase scheme are held in separate trusteeadministered funds the group made
contributions of £1139000 2005 £1246000 into the money purchase scheme during the year there was also 
£68000 2005 £100000 of accruals relating to the scheme
29 cash flow notes
operating profitloss 3473 20009
amortisation of subsidiary goodwill 306 303
depreciation 1523 2657
profit on sale of fixed assets  78
impairment of fixed assets  450
impairment in current asset investments  1299
increase in stocks and work in progress 9551 932
increasedecrease in operating debtors and prepayments 866 7705
decrease in current asset investments 16643 
decrease in creditors and accruals 1152 12952
net movement on pension deficit included within operating profit note 28 68 3552
cash contribution to defined benefit scheme 1246 1457
profit on sale of shared equity loans  412
realisation of joint venture assets 1463 1640
net cash inflowoutflow from operating activities 10661 25338
2006 2005 2004 2003 2002
2006 2005
£000 £000
50
annual report  accounts 2006
87379renewra2006text page 50
28 pension commitments continued
87379renewra2006textqxp  81206  1707  page 50 51
87379renewra2006text page 51
notes to the accounts
analysis of net funds
cash 13590 5889 256 19735
debt due after one year 8363 8363  
debt due within one year 3600 6279 214 10093
finance leases due after one year 666 355  311
finance leases due within one year 692 331  361
13321 2770 214 10765
net funds 269 8659 42 8970
the noncash movement on cash relates to an unrealised foreign exchange gain on translation of the opening 
us balance sheet
30 principal subsidiary undertakings and joint ventures
the company 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 and joint ventures are shown below 
subsidiary undertakings
yjl ltd owned by renew holdings plc england and wales 100
allenbuild ltd owned by subsidiary england and wales 100
britannia construction ltd owned by subsidiary england and wales 100
walter lilly  co ltd owned by subsidiary england and wales 100
yjl london ltd owned by subsidiary england and wales 100
yjl infrastructure ltd owned by subsidiary england and wales 100
vhe construction plc owned by subsidiary england and wales 100
shepley engineers ltd owned by subsidiary england and wales 100
lovell america inc owned by subsidiary usa 100
joint ventures  interest
russett center limited partnership usa 50
100 investment limited partnership center 9500 usa 67
the joint venture entities are held by lovell america inc
at 1 october noncash at 30 september
2005 cash flow movements 2006
£000 £000 £000 £000
incorporation  proportion of
principal place ordinary shares
of business held by the company
29 cash flow notes continued
87379renewra2006textqxp  81206  1707  page 51 shareholder information
annual general meeting 24 january 2007
results announcement of interim results  may 2007
preliminary announcement of full year results  november 2007
electronic communications
following shareholder approval to amend the company’s articles of association at the agm in march 2006 the company
may deliver shareholder information including annual and interim reports and notices of general meetings in an
electronic format to shareholders
if you would like to receive shareholder information in electronic format please register your request on the company’s
registrars’ electronic database at wwwcapitaregistrarscom you will initially need your unique “investor code” which you
will find at the top of your share certificate there is no charge for this service if you wish to subsequently change your
mind you may do so by contacting the company’s registrars by post or through their website
if you elect to receive shareholder information electronically please note that it is the shareholder’s responsibility to notify
the registrars of any change to their name address email address or other contact details shareholders should also
note that with electronic communications the company’s obligations will be satisfied when it transmits the notification 
of availability of information or such other document as may be involved to the electronic address that it has on file the
company cannot be held responsible for any failure in transmission beyond its control any more than it can for postal
failure in the event of the company becoming aware that an electronic notification is not successfully transmitted a further
two attempts will be made in the event that the transmission is still unsuccessful a hard copy of the notification 
will be mailed to the shareholder in the event that specific software is required to access information placed on the
company’s website it will be available via the website without charge before electing for electronic communications
shareholders should ensure that they have the appropriate equipment and computer capabilities sufficient for the purpose
the company takes all reasonable precautions to ensure no viruses are present in any communication it sends out but
cannot accept responsibility for loss or damage arising from the opening or use of any email or attachments from the
company and recommends that shareholders subject all messages to virus checking procedures prior to use any
electronic communication received by the company that is found to contain any virus will not be accepted
shareholders wishing to receive shareholder information in the conventional printed form will continue to do so and 
need take no further action
should you have any further questions on this please contact the company’s registrars capita registrars 
on 0870 162 3131
52
annual report  accounts 2006
87379renewra2006text page 52
87379renewra2006textqxp  81206  1707  page 52 53
87379renewra2006text page 53
directors  advisors
directors company secretary c wright llb fcis
r harrison nonexecutive chairman 
b may chief executive officer company number 650447
j samuel fca group finance director 
j bishop fca independent nonexecutive registered address 39 cornhill
london
ec3v 3nu
registrars auditors website address wwwrenewholdingscom
capita registrars plc rsm robson rhodes llp
northern house city centre tower
woodsome park birmingham 
fenay bridge b5 4uu
huddersfield
hd8 0la
nominated advisor and broker
brewin dolphin securities ltd
34 lisbon street
leeds
ls1 4lx
87379renewra2006textqxp  81206  1707  page 53 54
annual report  accounts 2006
87379renewra2006text page 54
notice of annual general meeting
notice is hereby given that the fortyseventh annual general meeting of the company will be held at the offices of brewin
dolphin securities limited 12 smithfield street london ec1a 9bd on 24 january 2007 at 1100 am
the meeting will then consider the following business
ordinary business
to consider and if thought fit to pass the following ordinary resolutions
1 to receive and adopt the accounts for the year to 30 september 2006 and the reports of the directors and auditors
thereon
resolution 1
2 to declare a final dividend of 08 pence per share
resolution 2
3 to reelect the following director who retires in accordance with the company’s articles of association
brian may resolution 3
4 to reelect the following director as a director of the company having been appointed since the last agm
john samuel resolution 4
5 to reelect the following director as a director of the company having been appointed since the last agm
john bishop resolution 5
6 to approve the remuneration report for the year ended 30 september 2006
resolution 6
7 to reappoint rsm robson rhodes llp as auditors of the company and to authorise the directors to 
determine their remuneration
resolution 7
special business
to consider and if thought fit to pass resolution 8 which shall be proposed as a special resolution
8 that the power conferred upon the directors by regulation 53 of the company’s articles of association to allot equity
securities as defined in section 942 of the companies act 1985 wholly for cash free from the preemption provisions
in section 89 of the companies act 1985 be renewed for the period ending on the date of the annual general meeting
in 2008 or on 24 april 2008 whichever is the earlier and for such period the “section 89 amount” referred to in
regulation 5 of the company’s articles of association shall be £299495
resolution 8
28 november 2006 by order of the board
registered office c j wright llb fcis
39 cornhill company secretary
london
ec3v 3nu
87379renewra2006textqxp  81206  1707  page 54 55
87379renewra2006text page 55
notice of annual general meeting
notes
1 holders of ordinary shares are entitled to attend and vote at this meeting a shareholder entitled to attend and vote
may appoint a proxy who need not be a shareholder of the company to attend and on a poll to vote instead of him
or her
2 proxy forms and the powers of attorney or other authority if any under which they are signed need to be deposited at
the office of the company’s registrars capita registrars proxy department po box 25 beckenham kent br3 4br
not later than 48 hours before the time of the meeting completion of a form of proxy will not preclude a shareholder
from attending and voting in person at the meeting
3 pursuant to regulation 41 of the uncertificated securities regulations 2001 members will be entitled to attend and vote
at the meeting if they are registered in the company’s register of members 48 hours before the time appointed for the
meeting or any adjournment thereof
4 resolution 8 by resolution 8 your directors are seeking renewal of the power to allot shares for cash for the purposes
of a rights issue or otherwise than in connection with a rights issue limited to the issue of shares up to an aggregate
nominal value of £299495 being 5 of the issued ordinary share capital at the date of this notice if given this power
will expire at the company’s agm in 2008 or on 24 april 2008 whichever is earlier
location of agm
underground
farringdon and barbican are both circle metropolitan 
and hammersmith  city lines chancery lane and 
st paul’s are on the central line
train
the nearest stations are city thameslink and farringdon
bus
services 8 25  521 stop on holborn viaduct
services 8 25 56 242  521 all stop on newgate street
for further information about public transport in london 
visit the transport for london website at wwwtflgovuk 
or phone london travel information on 020 7222 1234
car parking
car parks are located on the map opposite
12 smithfield street london ec1a 9bd
87379renewra2006textqxp  81206  1707  page 55 56
annual report  accounts 2006
87379renewra2006text page 56
group businesses
vhe
phoenix house
hawthorn park
coal road
seacroft
leeds
ls14 1pq
tel 0113 273 9200
shepley engineers
robinson house
westlakes science park
moor row
cumbria 
ca24 3hy
tel 01946 599 022
allenbuild
jubilee house
waterside drive
wigan
wn3 5az
tel 01942 246 265
unecol house
819 london road
north cheam
surrey
sm3 9bn
tel 020 8335 4800
phoenix house
hawthorn park
coal road
seacroft
leeds
ls14 1pq
tel 0113 237 5600
stoneygate road
spondon
derby
de21 7ry
tel 01332 680 400
walter lilly
waddon house
283 stafford road
croydon
surrey
cr0 4nn
tel 020 8730 6200
britannia construction
britannia house
staverton technology park
cheltenham
gloucestershire
gl51 6tq
tel 01452 859 880
yjl london
18 mansell street
london
e1 8aa
tel 020 7977 0050
yjl infrastructure
39 cornhill
london
ec3v 3nu
tel 020 7522 3220
87379renewra2006textqxp  81206  1707  page 56 produced by salient communications tel 01635 861112
annual report  accounts 2006
highlights 01
chairman’s statement 02
chief executive’s review 03
review of operations 05
financial review 13
directors’ report 14
directors’ remuneration report 18
corporate governance 21
statement of directors’ responsibilities 23
independent auditors’ report 24
group profit  loss account 25
group statement of total recognised gains  losses 25
balance sheets 26
group cash flow statement 27
notes to the accounts 28
shareholder information 52
directors  advisors 53
notice of annual general meeting 54
group businesses 56
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delivering specialist
construction services
annual report  accounts   2006
renew holdings plc annual report  accounts 2006
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delivering specialist
construction services
87379renewra2006coverqxp  81206  1938  page 1


Summary:
 annual report  accounts 2006
chairman’s statement
02
87379renewra2006text page 2
introduction
i am pleased to report that the group has
made good progress over the past year all of
the group’s businesses are trading profitably
and are generating corresponding levels of
cash these results do not include any
exceptional items and the board remains
confident that historic contract exposures are
fully provided for – evidence that the group is
in good health
further and stronger focus on particular areas
of specialism where the group has strong
skills and experience continues to enhance
the quality and visibility of earnings flow 
this is highlighted in more detail in the chief
executive’s report that follows the board
remains committed to improving the group’s
health and safety performance and is pleased
to note the progress made during the year 
results and dividend
group turnover from ongoing operations for
the year ended 30 september 2006 was
£3417m 2005 £3301m and profit before
tax was £46m 2005 £12m earnings per
share were 1000p 2005 346p the
group’s net cash balance exclusive of a
specific development loan of £98m at 
30 september was £194m 2005 £136m
net assets have increased to £53m from
£48m after the impact of incorporating a
£28m net pension scheme deficit
the board is declaring a final dividend of 
08p per share which will be paid on 
26 february 2007 to shareholders on the
register as at 26 january 2007 this will 
result in a dividend of 12p per share for the
full year 2005 02p reflecting the group’s
progressive dividend policy and the board’s
confidence in the group’s future performance 
acquisition
during the year the group acquired pps
electrical limited an electrical contractor
specialising in asset support for the nuclear
sector for £664000 in cash pps has been
successfully integrated into shepley engineers
and is trading in line with expectations 
pension scheme
in line with many other uk companies the
directors in calculating the group’s pension
position have adopted mortality tables which
now reflect the expectation of a longer
lifespan for pension fund members as a
result the directors have recognised a
pension deficit of £28m on the group
balance sheet net of deferred tax compared
to a surplus of £16m at 30 september 2005 
board changes
on 1 may 2006 john samuel fca joined the
board as group finance director and philip
underwood stepped down from the board to
concentrate on running vhe construction and
shepley engineers on 1 october 2006 
john bishop fca joined as nonexecutive
director john bishop has extensive
experience in the construction industry and
over 20 years plc experience at main board
level on 31 october 2006 arnold wagner
obe stepped down from the board to
concentrate on his executive responsibilities 
at smiths group plc 
outlook 
the positive actions taken by the new
management team augur well for the future
and the board is confident of making further
progress in both profitability and cash
generation in the new financial year
roy harrison
chairman
28 november 2006 
87379renewra2006textqxp  81206  1706  page 2