delivering specialist 
engineering and 
construction services
annual report  accounts 2009
renew holdings plc annual report  accounts 2009
1coverindd   1 15122009   092021 renew delivers  
specialist engineering  
and construction services 
through its  
branded businesses  
which operate in  
robust and sustainable 
markets
 01 highlights
 02 chairman’s statement
 04 chief executive’s review
	 08	 financial	review
 10 review of operations
 24 corporate social responsibility
 26 directors’ report
 31 directors’ remuneration report
 34 corporate governance
 37  statement of directors’  
responsibilities
 38 independent auditors’ report
 39 group income statement
 39  group statement of recognised 
income and expense
 40 group balance sheet
	 41	 group	cash	flow	statement
 42 notes to the accounts
 66 company balance sheet
 67 notes to the company accounts
 74 shareholder information
 75 notice of annual general meeting
 76  notes to the notice of annual 
general meeting
1coverindd   2 15122009   092023 renew holdings plc annual report  accounts 2009 01
highlights
highlights
financial highlights operational highlights
revenue
£3166m
2008 £3906m
profit before income tax
£55m
2008 £95m
  prior to exceptional items and amortisation charges
full year dividend
30p
2008 30p
net cash balance
£146m
2008 £282m
b  specialist engineering 
now accounts for 36 
of group revenue
b  group’s order book at 
30 september 2009 stood 
at £202m
b  80 of group’s order book 
is repeat business
b  70 of specialist engineering 
forward orders are in 
regulated markets
1rnwhar09frontindd   1 15122009   092056 02
chairman’s statement
roy harrison obe
chairman
 “  t h e  c o n t i n u i n g  d i f fi c u l t
market presents challenges 
however our debt free 
balance sheet with available 
cash resources puts renew 
in a position of strength”
introduction
against the background of the 
current economic climate i am pleased 
to report satisfactory results for the year 
in these challenging trading 
conditions the group’s established 
strategy of shifting the balance of 
revenues from specialist building 
to specialist engineering which now 
accounts for 36 compared with 15 
three years ago is justified as both 
revenues and profits from specialist 
engineering have increased the impact 
of the recession has been keenly felt 
in specialist building but the cost 
reduction measures which we have 
implemented throughout the year 
leaves that part of the group’s business 
well placed to negotiate these difficult 
market conditions successfully 
results
group revenue for the year ended 
30 september 2009 was £3166m 
2008 £3906m profit before income tax 
for the year prior to exceptional items 
and amortisation charges was £55m 
2008 £95m profit after tax exceptional 
items and amortisation charges 
was £04m 2008 £53m
the group remains debt free and at 
30 september 2009 the group’s net 
cash position stood at £146m 2008 
£282m the board expects a similar 
level of net cash at 30 september 2010
specialist engineering revenues grew 
by 14 to £1148m 2008 £1008m 
and operating profit prior to exceptional 
items and amortisation charges increased 
by 16 to £40m 2008 £35m 
1rnwhar09frontindd   2 15122009   092100 renew holdings plc annual report  accounts 2009 03
chairman’s statement
the specialist markets in which we 
operate are in sectors which have 
strong regulatory drivers this provides 
greater visibility of workflow and 
stability of earnings 
in specialist building the past year has 
seen worsening conditions resulting in 
revenues reducing to £2024m 2008 
£2870m these reductions have been 
principally experienced in the retail and 
non‑specialist sectors which accounted 
for 27 of specialist building revenue 
in 2009 compared to 46 in 2008 
nevertheless specialist building 
delivered operating profits prior to 
exceptional items and amortisation 
charges of £25m 2008 £49m
the group has incurred £44m of 
exceptional costs including £26m 
of restructuring and redundancy costs 
the decisive action taken resulted in 
reduced capacity of 35 in specialist 
building which realigns the business 
appropriately for market conditions 
these actions have produced annual 
cost savings in excess of £12m
the group’s order book at 
30 september 2009 stood at 
£202m 2008 £219m with a 67 
increase in specialist engineering 
to £82m 2008 £49m over 80 
is in the form of repeat business 
for both specialist building and 
specialist engineering sectors 
within specialist engineering 70 
is in resilient markets with regulated 
spending plans our emphasis 
will remain on project selectivity 
to reduce contract risk and to 
maintain quality of earnings 
office of fair trading investigation 
renew has received the decision 
from the office of fair trading “oft” 
following its investigation into tender 
activities within the construction sector 
this decision was that a fine of £05m 
will be levied on allenbuild limited 
“allenbuild” one of its subsidiaries 
and that a fine of £30m will be levied on 
bullock construction limited “bullock” 
bullock is a former subsidiary of renew 
which was sold in september 2005 to 
a company controlled by bullock’s 
management the oft holds that 
renew is jointly and severally liable for 
these fines having taken legal advice 
renew has appealed against the oft 
decision and the board believes that 
renew will have no liability in respect 
of the bullock fine accordingly in these 
results the group has provided a sum 
of £05m as an exceptional charge in 
respect of the allenbuild fine 
dividend
the board is proposing to maintain 
the final dividend at 20p per share 
this will provide an annual dividend 
of 30p 2008 30p the dividend 
will be paid on 25 february 2010 to 
shareholders on the register as at 
29 january 2010 and in accordance 
with accounting standards will be 
accounted for in the 2010 financial 
year the shares will become 
ex‑dividend on 27 january 2010
growth strategy
our strategy addresses current 
market conditions and focuses on 
two distinct business streams specialist 
engineering and specialist building 
our aim is to increase revenue in 
specialist engineering both organically 
and by acquisition whilst maintaining 
operating margins in the target range 
of 3 to 4 during the year we have 
added to the breadth of our offering in 
both the water and nuclear industries 
with the acquisitions of ca pumps 
limited and mothersill engineering 
in specialist building we aim to 
selectively access opportunities 
maintaining profitability of at least 1 
at the operating level with a longer term 
target of 2 as markets improve
our medium term objective is to 
develop a specialist engineering 
and construction services group 
with overall operating profits of over 
2 and with specialist engineering 
providing 50 of revenue
outlook
the continuing difficult market 
presents challenges however our 
debt free balance sheet with available 
cash resources puts renew in a position 
of strength the group benefits from a 
highly experienced management team 
led by brian may chief executive and i 
am confident that the group will deliver 
a resilient performance and trade 
profitably through the recession
roy harrison obe 
chairman
24 november 2009
09
1148
08
1008
07
688
06
546
specialist engineering
revenue
09
36
08
26
07
20
06
15
specialist engineering
 of group revenue

y ear
£m
y ear
1rnwhar09frontindd   3 15122009   092100 04
chief executive’s review
brian may
chief executive
“ the group continues to 
make progress in realising 
its objective of shifting 
the balance of its revenues 
progressively into 
specialist engineering”
overview
our strategy of expanding specialist 
engineering activities whilst concentrating 
on secure margin delivery in specialist 
building is well established
in specialist engineering revenue 
has increased by 14 and now 
accounts for 36 of group revenue 
with margins remaining within our 
target  range at 35 our specialist 
engineering markets are resilient and 
have strong regulatory drivers this is 
evidenced by the encouraging 67 
increase in forward work to £82m 
2008 £49m of which 97 is in 
the form of repeat business
in specialist building as anticipated 
revenues reduced by 29 27 being 
in retail and non specialist sectors 
despite this specialist building remained 
profitable with a 12 return prior to 
exceptional items the decisive action 
taken to reduce capacity has resulted 
in a specialist building business which is 
now appropriately sized with a competitive 
cost base to meet the market conditions 
anticipated over the coming years
we have continued to look for 
complementary acquisitions to develop 
our specialist engineering business 
whilst acquisitions that meet our 
demanding criteria have been difficult 
to identify we were delighted to announce 
two acquisitions during the year in 
october 2008 seymour’s capability in 
the water industry was further enhanced 
with the acquisition of ca pumps ltd 
ca is based in county durham 
and operates nationally providing 
1rnwhar09frontindd   4 15122009   092103 renew holdings plc annual report  accounts 2009 05
chief executive’s review
mechanical and electrical design 
installation and maintenance services
in may we acquired mothersill 
engineering a specialist machining 
and fabrication business which 
enhances our offering to the nuclear 
industry mothersill has worked with our 
nuclear business shepley for many 
years and provides support to nuclear 
new build projects decommissioning 
and production operations 
review of operations
specialist engineering
nuclear
shepley engineers continues to be 
active in five nuclear facilities sellafield 
drigg springfields capenhurst and 
chapelcross at sellafield where shepley 
has worked for 54 years the company 
remains the largest mechanical and 
electrical contractor on site shepley 
operates in the fields of both asset 
support and decommissioning 
underpinned by four frameworks with 
sellafield ltd all of which have been 
extended during the year the multi 
discipline site wide framework 
continues to provide significant volume 
the spend by the nuclear 
decommissioning authority is 
planned to be £84bn over the next 
three years with 59 allocated to the 
facilities in which shepley is active 
this is providing additional opportunities 
outside the frameworks and during the 
year shepley has received initial orders 
on the £80m separation area ventilation 
project and the £200m b30 project 
the most hazardous industrial complex 
in western europe further work on 
these projects is anticipated
in addition shepley was recently 
awarded the £43m project to reclad 
unit 560 direct for sellafield ltd it is 
also part of the major group which 
includes jacobs and doosan babcock 
bidding for the high active liquid 
effluent facility the largest single 
contract to be let by sellafield with 
a value in excess of £500m
water
seymour acquired by the group in 
2007 specialises in water infrastructure 
development flood alleviation and sea 
defences seymour’s revenues have 
increased by 50 since acquisition
seymour’s largest client is northumbrian 
water for whom it carries out work on 
four frameworks flood alleviation and 
combined sewer overflows continue to 
feature strongly with £15m of orders 
received in the year northumbrian 
water is the 8th largest water company 
measured by investment spend and the 
frameworks are due for renewal in 2011 
seymour has commenced work to 
maximise its future position on the 
amp5 frameworks
during the year ca has been awarded 
an me framework by scottish water 
the first for this client similarly allenbuild 
has recently been appointed to our first 
framework with severn trent which is 
expected to provide £20m of projects 
per annum for its framework partners
ofwat recently published its draft 
proposals for a £21bn investment 
programme over the next five years 
this is an increase over the last five 
year period with a greater spend 
anticipated on flood alleviation
land remediation
the repositioning of the vhe business 
last year into regional civil engineering 
due to the reduced remediation market 
has proved effective this is demonstrated 
by the award of the £15m cudworth 
bypass contract which is the fifth 
contract for barnsley mbc
remediation continues to provide 
opportunities for vhe and during the 
year we were awarded a £58m project 
to remediate the site of the commonwealth 
games athletes village in glasgow 
one of the largest remediation projects 
in scotland in addition vhe has been 
appointed preferred bidder to develop 
a remediation strategy on a redundant 
gasworks in jersey work also continues 
to be awarded under our national 
grid framework with discussions 
ongoing to secure a two year extension
vhe is the uk’s leading specialist 
contractor undertaking remediation 
works under part iia of the environmental 
protection act 1990 and recently has 
secured two further awards including 
a £15m scheme in cardiff this act 
sets out the regulatory framework 
for local authorities to deal with the 
estimated 200000 hectares of land 
contaminated during previous use
vhe continues to improve its 
remediation skills and is investigating 
different remediation technologies to 
respond to environmental and energy 
saving concerns vhe is developing 
an expertise in solidification and 
stabilisation with a european partner 
vhe remains well placed to provide its 
specialist skills as opportunities arise
1rnwhar09frontindd   5 15122009   092107 06
rail
our rail business yjl infrastructure 
has seen substantial growth in the year 
and has now widened its customer 
base working for eight client bodies 
over the last two years
the principal market is within london 
and the home counties where there 
are approximately 700 stations and 
30 depots £40bn has been committed 
to transport for london to upgrade 
london’s transport system over the 
next ten years with network rail also 
having a £35bn development plan 
running to 2014 yjl infrastructure 
as an accredited rail contractor 
is active in both these sectors
in october 2008 yjl infrastructure 
was appointed to the vendor capital 
programme framework with london 
underground which will provide ongoing 
opportunities over the next four years 
during the last year major awards have 
been the modernisation of marble arch 
and notting hill gate stations valued 
at £15m each station fit outs for south 
eastern on ctrl and two projects for 
network rail at waterloo including the 
complex and time sensitive peak hour 
subway an award has also been received 
for an intrusive survey project for crossrail
specialist building
social housing
allenbuild has now established itself 
as one of the leading new build social 
housing contractors in the south east 
having doubled revenues over the last 
three years it continues to receive 
awards recognising its reputation for 
quality delivery innovation and value 
engineering and is at the forefront 
of developments on environmental 
sustainability and energy saving issues
the social housing market has well 
established spending plans allenbuild 
has a position on ten frameworks 
an increase of two in the year these 
underpin the business providing access 
to an annual £650m market allenbuild 
has relationships with six of the top twelve 
housing associations as listed in the 
recent homes  communities agency 
grant allocation awards
66 of projected revenues in this 
sector are secured for the coming 
year with the balance identified and 
in final negotiation in addition there 
is over £100m of future opportunities 
in discussion
restoration and refurbishment
this specialist sector has remained 
strong particularly for walter lilly 
which remains a preferred contractor 
for consultants in high quality residential 
refurbishment walter lilly has particular 
skills in providing innovative solutions 
to the temporary works challenges 
in extending properties underground 
which is a major requirement for most 
residential projects in london this skill 
has been demonstrated in the successful 
completion of the 11m deep basement 
to form a stacking car park at their 
£36m project in grosvenor crescent
during the year good progress was 
made on the extensive refurbishment of 
a large grade ii listed private residence 
in regents park and walter lilly was 
also awarded the £35m contract to 
chief executive’s review continued
1rnwhar09frontindd   6 15122009   092107 renew holdings plc annual report  accounts 2009 07
carry out restoration and refurbishment 
works to a prestigious grade ii listed 
property in park lane
walter lilly was proud to be awarded the 
project to construct the 7th july memorial 
in hyde park the memorial which was 
officially opened by hrh prince of wales 
contains 52 stelae one for each of those 
who lost their lives in the central london 
bombings in july 2005
the group has worked on a variety of 
projects at the palace of westminster 
for over twelve years and was delighted 
to be awarded the first phase of the cast 
iron roof restoration valued at £7m 
science and education
substantial government funding 
remains committed to improving 
the country’s science and education 
facilities we continue to secure projects 
both individually and through our eight 
national frameworks in this sector 
we have continued our long association 
with defra with a further £7m award and 
have recently been awarded our 63rd 
project in a 17 year relationship with 
glaxosmithkline in addition we have 
received a further award on our imperial 
college framework
following confirmation of learning 
and skills council funding for the 
kirklees college waterfront campus 
we are now finalising contractual 
arrangements on this £46m project 
and have commenced works on site 
under an enabling contract
people
keeping our employees and those 
who work with us operating safely is 
of paramount importance to the group 
i am pleased that 2009 has seen us 
again beat our yearly safety target with 
a reduction of 17 in the accident 
incidence rate over the year which is 
a 64 reduction over the last four years 
the achievements of the group during 
these challenging times are a testament 
to the skills hard work and commitment 
of all our employees for which the board 
is very grateful
summary
the group continues to make progress 
in realising its objective of shifting the 
balance of its revenues progressively 
into specialist engineering
in specialist engineering we are 
active in markets that are substantially 
underpinned by regulatory spending 
whilst in specialist building we are 
focusing our capacity on more resilient 
specialist sectors
the group is now appropriately 
structured to meet the challenges 
of the years ahead the board has 
set a target for 2012 of developing a 
specialist engineering and construction 
services group with an operating profit 
margin of over 2 and with specialist 
engineering providing at least 50 
of revenue
brian may
chief executive
24 november 2009
chief executive’s review
1rnwhar09frontindd   7 15122009   092109 08
financial review
results
group revenue from ongoing 
operations was £3166m 2008 
£3906m with a profit before tax 
of £55m 2008 £95m prior to 
exceptional items and amortisation 
charges a tax charge of £18m 2008 
£22m resulted in a profit after tax for 
the year of £37m 2008 £73m prior 
to exceptional items and amortisation 
charges after exceptional items and 
amortisation the profit for the year 
was £04m 2008 £53m
cash 
the year has featured a number 
of non‑recurring or exceptional cash 
outflows which have contributed to 
a reduction in our net cash balances 
which stood at £146m 2008 £282m 
at the year end the group’s only 
borrowings are £27k of finance 
leases and £263k of overdraft funding 
the nonrecurring outflows include 
the settlement of the bbea pension 
scheme debt at £33m including legal 
costs and £23m for the acquisitions 
of ca pumps limited and mothersill 
engineering further during the year 
the group paid out £34m in restructuring 
and redundancy costs provided in both 
this financial year and the previous one 
as a result of the reduction in revenues 
in specialist building the amounts 
received in advance from construction 
contract customers have also reduced 
from £151m to £85m
treasury
whilst the group seeks to maximise the 
short term interest returns on its cash 
we have been mindful of the risk profiles 
of deposit takers and our policy remains 
to deposit funds only with aa rated 
institutions the board approves the list 
£109m
distributable profits supporting 
dividend payment
£146m
net cash balance in debt free 
balance sheet
financialreview 
1rnwhar09frontindd   8 15122009   092109 renew holdings plc annual report  accounts 2009 09
fin ancial  review
of institutions with which deposits 
are made on a regular basis and applies 
its own experience and judgement as 
to which institutions to use over and 
above the credit rating clearly in 
today’s environment of low interest 
rates returns on cash held are modest 
property and lovell america inc
the group has not realised any 
material uk property assets during 
the year as a result of the prevailing 
market conditions none of the land 
assets in the usa have been ready 
for realisation during the financial 
year as local management progress 
improvements to planning and zoning 
consents this situation is expected 
to continue through the next financial 
year as well
pensions
the gross deficit in the lovell pension 
scheme which was closed to new 
members in 2000 has increased 
to £24m 2008 £15m as discount 
rates have declined the board has 
incorporated specific mortality 
assumptions based upon a postal 
code analysis of the membership 
in accordance with the scheme specific 
funding requirements of the pensions 
act 2005 the board has an agreement 
with the trustees of the scheme on the 
level of future contributions which are 
currently £20m per annum inclusive 
of costs 
provisions
provisions have reduced to £18m from 
£50m primarily due to the settlement 
of the bbea pension scheme debt but 
also as the group has taken advantage 
of market conditions to terminate 
certain disadvantageous leasehold 
arrangements in respect of properties 
which were not being used by the group 
a provision of £05m has been made 
in respect of the oft fine further details 
of which are given in note 24 to the 
financial statements
taxation
a deferred tax asset included in 
non‑current assets of £41m 2008 
£41m is carried in the balance sheet 
which principally results from the likely 
future utilisation of tax losses through 
the improved and profitable trading 
of the group the asset attributable 
to these losses has reduced by £06m 
the deferred tax asset related to the 
defined benefit pension scheme has 
increased by £02m as a result of the 
increase in the gross scheme liability 
the payable current year uk tax 
charge is £nil however there is a small 
prior year adjustment leading to a 
charge of £32k the rest of the tax 
charge of £08m relates to deferred 
tax with the majority £06m attributable 
to the defined benefit pension scheme 
this represents an effective group tax 
rate of 68 although the corporation 
tax element is less than 3
the group has material tax losses to 
carry forward and the corporation tax 
payable in each of the next few years is 
expected to remain below the headline 
rate of tax
net assets
the consolidated net assets of the 
group were £113m 2008 £143m
the reduction comprises £21m related 
to the defined benefit pension scheme 
£14m due to the dividend being in 
excess of retained profit for the year 
and £01m related to share options with 
a £06m credit due to foreign exchange 
gains which are not recorded through 
the income statement
the distributable profits of renew 
holdings plc stood at £109m 2008 
£55m providing the board with the 
support to recommend an unchanged 
dividend for the full year of 30p per 
share the net assets of the holding 
company which do not include the 
defined benefit pension scheme liability 
increased to £270m from £216m
john samuel
group finance director
24 november 2009
09
30
08
30
07
18
06
12
annual dividend
pence
y ear
1rnwhar09frontindd   9 15122009   092109 10
specialist engineering
review of operations
specialist engineering within 
the nuclear sector is delivered 
through shepley engineers a major 
mechanical and electrical contractor 
and its subsidiary businesses west 
cumberland engineering pps electrical 
and mothersill which collectively 
employ over four hundred people
in may shepley completed 
the complementary acquisition 
of mothersill engineering which 
further enhances the service offered 
in the nuclear sector mothersill 
delivers precision machined parts 
to support both new construction 
and decommissioning programmes 
activity in the year has remained 
focused at sellafield which continues 
to command a large proportion of 
available funding within the national 
civil nuclear legacy programme 
shepley remains the largest tier 2 
mechanical and electrical contractor 
and has worked on site at sellafield 
for 54 years
shepley’s work is derived largely 
from four framework agreements 
all of which were extended during 
the year the largest framework is the 
multi discipline site wide agreement 
at sellafield which was extended for 
a third year and resulted in over 480 
contract tasks ranging in size from 
£500 to £1m and providing asset care 
maintenance and support across a 
range of complex operational plant 
within controlled areas 
one of the most challenging projects 
in the year was successfully completed 
when an essential component was 
replaced within one of the vitrification 
facilities the solution included the 
deployment of remote handling 
equipment to decontaminate remove 
and replace an essential aspect of the 
plant’s operational hardware shepley 
provided the planning and methodology 
development which included the use of 
digital modelling the £33m task was 
delivered safely within budget and 
on programme
other notable projects undertaken 
at sellafield during the year included 
improvement and refurbishment within 
the high level waste plants which 
required some challenging engineering 
solutions a collaboration project with 
our land remediation specialist vhe 
was completed at capenhurst where 
operations were focused on their 
redundant process facilities
during the year shepley completed 
a range of operations at springfield 
fuels ranging from the removal size 
reduction and disposal of numerous 
redundant assets to the clean‑up and 
decontamination of waste receptacles 
further decommissioning work was 
completed at capenhurst in total 
shepley has been operationally 
engaged at five nuclear sites around 
the uk
in the year both shepley and 
pps electrical achieved one million 
man hours of working without a single 
riddor lost time accident shepley’s 
commitment to safety was further 
recognised during 2009 when they 
were awarded an additional president’s 
award from the ‘royal society for the 
prevention of accidents’ “rospa” 
5
uk nuclear licensed sites have 
seen projects successfully 
delivered by shepley engineers
2m
man hours completed without a 
single riddor lost time accident 
in highly controlled environments
nuclear 
1rnwhar09frontindd   10 15122009   092113 renew holdings plc annual report  accounts 2009 11
specialist engineering
the delivery of a nuclear materials 
flask lid tipping frame for sellafield 
required the collaboration of shepley 
and its subsidiary businesses 
west cumberland engineering 
completed the fabrication and 
assembly of machined parts supplied 
by mothersill with electrical and 
instrumentation work completed 
by pps
the tipping frame is designed to 
manipulate flask lids during inspection 
and cleaning operations 
nuclear 
nuclear flask lid tipping frame for sellafield £33m
1rnwhar09frontindd   11 15122009   092117 12
review of operations continued
specialist engineering
seymour is a leading civil 
engineering business and together 
with its subsidiary ca which was 
acquired in october 2008 forms 
our specialist water business both 
businesses are based in the north east 
of england and operate nationally in 
both the public and private sectors 
seymour has extensive expertise 
in water infrastructure development 
and maintenance flood alleviation 
sea defences land reclamation 
and other infrastructure services 
the acquisition of ca which specialises 
in mechanical and electrical installations 
and maintenance pump sales and 
service steel fabrications and health 
and safety training for a wide range 
of industries enhances our capabilities 
in the water sector 
a large portion of work in this sector 
continues to be procured under longer 
term framework agreements which 
included £15m of work completed in the 
year for northumbrian water on their 
flooding and combined sewer overflow 
“cso” contracts recently ca has 
been awarded framework status by 
scottish water for the provision of 
mechanical and electrical services 
and has secured a framework with  
national grid 
of the work completed under the 
various frameworks seymour has 
installed their largest flood storage tank 
to date for northumbrian water in south 
shields the tank measures 25 metres 
in diameter and 11 metres deep and is 
designed to hold around 4800 cubic 
metres of stormwater in the event of 
localised flooding the scheme which 
was runner up for civil engineering 
contractors association project of the 
year award is one of many designed 
to protect people and the environment 
from the effects of heavy storms 
in addition to flood storage a number 
of combined sewer overflow projects 
were undertaken in the year these csos 
allow the safe discharge of a combination 
of stormwater and domestic sewage 
waste water caused by sewers exceeding 
capacity during heavy storms 
together ca and seymour completed 
cso projects at lustrum beck tyne bank 
guisborough berwickshire barton and 
sedgefield these cso contracts the 
largest at t yne bank worth £21m involved 
restoring or installing new pipelines 
outside of flood alleviation a successful 
sea defence project was completed 
for northumberland county council 
in addition to refurbishments of the 
pier at hartlepool and the breakwater 
at berwick ca completed the 
refurbishment of zetlands large 
sewerage pumping station for 
northumbrian water this £900k project 
which lasted ten months is one of the 
largest projects undertaken by ca
the businesses play a leading role 
in the region working on environmental 
contracts for both the local authority 
and private sector a large proportion 
of these are repeat business with high 
profile clients such as the national trust 
northumbrian water hartlepool 
borough council stockton borough 
council cleveland potash and 
bertschi transport 
allenbuild has secured a place on 
the severn trent water £70m property 
framework alongside two other 
contractors the major projects 
framework will run for three years and 
covers building projects to modernise 
the severn trent estate within a 
geographical area from the humber 
estuary to the bristol channel and 
from mid wales to the east midlands
£15m 
of work completed in the year 
for northumbrian water on their 
flood alleviation and cso contracts
water 
“ ca has 
been awarded 
framework 
status by 
scottish water 
for the provision 
of mechanical 
and electrical 
services”
1rnwhar09frontindd   12 15122009   092120 renew holdings plc annual report  accounts 2009 13
specialist engineering
the 36 week project at newland court 
in south shields for northumbrian 
water was to construct a 25 metre 
diameter storage tank which will 
provide approximately 4800 cubic 
metres of storage for stormwater 
the tank is designed to allow a 
reverse flow of water from the 
main sewer to be stored safely 
until it is able to flow back into 
the main sewer system 
this important scheme will 
alleviate flooding for approximately 
20 local properties 
water
newland court for northumbrian water £24m
1rnwhar09frontindd   13 15122009   092125 14
specialist engineering
review of operations continued
vhe is a major provider of land 
remediation services throughout the 
uk with a client base including local 
authorities and councils regional 
development agencies privatised 
utility companies property and 
housing developers
vhe has been actively engaged 
in brownfield development and 
contaminated land management since 
1979 and has successfully completed 
over 500 remediation projects including 
240 sites previously associated with 
the historic manufacture of town gas 
making vhe the most experienced 
gasworks remediation contractor 
in the uk
in‑house capabilities include soil 
washing biophysical treatment 
solidification and stabilisation vhe’s 
earthworks and civil engineering 
background and skills add value to 
many projects where materials arising 
from the remedial strategy are processed 
into high value pavement and drainage 
materials vhe’s on site validation 
technology includes x‑ ray and ultraviolet 
fluorescence which reduces the need 
for soil samples to be sent for analysis 
vhe has continued to deliver both 
voluntary and part iia determined 
remediation projects involving the 
removal of contaminated soils from 
both the front and rear of domestic 
properties vhe has developed 
bespoke skills in managing these 
sensitive projects which often involve 
excavation to the doorstep of occupied 
dwellings during 2009 vhe completed 
projects ranging from a £21m contract 
in renfrew with 26 properties to single 
dwelling clean ups for the national grid 
at thetford in norfolk and kibworth near 
leicester in addition recent project 
awards by the nhbc in salisbury and 
cardiff city council for similar schemes 
will see vhe continue these works 
into 2010
vhe’s £15m cudworth and west 
green bypass project for barnsley 
mbc commenced in november 2008 
the project involves the construction 
of a 52km single carriageway road 
including five roundabouts three 
underpasses and both rail and road 
bridges vhe is the main contractor 
responsible for major drainage works 
structures and surfacing on site in 
addition to the bypass environmental 
considerations on the project included 
acid tolerant grass cultivated over 
years during which a local bleach works 
dried materials in surrounding fields 
the grass has been preserved requiring 
careful removal and restoring to protect 
plants and wildlife which have made this 
unusual environment their home
vhe has been awarded a £57m 
contract by glasgow city council 
to carry out initial remediation works 
preparing land ahead of the construction 
for the 2014 commonwealth games 
the works involve site clearance with 
a large portion being treated by soil 
washing allowing processed materials 
to be reused on site 
vhe undertakes remediation work 
for national grid property on sites 
across the uk under a three year 
framework agreement and is a panel 
contractor on the remade programme 
reclamation and management of derelict 
land which has been established by 
lancashire county council in partnership 
with the north west development agency
0
reportable accidents or 
environmental incidents 
in the past twelve months
240
projects successfully completed 
on former gasworks sites making 
vhe the uk’s most experienced 
gasworks remediation contractor
land remediation 
1rnwhar09frontindd   14 15122009   092127 renew holdings plc annual report  accounts 2009 15
specialist engineering
vhe’s largest domestic contract 
at royal inch crescent involved 
the remediation of 26 properties 
built during the 1970s some 
properties were built above buried 
storage tanks and investigations 
revealed the presence of contamination 
associated with the former gasworks 
the £21m contract as part of £32m 
of works funded by the scottish 
government included the demolition 
of property excavation and disposal 
of contaminated materials from depths 
up to 45 metres temporary support 
works groundwater monitoring and 
the reinstatement of turf paving 
and fencing 
the scheme required vhe to work 
around people’s homes while they 
remained occupied necessitating 
close liaison with residents in order 
to minimise disruption vhe carried 
out extensive monitoring of vibration 
dust noise vapours and odours to 
ensure the controls did not compromise 
the comfort and safety of the residents
land remediation 
royal inch crescent for renfrewshire council £21m
1rnwhar09frontindd   15 15122009   092129 16
 
specialist engineering
review of operations continued
based in london yjl infrastructure 
delivers rail infrastructure for clients 
such as network rail london 
underground and southeastern 
with experience going back 25 years 
yjl infrastructure has carried out works 
at over 600 railway stations and 40 train 
maintenance depots within london and 
the south east as principal contractor 
for both refurbishment and new build 
work the focus is mainly on stations 
and depots with sites both below and 
above ground
during the year yjl infrastructure 
completed a number of station 
modernisation schemes one such 
scheme was network rail’s waterloo 
peak hour subway which involved 
the remodelling of infrastructure at 
the station to allow automatic ticket 
barriers to be installed in passageways 
the ticket barriers link the national rail 
platforms to the underground system 
from a standing start in september 2008 
continuous 24 hour working was 
required to meet the requirement for 
new gate lines to be fully operational 
by 1 january 2009 this project has 
been nominated and short listed for 
the national rail awards ‘project of 
the year’
another station modernisation 
scheme completed was the fit out 
of station boxes at st pancras 
stratford and ebbsfleet stations for 
southeastern enabling them to meet 
operational requirements of a high 
speed train service 
yjl infrastructure’s relationship 
with london underground continues 
with the award of further station 
modernisation schemes at marble arch 
and notting hill gate with a combined 
value of £30m works on these stations 
are well underway and will be completed 
by early 2011 
during the year yjl infrastructure 
has been awarded a £25m package 
by crossrail for intrusive survey works 
at eight london underground stations 
to facilitate the development of designs 
for crossrail 
with the intent of widening its service 
to customers yjl infrastructure 
works closely with other renew 
group companies to provide 
national coverage 
rail 
640
railway station and train 
maintenance depot projects 
completed by yjl infrastructure 
to date
“ the waterloo 
peak hour 
subway project 
has been 
short listed for 
the national 
rail awards 
project of 
the year”
1rnwhar09frontindd   16 15122009   092130 renew holdings plc annual report  accounts 2009 17
specialist engineering
the infrastructure remodelling of 
the peak hour subway station for 
network rail enabled ticket gates to 
be installed in passageways linking 
the national rail platforms to the 
underground system 
continuous 24 hour working was 
required to meet the requirement for 
new gate lines to be fully operational 
by 1 january 2009 
this project which was a complex 
civil engineering undertaking combined 
with tight time scales and difficult 
working conditions has been 
nominated and short listed for the 
national rail awards ‘project of 
the year’
rail 
waterloo peak hour subway for network rail £75m
1rnwhar09frontindd   17 15122009   092132 18
specialist building
review of operations continued
social housing 
our specialist new build social housing 
capability is predominantly delivered 
by allenbuild traditional design and 
build and partnering on new build 
and refurbishment projects in the 
public sector form a large portion 
of work undertaken 
during the last year allenbuild has 
increased the number of major housing 
association frameworks to ten which 
include hexagon and sanctuary housing 
associations notting hill housing trust 
and network housing group 
allenbuild is currently involved on a 
number of major projects the largest 
of which is an £185m contract at 
fairfield road london for the genesis 
housing group as part of the framework 
contract the project is to deliver a total 
of 146 flats and one commercial unit 
external works include the provision 
of roads and associated landscaping 
also for the genesis housing group 
is an £11m project to construct three 
five and sixstorey buildings comprising 
a total of 74 accommodation units 
located in pier road london due for 
completion in january 2010 the site 
is located close to the proposed new 
‘cross rail’ line which has presented 
challenges particularly with the design 
of the foundations
another major scheme completed 
during the year was the £96m project for 
logic homes at harrow road in london 
the project was awarded a ‘performance 
beyond compliance’ certificate by the 
considerate constructors’ scheme 
and comprised a six‑storey block of 
47 flats a double basement car park 
with space for 40 cars 
a significant quantity of site waste 
on the harrow road project was 
excavated and uniquely transported to 
a local recycling facility via the adjacent 
grand union canal use of the canal 
during this project substantially reduced 
road bound transport the mayor’s 
office and transport for london propose 
to use this project as a pilot scheme to 
promote greater use of the waterway
further contract awards during 
the year include a £93m project at 
edgware of 53 social housing units 
plus commercial for genesis new 
client awards of £14m for a housing 
development at kenworthy road 
east london and a £125m scheme 
to provide 75 housing units for 
hexagon housing association 
were also received
the recently completed scheme in 
clyde vale lewisham an £85m project 
for london and quadrant housing 
trust won the sought after ‘building 
for life’ gold standard award from 
the commissioners for architecture 
and the built environment
as a community contractor allenbuild 
is committed to adding value to its 
clients and local communities by 
establishing and providing employment 
and trade skills training opportunities 
for local tenants young people and 
subcontractors allenbuild works 
closely with the construction training 
initiative team and other trade skills and 
employment training partners to establish 
lasting employment commercial and 
personal development opportunities in 
local communities and businesses
10
allenbuild has increased its major 
housing association frameworks 
to ten during the year
£44m
social housing orders booked 
in 2009
1rnwhar09frontindd   18 15122009   092133 renew holdings plc annual report  accounts 2009 19
specialist building
in hackney allenbuild has delivered 
a £155m project for the design and 
build of a sevenstorey 106 unit 
development for the metropolitan 
housing trust 
the development is built around a 
posttensioned concrete frame with 
a mixture of brick and rainscreen 
cladding with zinc cladding and 
curtain walling to the upper storeys 
communal heating and water services 
are provided and self metered from 
a central plant room the majority of 
the inverted flat roof area is designed 
as a living “brown” roof
the scheme embraces environmental 
and security expectations by achieving 
ecohomes ‘very good’ status 
incorporating stringent secure by 
design requirements in addition a 
number of  the apartments are designed 
to meet lifetime homes standards
social housing 
mare street hackney for the metropolitan housing trust £155m
1rnwhar09frontindd   19 15122009   092135 20
specialist building
review of operations continued
walter lilly continues to lead in 
the restoration and refurbishment 
of high quality and prestigious 
residential properties in and around 
london and has particular expertise 
in the transformation of historic 
and listed buildings walter lilly 
is experienced in the provision of 
substantial temporary works which 
proves invaluable for the complex 
nature and locations of a large 
number of their projects
walter lilly also has particular skills 
in providing innovative solutions for 
extending properties underground 
which is a major requirement for most 
residential projects in london in the 
year grosvenor crescent provided 
some challenging conditions with 
work on the underground car park 
and the conversion of eight georgian 
townhouses into 17 apartments 
in another residential contract work 
is on site at park lane with a £35m 
property refurbishment the largest 
private residence project undertaken 
to date 
walter lilly has completed a further 
apartment fit out at manresa road in 
kensington making this project the third 
apartment completed in this prestigious 
development ‘shell and core’ works at 
compton avenue with a value of £42m 
was also awarded
ongoing works at the palace of 
westminster for the restoration and 
overhaul of the iron roofs around 
speaker’s court is progressing well 
work began in may and a significant 
amount of iron roof fabric has been 
returned to our off site restoration 
facilities where specialist conservation 
is underway
recently completed projects include 
the faithful restoration of the peach 
house at the president’s residence 
in phoenix park dublin valued at £12m 
and the restoration of the historically 
significant iron conservatory at 
ballywalter house on the outskirts 
of belfast for the baron dunleath
earlier in the year walter lilly 
completed the construction of a 
permanent memorial to the victims 
of the 7th of july london bombings 
sited in hyde park the memorial 
consists of 52 stelae and was opened 
in july by hrh the prince of wales
restoration and 
refurbishment
11
metre deep stacking car park 
at grosvenor crescent
4218
cast iron roof tiles to be refurbished 
at the palace of westminster
1rnwhar09frontindd   20 15122009   092136 renew holdings plc annual report  accounts 2009 21
specialist building
the project at grosvenor crescent 
continues with the formation of an 
underground 21 capacity car stacking 
system the car park is located in 
an 11 metre deep basement over 
three storeys 
to enable work on the basement 
access was gained to the rear of 
the property with a 16 metre long 
access passage made through the 
listed building 
with the approval of grosvenor and 
english heritage part of the ground 
floor was carefully dismantled before 
being restored piece by piece once 
the works were complete all 300 plus 
pieces were numbered to ensure 
each piece was restored correctly
restoration and refurbishment
grosvenor crescent underground car stacking system
1rnwhar09frontindd   21 15122009   092139 22
review of operations continued
specialist building
many companies within the renew 
group are highly experienced in 
delivering a range of science and 
education projects nationwide earlier 
this year allenbuild completed the 
£22m rossington all saints church 
of england school for the diocese 
of sheffield near doncaster which 
was one of the largest projects 
undertaken this year 
during the year successful completion 
was achieved on the £72m lytham 
medical centre for primary asset which 
allenbuild handed over with “zero 
defects” similarly the awardwinning 
yorkshire forward environmental energy 
technology centre near rotherham is 
now operational the £83m zero carbon 
development has achieved a breeam 
excellent rating and is powered by 
europe’s largest capacity hydrogen 
mini‑ grid system britannia recently 
completed an energy centre for the 
national star college which included a 
biomass facility which provides the new 
and existing buildings with a sustainable 
heating source
work also started on the £5m sandal 
magna junior and infants school 
the sustainable scheme incorporates 
a sedum roof photovoltaics natural 
ventilation and innovative sun shades 
work also commenced on site for 
st helens mbc on the £38m red bank 
community home partnering scheme
enabling works have begun on 
a new campus for kirklees college 
in huddersfield part of the kirklees 
council waterfront quarter development 
the works form part of a larger scheme 
to provide a £46m state‑of‑the‑art 
campus providing approximately 
24000m² of accommodation for the 
college allenbuild is the preferred 
bidder for the overall scheme which 
has funding approved by the learning 
and skills council
new awards in the year include a 
£5m contract with liverpool hope 
university to construct their new 
media and performing arts building 
at the cornerstone campus repeat 
client sefton mbc awarded allenbuild 
the £73m design and build project 
to construct maghull leisure centre 
and library
a large portion of our specialist work 
in the science sector is undertaken by 
walter lilly and allenbuild in the main 
these are delivered under framework 
agreements such as the imperial 
college framework where walter lilly 
has commenced another laboratory 
refurbishment valued at £38m in addition 
and continuing a 17 year relationship with 
glaxosmithkline walter lilly was recently 
awarded a laboratory refurbishment 
at their stevenage complex and the 
virology containment facility at defra 
as part of the veterinary laboratories 
agencies framework
throughout the year a number of 
complex projects have been completed 
successfully including the £125m 
laboratory fit out for new client eisai 
pharmaceuticals and the £54m project 
providing a specialist stores building 
for defra which achieved a breeam 
excellent rating and a silver award from 
the considerate constructors’ scheme
in this sector allenbuild has also been 
awarded the design and build of a 
£64m medical centre at connah’s 
quay for haven healthcare
science and 
education
63
projects awarded to date 
for glaxosmithkline over 
a 17 year relationship
0
defects on lytham medical centre 
handover
1rnwhar09frontindd   22 15122009   092143 renew holdings plc annual report  accounts 2009 23
specialist building
this contract for eisai pharmaceuticals 
was to fit out the newly constructed 
laboratory within the eisai european 
knowledge centre in hatfield 
hertfordshire facilities include 
category ii laboratories write up 
areas and offices this is a fourstorey 
concrete framed building with the 
project being completed within a 
challenging 40 week period
the scope of fitting out included 
a substantial roof level plant room 
and an external nitrogen farm 
the laboratory furniture was 
installed in several phases to allow 
for the sequential integration of the 
laboratory gases data power and 
domestic service installations
the project was carried out on an 
occupied site part of which was still 
under construction involving close 
and careful liaison to coordinate 
access deliveries security and 
health and safety 
science and education 
laboratory fit out for eisai pharmaceuticals £125m
1rnwhar09frontindd   23 15122009   092145 24
considerate constructors’ scheme
the considerate constructors’ scheme 
is a voluntary initiative to improve the 
image of construction it is a requirement 
that all our sites register with the scheme 
where they are measured against a code 
of practice in eight categories in the past 
year a number of our excellent sites have 
been recognised with awards in addition 
many more of our sites have won a 
certificate for performance beyond 
compliance from the ccs
employment and training
many of the renew businesses look 
to close the future gap in specialist skills 
by embracing apprentice programmes 
within the nuclear and restoration sectors 
shepley continues to provide significant 
investment in the apprenticeship 
programme the programme currently 
supports 27 apprentices at various 
stages of development 
allenbuild regularly awards work 
placements to graduates who are 
studying subjects such as project 
management surveying and structural 
engineering walter lilly supports a 
number of students through sponsorship 
at loughborough university who are 
undertaking similar courses and as part 
of the sponsorship students are offered 
work placements and employment 
during holiday periods 
day release schemes are supported 
throughout the group as is work 
experience for younger students 
shepley continues to support the 
arkwright scholarship scheme 
the scheme selects one scholar 
annually who is focused on a career in 
mechanical or electrical engineering
corporate social responsibility
renew holdings plc is committed 
to minimising the social economic 
and environmental impact of our 
operations and to ensure that 
we constantly improve compliance 
beyond that of legal requirements  
it is our aim to promote lasting benefits 
through our work and we continue to 
improve our corporate social responsibility 
initiatives to reflect the specialist operations 
performed by the group
safety
the safety of the group’s employees 
and those working with us is essential 
the group places safety at the top of its 
agenda this is measured in the accident 
incidence rate which has seen a 64 
reduction over the last four years against 
a cumulative target reduction of 34 
every effort is made to ensure health 
and safety is managed proactively is key 
in our business strategy and is prominent 
throughout all the group’s activities
our businesses are highly experienced 
in some of the most challenging 
environments and during the year a 
number of businesses received awards 
for their work in putting safety first
shepley’s work in the nuclear sector 
saw the achievement of another 
coveted president’s award from rospa 
with subsidiaries pps electrical and 
corporate  
social 
responsibility
west cumberland engineering both 
receiving awards during the year 
britannia also received an award in its 
first year of entering the rospa scheme 
in march shepley was awarded the ‘best’ 
award by the engineering construction 
industry association the award is a 
major safety initiative in the industry and 
given annually to one company which 
demonstrates substantial improvements 
in leadership and behavioural safety
in 2009 shepley and pps both achieved 
one million man hours without a single 
riddor lost time accident
environment and sustainability
sustainability is central in the group’s 
commitment to corporate social 
responsibility the group has expertise 
in sustainable technologies such as 
ground source heating biomass boilers 
and wind turbines our work on recycling 
and treatment of contaminated waste in 
conjunction with environmental initiatives 
such as using canals and waterways 
allows both renew and clients to meet 
their environmental targets
each business in the group has 
achieved iso 14001 accreditation 
the voluntary environmental 
management standard involves 
rigorous assessment of environmental 
policies and procedures reducing 
energy consumption sustainable 
sourcing of materials and recycling are 
some of the areas assessed this year 
saw allenbuild awarded the private 
sector sustainability procurement 
package by envirolink in conjunction 
with action sustainability allenbuild 
has continued to work with envirolink 
throughout the year
1rnwhar09frontindd   24 15122009   092147 renew holdings plc annual report  accounts 2009 25
corporate social responsibility
in november seymour was proud to 
be awarded the ceca ne training 
company of the year 2009 earlier this 
year at the constructing excellence 
awards seymour received the award 
for ‘leadership and people development’ 
and was proud to come second at the 
national awards the award focuses 
on safety awareness a flexible attitude 
to tasks willingness to learn or retrain 
and project management
community engagement
allenbuild continues its school 
sponsorship programme with 
ongoing support of the construction 
department at maghull high school 
in merseyside 
seymour together with local education 
providers hartlepool college and st hild’s 
specialist engineering school have a 
‘memorandum of understanding’ to 
promote construction amongst young 
people the commitment involves a 
range of opportunities from work 
experience to site visits and 
representation at career events
in january shepley established the 
shepley group fund and along with 
the cumbria grassroots endowment 
fund sponsor a range of local causes 
in addition to donations shepley has 
introduced social awareness training 
apprentices have carried out extensive 
work at the centre for complimentary 
care at muncaster a deserving cause 
in the heart of the local community
allenbuild supported liverpool 
hope university and the adjacent 
shrewsbury youth club in displaying 
images from their photographic 
exhibition on hoardings around 
the site
allenbuild has also been working 
with the school ‘eco council’ at 
sandal magna primary school to 
highlight some of the sustainable 
initiatives that have been incorporated 
into their new building monthly 
meetings and site tours have 
increased awareness with both 
staff and pupils
all employees are actively 
encouraged to become involved 
in their local communities work 
often involves employees giving 
their personal time for a range of 
activities such as community forums 
and fundraising for local causes 
charitable giving 
across the group a range of 
charitable work was undertaken 
in the year for local charities with 
whom our employees feel personally 
connected of the many events our 
employees participated in the ‘jeans 
for genes’ day and the gloucester 
dragon boat race raising funds for 
clic sargent and children with cancer 
vhe completed the gruelling 42 mile 
lyke wake walk for the bluebell 
wood children’s hospice in addition 
the james hopkins trust the sue 
ryder care court hospice the ilkley 
candlelighters climb and the hospital 
heartbeat appeal were all supported 
by renew and its employees during 
the year
1rnwhar09frontindd   25 15122009   092148 renew holdings plc annual report  accounts 2009 26
the directors present their report and the audited accounts for the year ended 30 september 2009
principal activities
for the year ended 30 september 2009 the principal activity of the group was in construction and construction related 
activities the main construction activities are carried out in the united kingdom with some development activities in the 
usa more details of these activities the year’s trading and future developments are contained in the chairman’s statement 
the chief executive’s review the review of operations and the financial review a list of the principal operating subsidiaries 
of the group as at 30 september 2009 appears on page 73
results and dividends
the group profit for the year was £378000 2008 £5260000 the directors recommend the payment of a final dividend 
on ordinary shares of 20p 2008 20p giving a total for the year of 30p 2008 30p
business review
information that fulfils the business review requirements applicable to the group can be found in this report 
the chief executive’s review and the review of operations and is incorporated into this report by cross reference
acquisitions and disposals
the group acquired the whole of the issued share capital of c a pumps limited with effect from 1 october 2008 for 
a cash consideration of £1760000 on 22 may 2009 the group also acquired the business of mothersill engineering 
for a cash consideration of £432000 on 24 september 2009 the group disposed of its interest in the share capital of 
rubber recovery limited for a minimal net consideration
key performance indicators
the directors have established a number of key performance indicators which they use to measure and monitor the 
performance of the group in a number of different areas these measures are set out in the table below due to the challenging 
economic conditions which have prevailed throughout the 200809 financial year the board has revised its short term target 
for operating profit performance the target which is set prior to financial income or expense exceptional costs and amortisation 
charges as a percentage of revenue has been reduced from 22 by 2010 to 15 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 
directors’ report
1rnwhar09backindd   1 14122009   173356 renew holdings plc annual report  accounts 2009 27
principal risks and uncertainties
this annual report contains certain forward looking statements these statements are made by the directors in good faith 
based on the information available to them up to the time of approval of this report actual results may differ to those expressed 
in such statements depending on a variety of factors these factors include customer acceptance of the group’s services 
levels of demand in the market restrictions to market access competitive pressure on pricing or additional costs failure 
to retain or recruit key personnel and overall economic conditions
a risk inherent in the 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 receivables and trade payables that arise directly from its operations 
the group also uses foreign currency borrowings to hedge certain of the currency risks arising from the group’s overseas 
operations it is and has been throughout the period under review the group’s policy that no trading in financial instruments 
shall be undertaken the main risks arising from the group’s financial instruments are interest rate risk liquidity risk and 
foreign currency risk
interest rate risk
the group borrows in dollars at floating rates of interest under the terms of loan facilities with barclays bank plc interest 
rates are linked to the bank’s prime us dollar lending rate hence enabling the group to track market interest rates interest 
bearing assets comprise cash and bank deposits and earn interest at floating rates
liquidity risk
the group’s policy is to ensure availability of operating funds by maintaining an appropriate cash balance in both current 
and deposit accounts and when necessary to establish appropriate levels of borrowing facilities to provide 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 and the company’s balance sheet the company seeks to limit the effect of this currency 
exposure by using foreign currency borrowings to hedge the debt due to it by its us subsidiary against currency depreciation 
the principal hedging instrument used by the group is a us95m loan which was taken out on 26 march 2009 when 
the exchange rate was 1463 £1 as at 30 september 2009 £12048000 2008 £11942000 of the group’s assets are 
denominated in foreign currency the group does not use derivative financial instruments in its management of foreign 
currency risk
credit risk
the group’s principal financial assets are bank balances cash amounts recoverable on contracts and trade receivables 
which represent the group’s maximum exposure to credit risk in relation to financial assets
the group’s credit risk is primarily attributable to its amounts recoverable on contracts and trade receivables
credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending 
upon their credit rating the amounts presented in the balance sheet are net of allowances for doubtful debts estimated 
by the group’s management based on prior experience and their assessment of the current economic environment
1rnwhar09backindd   2 14122009   173357 renew holdings plc annual report  accounts 2009 28
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 and
c  ensure that payments are made in accordance with the terms of the contract or order providing that the presented 
documentation is complete and accurate
the company’s average creditor days during the year were 33 days 2008 32 days
donations
charitable donations made by the group during the year amounted to £31781 2008 £34592 
the group made no political donations during the year 2008 £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 during the year the group appointed a group communications coordinator whose 
responsibilities include the collection and dissemination of information about the activities and performance of the group to 
its employees
the group continues to be committed to the health safety and welfare of its employees and to observe the terms of the 
health and safety at work act 1974 and all other relevant regulatory and legislative requirements
it is the policy of the group that there shall be no discrimination or less favourable treatment of employees workers or job 
applicants in respect of race colour ethnic or national origins religious beliefs sex sexual orientation disability political 
beliefs age or marital status full consideration will be given to suitable applications for employment from disabled persons 
where they have the necessary abilities and skills for that position and wherever possible to 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
b may continues as the designated board director of health and safety with group responsibility for safety and 
environmental management health safety and environmental management issues and reports are regularly reviewed 
at group board meetings with the head of department in attendance when necessary
the executive management committee chaired by the chief executive discusses and progresses policy legislative 
changes best practice training needs inspections audits internal and external performance measurement and statistical 
information all topics are discussed with a specific focus on improvement 
control at business level remains with subsidiary managing directors who are required to appoint a director who is 
responsible for safety and environmental matters both safety and environmental issues are discussed as the first agenda 
item at monthly board meetings each business safety and environmental meeting encourages open communication between 
all employees and is a key part of the group’s efforts to gather and disseminate good practice for inclusion in businessbased 
management systems minimum safety and environmental standards are contained within bespoke business safety and 
environmental management systems this system is based on group activities and provides specific standards procedures 
information forms and advice which accommodate changes in legislation expected during the coming financial year 
management advice is provided by the group health safety and environmental department consisting of the group health 
safety and environmental director an administrator and regional group safety and environmental advisors
directors’ report continued
1rnwhar09backindd   3 14122009   173357 renew holdings plc annual report  accounts 2009 29
health and safety management
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 attendance on the five day citb site safety management training scheme continues 
to be a requirement for all construction management personnel with a two day refresher required every five years a one day 
directors and senior managers course is available internally and was used to introduce new systems and detail changes to 
construction legislation short duration ‘tool box talks’ and ‘safety briefings’ are increasingly used to enhance the knowledge 
and competence of supervisory management 
group policy requires each business to report and record all injuries diseases and dangerous occurrences regardless 
of severity an incident database is maintained to collate this information and provide statistical data allowing performance 
to be measured and determine system amendment and future training requirements a system of safety and environmental 
alerts ensures lessons learnt and changes to working practices are rapidly transmitted to our workforce businesses and 
their contractors the accident incidence rate air for the year ended 30 september 2009 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 further reducing the air by 5 against this taxing target the group actually achieved 
a 17 reduction
corporate social responsibility and the environment
the group’s corporate social responsibility report which includes its report on the environment is on pages 24 and 25
directors
the directors of the company who served throughout the year and brief biographical details are set out below 
nonexecutive directors
john bishop – director 64 was 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 twelve years 
at morgan sindall plc as development director and latterly as finance director he is a nonexecutive director of 
beagle aircraft limited
roy harrison obe – director 62 was appointed to the board as a nonexecutive director in november 2003 subsequently 
he was 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 senior independent director of bss group plc and has a number of 
investing director positions in private construction materials companies he is governor and chairman of a number of 
city academies
executive directors
brian may – director 58 was appointed to the board as chief executive officer in june 2005 he is a chartered civil 
engineer he 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 
john samuel – director 53 joined the board in may 2006 as group finance director he was previously group finance 
director at filtronic plc from 1991 until 2004 and subsequently chief financial officer of zetex plc from july 2004 until 
february 2006 he qualified as a chartered accountant in 1981 with deloitte haskins and sells before serving as a partner 
with baker tilly from 1987 until 1991 
an organogram with the directors’ areas of responsibility can be found on the company’s website wwwrenewholdingscom
john samuel will retire by rotation at the 2009 annual general meeting “agm” and will offer himself for reappointment 
the board recommends the reappointment of john samuel as it is considered that he brings considerable management 
and financial experience to the group’s business
the articles of association provide that each director shall be indemnified by the company against losses costs and 
expenses he may sustain or incur in connection with the performance of his duties of office to the fullest extent permitted 
by law the company has purchased and maintained throughout the year directors’ and officers’ liability insurance in respect 
of its directors
1rnwhar09backindd   4 14122009   173357 renew holdings plc annual report  accounts 2009 30
directors’ interests
the beneficial interests of the directors and their immediate family members in the shares of the company and options 
for shares are set out on page 33 no director has any interest in any other group company details of the directors’ 
remuneration and service contracts appear on page 32
disclosable interests
as at the date of this report the company has been notified of the following disclosable interests in the voting rights 
of the company 
      number of percentage 
       ordinary  of issued 
      shares share capital
gartmore investment limited       9607672 1604
octopus investments nominees limited      6647764 1110
brewin dolphin limited      3620498 604
hargreave hale limited      2581900 431
rensburg sheppards investment management limited    2467820 412
g merrett      2323250 388
share capital
as at the date of this report the total number of shares in issue being ordinary shares of 10p each is 59898927 
during the year the company has not bought back any of its own shares nor issued any new share capital
disclosure of information to auditors
the directors who held office at the date of approval of this directors’ report confirm the following
 so far as each director is aware there is no relevant audit information of which the group’s auditors are unaware and
  each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any 
relevant audit information and to establish that the group’s auditors are aware of that information
auditors
resolutions will be proposed at the forthcoming agm to reappoint kpmg audit plc as auditors to the group and to 
authorise the directors to determine their remuneration
approval
the board approved the report of the directors on 24 november 2009
by order of the board
john samuel fca
company secretary
24 november 2009
directors’ report continued
1rnwhar09backindd   5 14122009   173357 renew holdings plc annual report  accounts 2009 31
directors’ remuneration report
the directors present the directors’ remuneration report the “remuneration report” for the financial year ended 
30 september 2009
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 decided to review remuneration matters as a full 
board during the year however the board decided to reinstate the committee with roy harrison as its chairman and 
john bishop the sole independent nonexecutive director also serving the committee held three meetings during the 
financial year to discuss remuneration arrangements 
the remuneration committee’s terms of reference include
a  to determine and agree with the board the framework and policy for the remuneration packages including 
bonuses incentive payments and share options or share awards of the executive directors and members of the 
executive management
b   to review and approve the design of all share incentive plans and performance related pay schemes for approval 
by the board and shareholders as applicable
c  to determine targets and awards made under share incentive plans and performance related pay schemes
d  to determine the policy for and scope of pension arrangements for each executive director and other 
senior executives and
e  to ensure contractual terms and payments made on termination are fair to the individual and the company and that 
failure is not rewarded 
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 his own remuneration
remuneration policy
the company’s remuneration policy is that the remuneration package of the executive directors should be sufficiently 
competitive to attract retain and motivate directors to achieve the company’s objectives without making excessive 
payments the remuneration and employment terms of the executive directors are determined by the committee by 
comparison with salaries paid and terms agreed with directors in similar companies in the same sector and of a similar 
size and after a review of the performance of the individual
it is the aim of the committee to reward executive directors competitively and on the broad principle that they should 
be in the range of median to 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 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
1rnwhar09backindd   6 14122009   173357 renew holdings plc annual report  accounts 2009 32
directors’ remuneration report continued
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 the “2004 esos” was approved at an extraordinary general meeting 
“egm” held on 11 march 2004 during the year 829403 options were granted under the 2004 esos to the executive 
directors there are 1702156 other options outstanding under the scheme 
the renew savings related share option scheme the “renew saye” was also approved at the egm on 11 march 2004 
there are no options outstanding under this scheme the company’s policy to grant options or awards under the above 
schemes is at the remuneration committee’s discretion as and when considered appropriate
pension arrangements
until 1 april 2008 the group provided retirement benefits to employees through independent pension schemes the assets 
of these schemes are held by trustees and managed by independent investment managers on 1 april 2008 the principal 
such scheme the renew holdings retirement benefits scheme commenced winding up and the group established 
individual stakeholder plans for each member into which the group continues to make contributions b may and j samuel 
are not members of these schemes and receive salary in lieu of pension contributions from the company
following the adoption of new articles of association at the agm on 28 january 2009 the restriction on the retirement age 
of the executive directors was removed 
service contracts and letters of appointment
the company’s policy is for all of the directors to have twelve month rolling service contracts that provide for a twelve month 
notice period the fees of nonexecutive directors are determined by the full board within the limits set out in the articles of 
association the nonexecutive directors are not eligible for bonuses pension benefits share options or other benefits 
the directors are indemnified to the full extent permitted by statute under the articles of association
the service contracts of the directors who served during the year ended 30 september 2009 include the following terms
    unexpired notice 
  executive date of terms  period 
directors  nonexecutive contract months  months
j bishop  nonexecutive 1 september 2008 rolling one year 12
r harrison  nonexecutive 1 february 2009 rolling one year 12
b may   executive 20 june 2005 rolling one year 12
j samuel  executive 17 may 2006 rolling one year 12
directors’ remuneration
information is provided below for directors who served during the financial year and as at 30 september 2009
      total total 
   salary   emoluments emoluments 
 	 	 fees	 bonuses	 benefits 2009 2008 
  notes £000 £000 £000 £000 £000
executive directors
b may  1234 287 131 54 472 539
j samuel  1234 221 55 42 318 368
       
      790 907
nonexecutive directors
r harrison   55 — — 55 53
j bishop   30 — — 30 30
       
      875 990
       
notes
1 the highest paid director for 2009 and 2008 was b may who received emoluments of £472000 2008 £539000 
2 benefits include car allowances and certain medical cover for the director and immediate family
3  b may and j samuel received payments in lieu of company pension contributions which are paid through payroll and taxed as salary and are 
included in benefits above
4  bonuses include £60k earned by b may relating to prior years which was charged in the current financial year the other bonuses were earned 
by b may and j samuel during the current financial year and will be paid in the year ending 30 september 2010
‑ 1rnwhar09backindd   7 14122009   173357 renew holdings plc annual report  accounts 2009 33
directors’ share options
options have been granted to b may and j samuel under the renew esos as set out in the table below no other options 
lapsed were exercised or were awarded during the year the market price of the company’s shares at 30 september 2009 
was 365p and the range of market prices during the year was between 265p and 665p
information is provided below for directors who served during the financial year and as at 30 september 2009
      cumulative total
     30 september 1 october 
 2009 award 2008 award 2007 award 2006 award  2009 2008
b may 525963 265048 331210 476190 1598411 1072448
j samuel 303440 152912 191082 285714 933148 629708
date of award 26 november 2008 3 december 2007 8 january 2007 7 june 2006
exercise price £ 0545 103 0785 0525
earliest exercise date 26 november 2011 3 december 2010 8 january 2010 7 june 2009
expiry of exercise period 26 november 2018 3 december 2017 8 january 2017 7 june 2016
performance criteria for the vesting of the share options is set out in note 20 to the financial statements
directors’ share interests
those directors serving at the end of the year and their immediate families had interests in the share capital of the company 
at 30 september 2009 as follows
      ordinary shares  
      of £010 each
      30 september  30 september 
      2009 2008
j bishop      10000 10000
r harrison      60000 60000
b may      305000 155000
j samuel      210000 130000
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 24 november 2009 and signed on its behalf by
roy harrison obe
chairman
24 november 2009
1rnwhar09backindd   8 14122009   173357 renew holdings plc annual report  accounts 2009 34
as an aim listed company renew is not required to follow the provisions of the combined code as set out in the financial 
services authority’s listing rules the directors however recognise the importance of and accordingly support the principles 
of good corporate governance as contained within the combined code the directors normally seek to follow the code 
to the extent considered relevant for an aim listed company but 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 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 29
as the company has only had one independent nonexecutive 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 appropriate training briefings and induction are available to all directors 
on appointment and subsequently as necessary taking into account existing qualifications and experience new directors 
are subject to election by shareholders at the first agm after their appointment 
the board met formally ten times in the year with all directors in attendance plus committee meetings dealing with the daily 
business of the company being held as necessary the board receives written and oral reports from the executive directors 
ensuring matters are considered fully and enabling directors to discharge their duties properly there is a formal schedule of 
matters reserved for the board’s decision ensuring the maintenance of control over strategic financial and operational matters 
in addition procedures are in place for the directors to seek independent professional advice if necessary at the 
company’s expense
board committees
in july 2004 the board decided to suspend all committees temporarily due to the shortage of independent nonexecutive 
directors on the board since the committees became 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 previous role as an executive director prevents him from being considered as independent under the combined code 2003 
following the appointment of j bishop he became the sole independent nonexecutive director during the year the board 
decided to reinstate the committees with j bishop acting as chairman of the audit committee and r harrison acting as 
chairman of both the remuneration and nominations committees 
the board delegates clearly defined powers to its audit remuneration and nominations committees each of the board’s 
committees has carefully drafted terms of reference 
the remuneration committee which comprises r harrison and j bishop determines and agrees with the board the framework 
and policy of executive remuneration packages including bonuses incentive payments share options or awards and pension 
arrangements further information concerning the remuneration committee is set out in the directors’ remuneration report 
on pages 31 to 33 
the nominations committee which comprises the entire board monitors the composition of the board and recommends 
the appointment of new directors the nominations committee with all directors present has held two meetings during 
the year to discuss nomination matters
the nominations committee terms of reference include
a to review the structure size and composition of the board
b to consider succession planning for directors and senior executives
c to identify and nominate for approval by the board suitable candidates to fill board vacancies and
d  to make recommendations to the board on the contents of letters of appointment directors’ duties reappointment 
or reelection of directors upon conclusion of a specified term or retirement by rotation
corporate governance
1rnwhar09backindd   9 14122009   173357 renew holdings plc annual report  accounts 2009 35
board committees continued
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 audit committee 
has held three meetings to consider audit committee business the audit committee consists of j bishop and r harrison 
the executive directors are invited to attend audit committee meetings but at least two meetings are held each year with 
the external auditors at which the executive directors are not present the audit committee considers the adequacy and 
effectiveness of the risk management and control systems of the group and reports the results to the board it reviews 
the scope and results of the external audit its cost effectiveness and the objectivity of the auditors the audit committee 
monitors the 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 board forms a general purposes committee from time it time as it deems necessary this committee is constituted 
by the two executive directors and considers individual business matters which have been specifically delegated to it 
by the board
internal controls
throughout the financial year ended 30 september 2009 and up to the date of approval of the annual report and accounts 
the group has fully complied with the relevant provisions of the code and the 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 and a clear 
organisational structure within which individuals’ responsibilities are identified and monitored these results and processes 
are monitored updated reviewed and considered by the board the group has established a series of minimum standards 
in a number of financial and operational areas with which each business within the group must comply group management 
monitors and reviews compliance with these requirements on a periodic basis due to the size and nature of the group 
the board does not consider that a separate internal audit function is necessary however during 2009 the group carried 
out a programme of internal audit conducted by the group commercial director and by members of the various subsidiaries’ 
finance teams this system of peer review promotes best practice as well as ensuring that group minimum requirements 
as to procedures and internal controls are being complied with the reports from these internal audits are made available 
both to the board and to the external auditors
going concern
the directors have reviewed the budgets and forecasts prepared by the group and its trading subsidiaries and consider that 
at the time of approving the financial statements there is a reasonable expectation that the company and the group have 
adequate resources to continue in operational existence for the foreseeable future for this reason they continue to adopt 
the going concern basis in preparing the financial statements
directors’ remuneration
the company’s policy on the remuneration of executive directors and information relating to the directors’ remuneration 
and their interests in share options is included in the directors’ remuneration report
1rnwhar09backindd   10 14122009   173357 renew holdings plc annual report  accounts 2009 36
directors’ and officers’ indemnity
the articles of association provide that each director or other officer or auditor of the company shall be indemnified by 
the company against losses costs and expenses he may sustain or incur in connection with the performance of his duties 
of office to the fullest extent permitted by law
shareholder relationships
members of the board have dialogue with individual shareholders during the year in addition to the annual and interim report 
and accounts the chairman addresses shareholders at the agm and invites questions to any members of the board 
the agm is normally attended by all directors and provides an opportunity for communication with those shareholders 
attending notice of the agm is given to shareholders at least 21 days in advance and separate resolutions are proposed 
on each substantially separate issue where resolutions at the agm are dealt with by show of hands the results of proxy 
votes for and against are still announced 
financial and other information about the group is available on the company’s website wwwrenewholdingscom from 
which shareholders can also access their shareholding details via a link to the website of capita registrars plc
company secretary
as part of the group’s redundancy and restructuring costs during the year b feather resigned as company secretary 
and the board appointed j samuel the group finance director to the position
annual general meeting
the agm will be held on 27 january 2010 the notice for which is set out on page 75 the notice contains special business 
relating to the renewal of the board’s power to allot equity shares brief details of the purpose and effect of the proposed 
resolutions are set out in the notice of agm and the notes thereto on page 76 
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 24 november 2009
by order of the board
john samuel
company secretary
24 november 2009
corporate governance continued
1rnwhar09backindd   11 14122009   173357 renew holdings plc annual report  accounts 2009 37
statement of directors’ responsibilities in respect of the annual report and the financial statements
the directors are responsible for preparing the annual report and the group and parent company financial statements 
in accordance with applicable law and regulations
company law requires the directors to prepare group and parent company financial statements for each financial year 
as required by the aim rules of the london stock exchange they are required to prepare the group financial statements in 
accordance with ifrss as adopted by the eu and applicable law and have elected to prepare the parent company financial 
statements in accordance with uk accounting standards and applicable law uk generally accepted accounting practice
under company law the directors must not approve the financial statements unless they are satisfied that they give a true 
and fair view of the state of affairs of the group and parent company and of their profit or loss for that period in preparing 
each of the group and parent company financial statements the directors are required to
 select suitable accounting policies and then apply them consistently
 make judgements and estimates that are reasonable and prudent
  for the group financial statements state whether they have been prepared in accordance with ifrss as adopted by the eu
  for the parent company financial statements state whether applicable uk accounting standards have been followed 
subject to any material departures disclosed and explained in the parent company financial statements and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the 
parent company will continue in business
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent 
company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent company 
and enable them to ensure that its financial statements comply with the companies act 2006 they have general responsibility 
for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud 
and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website legislation in the uk governing the preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions
1rnwhar09backindd   12 14122009   173357 renew holdings plc annual report  accounts 2009 38
independent auditors’ report to the members of renew holdings plc
we have audited the financial statements of renew holdings plc for the year ended 30 september 2009 set out on 
pages 39 to 73 the financial reporting framework that has been applied in the preparation of the group financial statements 
is applicable law and international financial reporting standards “ifrss” as adopted by the eu the financial reporting 
framework that has been applied in the preparation of the parent company financial statements is applicable law and 
uk accounting standards uk generally accepted accounting practice
this report is made solely to the company’s members as a body in accordance with sections 495 and 496 of the 
companies act 2006 our audit work has been undertaken so that we might state to the company’s members those 
matters we are required to state to them in an auditors’ report and for no other purpose to the fullest extent permitted 
by law we do not accept or assume responsibility to anyone other than the company and the company’s members 
as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 37 the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit 
the financial statements in accordance with applicable law and international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices board’s “apb’s” ethical standards for auditors
scope of the audit of the financial statements
a description of the scope of an audit of financial statements is provided on the apb’s website at wwwfrcorgukapbscopeukp 
opinion on financial statements
in our opinion
  the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs 
as at 30 september 2009 and of the group’s profit for the year then ended
  the group financial statements have been properly prepared in accordance with ifrss as adopted by the eu
  the parent company financial statements have been properly prepared in accordance with uk generally accepted 
accounting practice
  the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on other matters prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements 
are prepared is consistent with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report 
to you if in our opinion
  adequate accounting records have not been kept by the parent company or returns adequate for our audit have 
not been received from branches not visited by us or
  the parent company financial statements are not in agreement with the accounting records and returns or
  certain disclosures of directors’ remuneration specified by law are not made or
  we have not received all the information and explanations we require for our audit
chris hearld senior statutory auditor
for and on behalf of kpmg audit plc
chartered accountants
registered auditor
24 november 2009 
1rnwhar09backindd   13 14122009   173357 renew holdings plc annual report  accounts 2009 39
  before   before   
  exceptional exceptional  exceptional exceptional  
  items and items and  items and items and  
  amortisation amortisation  amortisation amortisation  
  of intangible of intangible  of intangible of intangible  
  assets assets total assets assets total 
  2009 2009 2009 2008 2008 2008 
 note £000 £000 £000 £000 £000 £000
group revenue from  
continuing activities 2 316648 — 316648 390557  — 390557
cost of sales   282638  — 282638 347820  — 347820
       
gross	profit  34010  — 34010 42737  — 42737
administrative expenses   29423 4375 33798 35137 2765 37902
       
operating	profit 3 4587 4375 212 7600 2765 4835
finance income  939  — 939 1618  — 1618
finance costs 4 46 — 46 254  — 254
other finance income –  
defined benefit pension scheme 4 65  — 65 543  — 543
       
profit	before	income	tax  5545 4375 1170 9507 2765 6742
income tax expense 6 1877 1085 792 2209 727 1482
       
profit	for	the	year	attributable	 
to equity holders of the  
parent company  3668 3290 378 7298 2038 5260
       
basic earnings per share 8   063p   878p
diluted earnings per share 8   062p   855p
group statement of recognised income and expense 
for the year ended 30 september 2009
      2009 2008 
     note £000 £000
       
profit for the year attributable to equity holders of the parent company   378 5260
exchange movement in reserves      622 574
movement in actuarial deficit     25 2895 497
movement on deferred tax relating to the defined benefit pension scheme   811 116
       
total recognised income and expense for the year attributable  
to equity holders of the parent company     1084 5453
       
for the year ended 30 september 2009
group income statement
1rnwhar09backindd   14 14122009   173357 renew holdings plc annual report  accounts 2009 40
at 30 september 2009
      2009 2008 
     note £000 £000
noncurrent assets      
intangible assets – goodwill     9 9558 8548
 – other     9 474 620
property plant and equipment     10 5368 4503
deferred tax assets     6 4097 4069
       
      19497 17740
       
current assets     
inventories     11 8082 6367
trade and other receivables     12 67249 87766
current tax assets      44 455
cash and cash equivalents     14 14863 28289
       
      90238 122877
       
       
       
total assets      109735 140617
       
noncurrent liabilities     
obligations under finance leases     17 6 10
retirement benefit obligations     25 2351 1479
deferred tax liabilities     6 233 256
provisions     18 680 1068
       
      3270 2813
       
current liabilities     
borrowings     16 263 110
trade and other payables     15 93612 119246
obligations under finance leases     17 21 67
current tax liabilities      121 159
provisions     18 1119 3941
       
      95136 123523
       
       
       
total liabilities      98406 126336
       
       
       
net assets      11329 14281
       
share capital     20 5990 5990
share premium account     21 5893 5893
capital redemption reserve     21 3896 3896
cumulative translation reserve     21 1046 424
share based payments reserve     21 162 233
retained earnings     21 5658 2155
       
total equity     22 11329 14281
       
approved by the board and signed on its behalf by 
r harrison obe
chairman 
24 november 2009
group balance sheet
1rnwhar09backindd   15 14122009   173358 renew holdings plc annual report  accounts 2009 41
for the year ended 30 september 2009
group cash flow statement
      2009 2008 
      £000 £000
profit	for	the	year      378 5260
amortisation of intangible assets      309 248
depreciation      1497 1708
profit on sale of property plant and equipment     71 262
increasedecrease in inventories      935 716
decrease in receivables      21646 2405
decrease in payables      30165 1599
current service cost in respect of defined benefit pension scheme    70 72
cash contribution to defined benefit pension scheme     2028 2106
incomeexpense in respect of share options     71 136
financial income      1004 2161
financial expenses      46 254
interest paid      46 254
income taxes receivedpaid      323 1344
income tax expense      792 1482
       
net	cash	outflowinflow	from	operating	activities	    9259 4555
       
investing activities       
interest received      939 1618
proceeds on disposal of property plant and equipment    399 1267
purchases of property plant and equipment     1606 2028
acquisition of subsidiaries net of cash acquired     2260 32
       
net	cash	outflowinflow	from	investing	activities	    2528 825
       
financing activities       
dividends paid      1797 1317
repayments of obligations under finance leases     104 470
       
net	cash	outflow	from	financing	activities	    1901 1787
       
net decreaseincrease in cash and cash equivalents    13688 3593
cash and cash equivalents at beginning of year     28179 24400
effect of foreign exchange rate changes on cash and cash equivalents   109 186
       
cash and cash equivalents at end of year     14600 28179
       
bank balances and cash      14863 28289
borrowings      263 110
       
      14600 28179
       
1rnwhar09backindd   16 14122009   173358 renew holdings plc annual report  accounts 2009 42
notes to the accounts
1 accounting policies 
presentation	of	consolidated	financial	statements
the consolidated financial statements have been prepared in accordance with the international financial reporting 
standards “ifrs” as adopted by the eu “adopted ifrs” the financial statements are presented in sterling since 
this is the currency in which the majority of the group’s transactions are denominated
accounting estimates and judgements
in the preparation of these financial statements the board has made certain judgements and estimates which impact the 
measurement of various assets and liabilities in the group balance sheet the value of transactions recorded in the group 
income statement and the movements in equity as shown in the group statement of recognised income and expense 
the actual financial outcomes may ultimately differ from that which is indicated by these judgements and estimates 
estimates and judgements are reviewed by management and the board on an ongoing basis and changes which 
may arise in them are reflected in the financial statements for the period in which such changes are made
the board has determined that the following areas are those in which estimates and judgements have been made 
and where material impacts could arise in the financial statements were such estimates and judgements to be varied
a accounting for construction contracts in accordance with ias 11 “construction contracts”
ias 11 requires management to estimate the total expected costs on a contract and the stage of contract completion in 
order to determine both the revenue and profit to be recognised in an accounting period the group has control and review 
procedures in place to monitor and evaluate regularly the estimates being made to ensure that they are consistent and 
appropriate this includes reviewing the independent certification of the value of work done the progress of work against 
contracted timescales and the costs incurred against plan 
b impairment of goodwill in accordance with ias 36 “impairment of assets”
in accordance with ias 36 goodwill is tested annually for impairment by comparing the carrying value of goodwill with 
the recoverable amount which is determined by an estimation of the value in use of the related cash generating unit to 
which the goodwill is attributed the calculation of the value in use requires estimates to be made of the future cash flows 
of the cash generating unit and the timescale over which they will arise estimated growth rates and discount factors are also 
used in the calculation to estimate the net present value of the cash flows more information is given in note 9 to these 
financial statements
c  recognition and measurement of intangible assets in accordance with ifrs 3 “business combinations” 
and ias 38 “intangible assets”
ifrs 3 requires that fair values are attributed to the assets and liabilities acquired in a business combination as a result of 
the seymour and ca acquisitions the group has recognised as an intangible asset the value of certain contractual rights 
seymour and ca have in framework agreements with major customers the recognition and subsequent measurement of 
these assets required management to make estimates as to the future economic benefits which were encapsulated within 
the framework agreements this was done by reviewing the historic cash flows which had been received by seymour and 
ca during the life of the agreements estimating the future cash flows and then discounting them to determine a net present 
value the life of these cash flows was determined as the remaining period of the agreements more information is given in 
note 9 to these financial statements
d accounting for the defined benefit pension scheme in accordance with ias 19 “employee benefits”
the independent actuary to the lovell pension scheme calculates the group’s liability in respect of the defined benefit 
scheme the actuary makes assumptions as to discount rates salary escalations expected returns on scheme assets 
future pension increases mortality rates applicable to members and future rates of inflation these assumptions are made 
under the board’s direction the board determines the appropriateness of these assumptions by benchmarking them 
against those used by other schemes and by taking advice from the independent actuary if the actual experience of the 
scheme is different from the assumptions used then the pension liability may differ from that shown in these financial 
statements more information is given in note 25 to these financial statements 
1rnwhar09backindd   17 14122009   173358 renew holdings plc annual report  accounts 2009 43
1 accounting policies continued
e accounting for provisions in accordance with ias 37 “provisions contingent liabilities and contingent assets”
the group has made provisions against two specific areas where the board has determined that liabilities exist but 
where judgements have to be made as to the quantification of such liabilities a provision has been made for onerous 
lease contracts in respect of property leases where the board has determined that the expected economic benefits to be 
derived from the leases are less than the unavoidable cost of meeting the group’s obligations under the lease contract 
this could arise where the group is the head lessee for a property lease contract where the property is not used by the 
group and where the group has not been able to sublet the property or has only been able to do so on terms which are 
less favourable than those of the head lease  
the group has received the decision from the office of fair trading “oft” following its investigation into tender activities 
in the construction sector the oft’s decision was that a fine of £05m will be levied on allenbuild one of the group’s subsidiaries 
and that a fine of £30m will be levied on bullock construction limited “bullock” one of the group’s former subsidiaries the oft 
holds that the company is jointly and severally liable for both of these fines having taken legal advice the company has 
appealed against the oft’s decision on a number of grounds after considering the legal advice the board believes that the 
company has no liability in respect of the bullock fine the group has provided a sum of £05m as an exceptional charge in 
respect of the allenbuild fine were the company’s appeals against the bullock fine not to be upheld then the group may 
have a greater liability in respect of this matter   
f accounting for deferred taxation in accordance with ias 12 “income taxes” 
the group provides for deferred taxation using the balance sheet liability method deferred tax assets are recognised in 
respect of tax losses where the directors believe that it is probable that future profits will be relieved by the benefit of tax 
losses brought forward the board considers the likely utilisation of such losses by reviewing budgets and medium term 
plans for each taxable entity within the group if the actual profits earned by the group’s taxable entities is different from the 
budgets and forecasts used then the value of such deferred tax assets may differ from that shown in these financial statements
principal accounting policies
i basis of accounting and preparation  
the accounts have been prepared on the going concern basis and in accordance with applicable accounting standards 
under the historical cost convention in determining that the going concern basis is appropriate the directors have reviewed 
budgets including cash flow forecasts and concluded that the group has adequate cash resources to continue trading for 
the foreseeable future  
the consolidated financial statements have been prepared in accordance with ifrs as adopted for use in the eu the group 
has applied all accounting standards and interpretations issued by the iasb and international financial reporting committee 
relevant to its operations and which are effective in respect of these financial statements
in the current year the group has adopted the following new accounting standards 
amendment to ias 39 “financial instruments recognition and measurement on eligible hedged items” this amendment 
has not had a material impact on the group’s operations
new ifrs standards and interpretations not applied 
ias 1 revised “presentation of financial statements – a revised presentation” 
ifrs 2 amendment “share based payment – vesting conditions and cancellations”
ifrs 8 “operating segments”
ifric 15 “agreements for construction of real estate”
ias 23 revised “borrowing costs”  
ias 27 amendment “consolidated and separate financial statements”    
ias 39 amendment “eligible hedged items” 
 these standards and interpretations have been adopted by the eu
the application of these standards and interpretations is not expected to have a material impact on the group’s reported 
financial performance or position however they may give rise to additional disclosures being made in the financial statements
the group has elected not to adopt any standards or interpretations early 
1rnwhar09backindd   18 14122009   173358 renew holdings plc annual report  accounts 2009 44
notes to the accounts continued
1 accounting policies continued
a summary of the more important group accounting policies which have been applied consistently is set out below
ii basis of consolidation 
the group accounts consolidate the accounts of the company and its subsidiary undertakings
the results and net assets of undertakings acquired are included in the group income statement and balance sheet using 
the acquisition method of accounting the results of undertakings acquireddisposed of are included from the date the 
group obtainsloses control
iii revenue
revenue which excludes intragroup revenue and value added tax comprises
–  value of work executed during the year on construction contracts based on monthly valuations and
–  sales of developments and land which are recorded upon legal completion
iv construction contracts
contract revenue includes the initial amount agreed in the contract plus any variations in contract work claims and incentive 
payments to the extent that it is probable that they will result in revenue and can be measured reliably contract revenue and 
expenses are recognised in accordance with the stage of completion of the contract the stage of completion is determined 
by surveys of work performed contract costs incurred that relate to future activities are deferred and recognised as amounts 
recoverable on contracts when it is probable that the total contract costs will exceed contract revenue the expected loss is 
recognised as an expense immediately to the extent that progress billings exceed costs incurred plus recognised profits 
less recognised losses they are recognised as amounts due to construction contract customers 
v segment reporting
segment reporting is based on two segment formats of which the primary format is for business streams in accordance 
with the group’s internal reporting structure and strategic plan the secondary format is for geographical areas transactions 
between segments are conducted on an arm’s length basis segment results show the contribution directly attributable to 
each segment in arriving at the group’s operating profit segment assets and liabilities comprise those assets and liabilities 
directly attributable to each segment group eliminations represent such consolidation adjustments that are necessary to 
determine the group’s assets and liabilities 
vi intangible assets
a goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value 
of the identifiable assets liabilities and contingent liabilities of a subsidiary associate or jointlycontrolled entity at the date of 
acquisition goodwill is recognised as an asset and is tested for impairment annually or on such other occasions that events 
or changes in circumstances indicate that it might be impaired
on disposal of a subsidiary undertaking the attributable amount of unamortised goodwill which has not been subject to 
impairment is included in the determination of the profit or loss on disposal
b other intangible assets are stated at cost less accumulated amortisation and impairment losses 
the cost of intangible assets is amortised over their expected useful lives these intangibles relate primarily to framework 
agreements and are amortised over the lives of the agreements
vii property plant and equipment  
property plant and equipment are recorded at cost less provision for impairment if required  
depreciation is provided on all property plant and equipment other than freehold land provision is made at rates calculated 
to write off the cost of each asset less estimated residual value evenly over its expected useful life as follows
 group occupied property 
freehold land      – no depreciation charge 
long leasehold land and buildings  – shorter of fifty years and period of lease  
 plant and vehicles   – three to ten years  
office equipment    – two to seven years 
1rnwhar09backindd   19 14122009   173358 renew holdings plc annual report  accounts 2009 45
1 accounting policies continued
viii impairments
goodwill arising on acquisitions and other assets that have an indefinite useful life and are therefore not subject to 
amortisation are reviewed at least annually for impairment other intangible assets and property plant and equipment are 
reviewed for impairment whenever there is any indication that the carrying amount of the asset may not be recoverable if the 
recoverable amount of any asset is less than its carrying amount a loss on impairment is recognised recoverable amount is 
the higher of the fair value of the asset less any costs which would be incurred in selling the asset and its value in use value 
in use is assessed by discounting the estimated future cash flows that the asset is expected to generate for this purpose 
assets are grouped into cash generating units which represent the lowest level for which there are separately identifiable 
cash flows impairment losses in respect of goodwill are not reversed in future accounting periods reversals of other 
impairment losses are recognised in income when they arise 
ix inventories
inventories comprise developments land held for development and raw materials and are stated at the lower of cost and 
net realisable value cost includes appropriate attributable overheads and excludes interest where necessary provision 
is made for obsolete slow moving and defective inventories     
x trade receivables   
trade receivables do not carry any interest and are initially recognised at their fair value and then at amortised cost 
xi trade payables    
trade payables on normal terms are not interest bearing and are initially recognised at their fair value and then at amortised cost
xii cash and cash equivalents  
cash and cash equivalents in the cash flow statement comprise cash at bank and in hand including bank deposits with 
original maturities of less than three months net of bank overdrafts
bank overdrafts are included within borrowings within current liabilities in the balance sheet   
xiii provisions    
provisions are recognised when the group has a present legal or constructive obligation as a result of a past event and 
where it is probable that an outflow will be required to settle that obligation and where the amount can be reliably estimated
xiv leasing commitments   
assets held under finance leases where substantially all the benefits and risks of ownership of an asset have been 
transferred to the group are capitalised and are depreciated in accordance with the depreciation policy for the relevant 
class of asset or the lease term if shorter the interest element of the rental obligation is charged to the income statement 
and represents a constant proportion of the balance of capital repayments outstanding rentals under operating leases are 
charged to the income statement on a straightline basis over the term of the lease    
xv defined benefit pension scheme  
the pension scheme assets are measured using market values pension scheme liabilities are measured using the projected 
unit actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and 
currency to the liability any increase in the present value of liabilities within the group’s defined benefit scheme expected to 
arise from employee service in the period is charged to operating profit the expected return on the scheme’s assets and the 
increase during the period in the present value of the scheme’s liabilities arising from the passage of time are included in other 
finance income actuarial gains and losses are recognised in the group statement of total recognised income and expense
pension scheme surpluses to the extent they are considered recoverable or deficits are recognised in full and presented 
on the face of the balance sheet
xvi defined contribution pension plans
contributions to the group’s stakeholder pension plans are charged to the income statement as incurred 
1rnwhar09backindd   20 14122009   173358 renew holdings plc annual report  accounts 2009 46
notes to the accounts continued
1 accounting policies continued
xvii taxation 
the tax charge is composed of current tax and deferred tax calculated using tax rates that have been enacted or 
substantively enacted by the balance sheet date current tax and deferred tax are charged or credited to the income 
statement except when they relate to items charged or credited directly to equity in which case the relevant tax is also 
dealt with in equity current tax is based on the profit for the year deferred tax is provided in full using the liability method 
on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial 
statements deferred tax on such assets and liabilities is not recognised if the temporary difference arises from the initial 
recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the 
taxable profit nor the accounting profit deferred tax assets are recognised to the extent that it is probable that future taxable 
profit will be available against which the temporary differences can be utilised the carrying amount of deferred tax assets 
is reviewed at each balance sheet date 
deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the 
group intends to settle its current assets and liabilities on a net basis 
xviii foreign currencies 
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction monetary assets and liabilities 
denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date the income 
statements of overseas subsidiary undertakings are translated at the average rate of exchange ruling throughout the financial 
year the balance sheets of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance 
sheet date exchange differences arising from this policy and arising on the retranslation of the opening net assets is taken 
directly to equity all other exchange differences are taken to the income statement
xix financial instruments 
financial assets are divided into the following categories trade receivables and financial assets at fair value the board 
assigns financial assets to each category on initial recognition dependant on the purpose for which the asset was acquired 
the categorisation of these assets is reconsidered at each reporting date at which a choice of categorisation or accounting 
treatment is available all financial assets are recognised whenever the group becomes party to the contractual provisions 
of the financial instrument all such assets are initially recognised at fair value derecognition of such assets occurs when 
the group’s right to receive cash flows from the asset ceases or the rights and rewards of ownership have been transferred 
all such assets are reviewed for impairment at least annually interest and other cash flows which arise from holding a 
financial asset are recognised in the income statement in accordance with ias 39 financial assets at fair value include assets 
classified as held for trading and changes in fair value are recognised through the income statement trade receivables are 
nonderivative financial assets with expected receipts which are not quoted in an active market and they arise when the 
group provides goods or services 
a financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired 
a financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative 
effect on the estimated future cash flows of that asset an impairment loss in respect of a financial asset measured at amortised 
cost is calculated as the difference between its carrying amount and the present value of the estimated cash flows discounted 
at the original effective interest rate all impairment losses are recognised in the income statement 
financial liabilities are recognised when the group becomes a party to the contractual provisions of the financial instrument 
all interest related charges are recognised as an expense in the income statement bank loans and hire purchase liabilities 
are entered into to provide financing for the group’s operations and are recognised as funds are received financial liabilities 
are measured at amortised cost
xx share based payments
ifrs 2 “share based payment” requires a fair value to be established for any equity settled share based payments fair 
value has been independently measured using a blackscholes valuation model the fair value determined at the grant date 
of the equity settled share based payments is expensed on a straightline basis over the vesting period based on the group’s 
estimate of shares that will eventually vest
1rnwhar09backindd   21 14122009   173358 renew holdings plc annual report  accounts 2009 47
1 accounting policies continued
xxi earnings per share
the group presents basic and diluted earnings per share eps data for its ordinary shares basic eps is calculated by 
dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average number of ordinary 
shares outstanding in the period diluted eps is determined by adjusting the profit or loss attributable to ordinary shareholders 
and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares 
which comprise share options granted to employees
xxii rental income
rental income from property is recognised in the income statement on a straightline basis over the term of the lease lease 
incentives granted are recognised as an integral part of the total rental income over the term of the lease
xxiii finance income and expense
finance income comprises interest income on funds invested and gains on hedging instruments that are recognised in 
income or expense interest income is recognised as it accrues in income or expense using the effective interest method 
finance expenses comprise interest expense on borrowings unwinding of the discount on provisions and losses on hedging 
instruments that are recognised in income or expense all borrowing costs are recognised in income or expense using the 
effective interest method
2 segmental analysis
for management purposes the group is organised into three operating divisions building engineering and property  
central activities the three operating segments are the basis on which the group reports its primary segment information
segment information about the group’s continuing operations is presented below
a business analysis 
revenue is analysed as follows
       2008 
      2009 restated 
      £000 £000
building      202358 287044
engineering      114779 100795
property  central activities      535 8213
inter divisional revenue      1024 5495
       
group revenue from continuing operations     316648 390557
       
analysis	of	operating	profit
  before   before  
  exceptional exceptional  exceptional exceptional  
  items and items and  items and items and  
  amortisation amortisation  amortisation amortisation  
  of intangible of intangible  of intangible of intangible  
   assets assets  assets assets  
  2009 2009 2009 2008 2008 2008 
  £000 £000 £000 £000 £000 £000
building  2525 2300 225 4892 889 4003
engineering  4008 1446 2562 3469 361 3108
property  central activities  1946 629 2575 761 1515 2276
       
operating	profit  4587 4375 212 7600 2765 4835
net financing income  958 — 958 1907 — 1907
       
profit	on	ordinary	activities	 
before income tax  5545 4375 1170 9507 2765 6742
       
1rnwhar09backindd   22 14122009   173358 renew holdings plc annual report  accounts 2009 48
notes to the accounts continued
2 segmental analysis continued
balance sheet analysis of business segments
  2009  2008 restated
  assets liabilities net assets assets liabilities net assets 
     restated restated restated 
  £000 £000 £000 £000 £000 £000
building  120832 139361 18529 151386 165477 14091
engineering  44440 37096 7344 36738 30556 6182
property  central activities  263520 241006 22514 234959 212769 22190
group eliminations  319057 319057 — 282466 282466 —
       
group net assets  109735 98406 11329 140617 126336 14281
       
other information
  2009  2008
  capital   capital  
  additions depreciation amortisation additions depreciation amortisation 
  £000 £000 £000 £000 £000 £000
building  106 345 — 436 372 —
engineering  796 1104 — 1568 1302 —
property  central activities  704 48 309 24 34 248
       
  1606 1497 309 2028 1708 248
       
b geographical analysis
revenue is analysed as follows 
      2009 2008 
      £000 £000
uk      316127 384485
usa      521 6072
       
group revenue from continuing operations     316648 390557
       
balance sheet analysis of geographical segments
      assets assets 
      £000 £000
uk      97687 128675
usa      12048 11942
       
group assets      109735 140617
       
other information
      capital capital 
      additions additions 
      £000 £000
uk      1606 2028
usa      — —
       
      1606 2028
       
  the board has reclassified the rail infrastructure activities from specialist building to specialist engineering as this reflects better the nature of 
work carried out consequently specialist building’s revenue has been reduced in the 2008 comparative by £75m with a corresponding increase 
in specialist engineering gross assets of £59m and gross liabilities of £58m have also been reclassified the reclassification has had no impact 
on segmental operating profit or other information
1rnwhar09backindd   23 14122009   173358 renew holdings plc annual report  accounts 2009 49
3 operating profit 
      2009 2008 
      £000 £000
operating	profit	is	arrived	at	after	chargingcrediting	  
auditors’ remuneration – audit services       180 170
depreciation of owned assets      1285 1429
depreciation of assets held under finance leases     212 279
operating lease rentals – plant and machinery     18 29
operating lease rentals – motor vehicles      360 408
operating lease rentals – other      2905 2880
rental income      1471 1275
profit on sale of property plant and equipment     71 262
foreign exchange gains      2 332
       
during the period the following services were provided by the group’s auditor
      2009 2008 
      £000 £000
fees payable to the company’s auditor for the audit of the financial statements   60 60
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  120 110
other services related to ifrs conversion     — 27
other services related to employment matters     36 121
       
      216 318
       
cost of sales includes £nil 2008 £20m of inventories recognised as an expense in the period there were no writedowns 
or reversal of writedowns of inventories recognised as an expense in the period 2008 £nil
exceptional items and amortisation of intangible assets
      2009 2008 
      £000 £000
redundancy and restructuring costs      2566 1471
legacy contract settlement      1000 —
provision for office of fair trading fine see note 18     500  —
costs in relation to bbea pension scheme see note 18    — 1168
profit on disposal of plant fleet      — 122
       
total exceptional items      4066 2517
amortisation of intangible assets see note 9     309 248
       
      4375 2765
       
the board has determined that certain charges to the income statement should be separately identified for better understanding 
of the group’s results for the year ended 30 september 2009
following the deterioration in market conditions faced by certain of the group’s companies the group decided to reduce its 
cost base in its building business and to realign the activities of one of its engineering businesses as a result the group has 
incurred redundancy and restructuring costs of £2566000 2008 £1471000 associated with the realignment the group 
disposed of a noncore activity on 24 september 2009 and the losses incurred during the year by that activity of £130000 
have been included within the redundancy and restructuring costs
additionally a charge of £1000000 was incurred in respect of a final account settlement on the last of the basket of legacy 
construction contracts which were originally provided against in 2005
the group has provided for a fine of £500000 in connection with the decision of the office of fair trading following its 
investigation into tender activities within the construction sector the related offences occurred in 2003 and 2004 in part 
of the group which has been closed
further details of this matter are set out in notes 18 and 24
the board has also separately identified the charge of £309000 2008 £248000 for the amortisation of the fair value 
ascribed to certain intangible assets other than goodwill arising from the acquisitions of seymour cec holdings limited 
and ca pumps limited further details are given in note 9
1rnwhar09backindd   24 14122009   173358 renew holdings plc annual report  accounts 2009 50
notes to the accounts continued
4 finance costs 
      2009 2008 
      £000 £000
interest payable       
on bank loans and overdrafts      13 223
other interest payable      33 31
       
      46 254
       
other	finance	income	–	defined	benefit	pension	scheme     
expected return on scheme assets      6919 6957
interest on scheme liabilities      6854 6414
       
      65 543
       
further information on the defined benefit pension scheme is set out in note 25 to the accounts
5 employee numbers and remuneration
      2009 2008 
      number number
       
the average monthly number of employees including executive directors  
employed in continuing activities during the year was     1274 1441
       
at 30 september      1191 1378
       
production      714 736
administrative      560 705
       
      1274 1441
       
cost of staff including executive directors during the year amounted to
      £000 £000
wages and salaries      46762 57056
social security costs      4901 6286
other pension costs      1553 1819
share based payments      71 136
       
      53145 65297
       
details of individual directors’ emoluments and pension contributions can be found in the directors’ remuneration report on 
page 32 these numbers have been audited
6 income tax expense
a analysis of expense in year
      2009 2008 
      £000 £000
current tax       
uk corporation tax on profits of the year      — 159
adjustments in respect of previous periods     32 409
       
      32 568
foreign tax      — 51
       
total current tax      32 619
       
deferred tax – defined benefit pension scheme     566 699
deferred tax – other timing differences      194 164
       
total deferred tax       760 863
       
income tax expense      792 1482
       
1rnwhar09backindd   25 14122009   173358 renew holdings plc annual report  accounts 2009 51
6 income tax expense continued
b factors affecting income tax expense for the year
      2009 2008 
      £000 £000
profit before income tax      1170 6742
       
profit multiplied by standard rate       
of corporation tax in the uk of 28 2008 29     328 1955
effects of      
expenses not deductible for tax purposes     263 187
timing differences not provided in deferred tax     1371 408
benefit of tax losses      96 —
losses not recognised as an asset      1636  —
losses utilised not previously recognised      — 1480
change in tax rate      — 48
foreign tax       — 51
adjustments to tax charge in respect of previous periods    32 409
       
      792 1482
       
the group has available further unused uk tax losses of £76m 2008 £89m to carry forward against future taxable profits
the group also has unused usa tax losses of 28m £175m 2008 27m £15m to carry forward against future taxable 
profits in the usa a substantial element of these losses relates to activities which are not forecast to generate the level of 
profits needed to utilise these losses a deferred tax asset has been provided to the extent considered reasonable by the 
directors where recovery is expected to be recognisable within the foreseeable future the unrecognised deferred tax asset 
in respect of these losses amounts to £26m 2008 £29m
c deferred tax asset
      2009 2008 
      £000 £000
defined benefit pension scheme      658 414
accelerated capital allowances      418 —
other timing differences      166 191
future tax losses      2855 3464
       
      4097 4069
       
d deferred tax liabilities
      2009 2008 
      £000 £000
accelerated capital allowances       — 9
fair value adjustments      233 247
       
      233 256
       
e reconciliation of deferred tax asset
      2009 2008 
      £000 £000
as at 1 october      4069 4987
origination of timing differences      217 335
defined benefit pension scheme – income statement     566 699
defined benefit pension scheme – sorie     811 116
       
at 30 september      4097 4069
       
f reconciliation of deferred tax liability
      2009 2008 
      £000 £000
as at 1 october      256 418
accelerated capital allowances      9 81
arising on fair value adjustments      14 81
       
at 30 september      233 256
       
1rnwhar09backindd   26 14122009   173358 renew holdings plc annual report  accounts 2009 52
notes to the accounts continued
7 dividends
      2009 2008 
      penceshare penceshare
interim related to the year ended 30 september 2009    100 100
final related to the year ended 30 september 2008     200 120
       
total dividend paid      300 220
       
       
      £000 £000
interim related to the year ended 30 september 2009    598 598
final related to the year ended 30 september 2008     1199 719
       
total dividend paid      1797 1317
       
dividends are recorded only when authorised and are shown as a movement in equity rather than as a charge in the income 
statement the directors are proposing that a final dividend of 20p per ordinary share be paid in respect of the year ended 
30 september 2009 this will be accounted for in the 200910 financial year
8 earnings per share
  2009  2008
  earnings eps deps earnings eps deps 
  £000 pence pence £000 pence pence
earnings before exceptional costs  3668 612 598 7298 1218 1187
exceptional costs and amortisation  3290 549 536 2038 340 332
       
basic earnings per share  378 063 062 5260 878 855
       
weighted average number of shares   59899 61352  59899 61497
       
the dilutive effect of share options is to increase the number of shares by 1453000 2008 1598000 and reduce basic 
earnings per share by 001p 2008 023p
9 intangible assets
       contractual 
      goodwill rights 
      £000 £000
cost       
at 1 october 2007      8516 909
additions      32 —
       
at 1 october 2008       8548 909
additions      1010 163
       
at 30 september 2009      9558 1072
       
impairment lossesamortisation       
at 1 october 2007      — 41
charge for year      — 248
       
at 1 october 2008       — 289
charge for year      — 309
       
at 30 september 2009      — 598
       
carrying amount       
at 30 september 2009      9558 474
       
at 30 september 2008      8548 620
       
at 1 october 2007      8516 868
       
1rnwhar09backindd   27 14122009   173359 renew holdings plc annual report  accounts 2009 53
9 intangible assets continued
the carrying amounts of goodwill by business segment are as follows
      2009 2008 
      £000 £000
building      2503 2503
engineering      7055 6045
       
      9558 8548
       
goodwill of £803000 was acquired on the acquisition of ca pumps limited and has been reviewed for impairment 
one year after the acquisition as required by ifrs 3 no impairment has been identified goodwill of £207000 acquired 
on the acquisition of mothersill engineering will be reviewed for impairment one year after acquisition see note 27
amortisation charges in respect of intangible assets with a finite life are recorded within administrative expenses in the 
income statement the amortisation policy is disclosed in the accounting policies and approximates to a period of four years 
in order to test goodwill for impairment the group performs value in use calculations by preparing cash flow forecasts for 
each cash generating unit derived from the most recent financial budgets and strategic plans approved by management 
going forward three years and then extrapolates cash flows based on conservative estimated growth rates according 
to management’s view of longer term prospects for each cash generating unit for a further two years the cash generating 
units are deemed to be the subsidiaries to which the goodwill relates the growth rate used at 30 september 2009 was 
3 this rate does not exceed the average longterm growth rate for the construction industry or gross domestic product 
the rate used to discount the forecast cash flows is 8 as the board considers that rate appropriate in the current financial 
market as an approximation to the cost of funds to the group the calculation shows that there is substantial headroom 
and the impairment calculations are not particularly sensitive to changes in the discount rate applied
10 property plant and equipment
     long 
    freehold leasehold plant 
    land and  land and vehicles and 
    buildings buildings  equipment total 
    £000 £000 £000 £000
cost       
at 1 october 2007    500 789 6527 7816
additions    — — 2028 2028
disposals    — — 3735 3735
       
at 1 october 2008    500 789 4820 6109
additions    701 — 905 1606
disposals    — — 1164 1164
acquisition of subsidiaries    620 — 463 1083
       
at 30 september 2009    1821 789 5024 7634
       
depreciation       
at 1 october 2007    — 650 1978 2628
charge for year    — 5 1703 1708
disposals    — — 2730 2730
       
at 1 october 2008    — 655 951 1606
charge for year    18 5 1474 1497
disposals    — — 837 837
       
at 30 september 2009    18 660 1588 2266
       
net book value       
at 30 september 2009    1803 129 3436 5368
       
at 30 september 2008    500 134 3869 4503
       
at 30 september 2007    500 139 4549 5188
       
the net book value of assets under finance leases at 30 september 2009 was £296000 2008 £460000 during the year 
£212000 2008 £279000 of depreciation was charged against assets held under finance leases
1rnwhar09backindd   28 14122009   173359 renew holdings plc annual report  accounts 2009 54
notes to the accounts continued
11 inventories 
      2009 2008 
      £000 £000
developments and undeveloped land      7905 6231
raw materials      177 136
       
      8082 6367
       
£05m 2008 £04m of inventories are pledged as security for liabilities     
12 trade and other receivables       
      2009 2008 
      £000 £000
trade receivables      417 346
amounts due from construction contract customers     59522 80044
other receivables      5766 5943
prepayments and accrued income      1544 1433
       
      67249 87766
       
the directors consider that the carrying amount of trade and other receivables approximates to their fair value included in 
trade and other receivables are debtors with a carrying value of £98m 2008 £78m which are past due at the reporting date 
for which the group has not provided as there has not been a significant change in credit quality and the group believes that 
the amounts are still considered recoverable since there is no objective evidence that these financial assets are impaired 
the group does not hold any collateral over these balances
the average age of these receivables is 301 days 2008 341 days
ageing of past due but not impaired receivables
      2009 2008 
      £000 £000
30–180 days      3786 1502
180–365 days      1637 2247
greater than 1 year      4328 4013
       
      9751 7762
       
13 construction contracts      
      2009 2008 
      £000 £000
contracts in progress at balance sheet date 
amounts due from construction contract customers included in trade and other receivables  59522 80044
amounts due to construction contract customers included in trade and other payables  8501 15082
       
      51021 64962
       
contract costs incurred plus recognised profits less recognised losses to date   2923646 3303391
less progress billings      2872625 3238429
       
      51021 64962
       
at 30 september 2009 retentions held by customers amounted to £151m 2008 £170m advances received from 
customers for contract work amounted to £85m 2008 £151m
amounts due from construction contract customers which are past due at the reporting date amounted to £98m 2008 £78m 
this amount includes retention balances of £34m 2008 £45m the group does not hold any collateral over these 
balances or other trade and other receivables 
contract revenue recognised in the year amounted to £3161m 2008 £3823m
1rnwhar09backindd   29 14122009   173359 renew holdings plc annual report  accounts 2009 55
14 cash and cash equivalents
      2009 2008 
      £000 £000
cash at bank      14855 28281
cash in hand      8 8
       
      14863 28289
       
cash at bank includes £01m 2008 £nil in respect of the net position on a sterling bank deposit of £60m 2008 £20m 
and a connected us  loan of £59m us 95m 2008 £20m 35m translated at the year end rate used to hedge the 
intercompany balance with the us subsidiary company
15 trade and other payables
      2009 2008 
      £000 £000
amounts due to construction contract customers     8501 15082
trade payables      27533 35519
other taxation and social security      1767 2021
other payables      1335 1272
accruals and deferred income      54476 65352
       
      93612 119246
       
16 borrowings        
      2009 2008 
      £000 £000
bank loans and overdrafts       263 110
       
of the £263000 of bank loans and overdrafts £29000 is payable after more than one year 
17 obligations under finance leases
      present value of minimum  
    minimum lease payments  lease payments 
    2009 2008 2009 2008 
    £000 £000 £000 £000
amounts payable under finance leases        
within one year    23 73 21 67
within two to five years    6 11 6 10
       
    29 84 27 77
less future finance charges    2 7 — —
       
present value of lease obligations    27 77 27 77
       
less amount due for settlement within twelve months     21 67
       
amount due for settlement after twelve months     6 10
       
it is the group’s policy to lease certain of its plant and equipment under finance leases the average outstanding lease term 
is one year 2008 one year for the year ended 30 september 2009 the average effective borrowing rate was 7 2008 7 
interest rates are fixed at the contract date all leases are on a fixed repayment basis and no arrangement has been entered 
into for contingent rental payments 
all lease obligations are denominated in sterling the fair value of the group’s lease obligations approximates to their 
carrying amount the group’s obligations under finance leases are secured on the asset to which the lease relates
1rnwhar09backindd   30 14122009   173359 renew holdings plc annual report  accounts 2009 56
notes to the accounts continued
18 provisions     
     property   
     obligations other total 
     £000 £000 £000
at 1 october 2008     1757 3252 5009
provision increase during year     — 500 500
provision decrease during year     458 3252 3710
       
at 30 september 2009     1299 500 1799
       
noncurrent liabilities     680 — 680
current liabilities     619 500 1119
       
at 30 september 2009     1299 500 1799
       
property obligations represent commitments on leases for properties which the group does not occupy where the group 
does not expect to receive income sufficient to cover the full commitment the provision represents outflows which are 
expected to occur over the next five years the provision has decreased during the year as the group has been able to 
terminate a number of lease positions
the increase in other provisions in 2009 is in respect of the fine levied by the office of fair trading details of which are given 
in note 24 
in 2008 other provisions related to the debt on the employer liability arising from the winding up of the british building  engineering 
appliances plc pension scheme the winding up of the scheme commenced in 1999 and completed in the 2009 financial year 
the trustees who are independent of the group determined the level of the statutory debt on the employer in conjunction 
with the independent scheme actuary the debt together with related legal costs has been discharged in full in line with the 
amount provided during the year
19 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 receivables and trade payables that arise directly from its operations 
the group also uses foreign currency borrowings to hedge certain of the currency risks arising from the group’s overseas 
operations it is and has been throughout the period under review the group’s policy that no trading in financial instruments 
shall be undertaken the disclosures below provide information about the contractual terms of the group’s interest bearing 
deposits loans and borrowings
interest	rate	profile	of	financial	assets	and	liabilities
    
fixed rate
 financial assetsliabilities 
    weighted  
    average fixed  floating  
    interest rate rate rate total 
      £000 £000 £000
2009       
assets       
sterling    — — 20857 20857
dollar    — — 29 29
       
     — 20886 20886
       
liabilities       
sterling    70 27 134 161
dollar    — — 6070 6070
       
     27 6204 6231
       
1rnwhar09backindd   31 14122009   173359 renew holdings plc annual report  accounts 2009 57
19 other financial instruments continued
       
    
fixed rate
 financial assetsliabilities 
    weighted  
    average fixed  floating  
    interest rate rate rate total 
      £000 £000 £000
2008       
assets       
sterling    — — 29484 29484
dollar    — — 794 794
       
     — 30278 30278
       
liabilities       
sterling    70 77 — 77
dollar    — — 2099 2099
       
     77 2099 2176
       
the interest bearing assets accrue interest at prevailing market rates generally the group holds deposits which are 
repayable on demand
the sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or libor certain 
us interest bearing liabilities accrue interest at a rate which is linked to the lender’s us prime rate
the maturity of the fixed rate financial liabilities is disclosed in note 17 the fixed rate liabilities have a weighted average 
period of one year 2008 one year the dollar floating rate liabilities are repayable on demand
f air	value	of	financial	assets	and	liabilities
there are no material differences between fair value and the book value of the group’s financial assets and liabilities
financial risks
the group has exposure to a number of financial risks through the conduct of its operations risk management is governed 
by the group’s operational policies guidelines and authorisation procedures which are outlined in the corporate governance 
statement the key financial risks resulting from financial instruments are credit liquidity currency and market risk
a credit risk
credit risk is the risk of loss if a customer fails to meet its financial obligations and results primarily from the group’s trade 
and other receivables the degree to which the group is exposed to this risk depends on the individual financial situation 
of each specific customer the group does not have any risk arising from a concentration of trade or other receivables in 
any customer or group of customers the group assesses the credit worthiness of every customer prior to entering into 
any contract and requires appropriate evidence of financial capability on a case by case basis the group reviews trade 
and other receivables for impairment on a regular basis and information relating to the ageing of receivables is provided 
in note 12 
b liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the board is 
responsible for ensuring that the group has sufficient liquidity to meet its financial liabilities as they fall due and does 
so by monitoring cash flow forecasts and budgets the board has considered the cash flow forecasts for the next twelve months 
which show that the group is expected to maintain positive cash balances throughout the year 
the board aims to maintain a strong capital base so as to ensure investor and market confidence and to sustain the 
future of the business the capital structure of the group consists of equity attributable to equity holders of the company 
as disclosed in note 20 and reserves as disclosed in note 21 the group arranges shortterm overdraft facilities and hire 
purchase facilities as the board deems necessary the group does not have any derivative or nonderivative financial liabilities 
other than those disclosed in notes 15 to 17 and the retirement benefit obligations disclosed in note 25 an analysis of the 
maturity profile for finance lease liabilities is given in note 17
1rnwhar09backindd   32 14122009   173359 renew holdings plc annual report  accounts 2009 58
notes to the accounts continued
19 other financial instruments
c currency risk
the only exposure of the group to currency risk ie exposure to gains or losses on foreign exchange which would 
be recognised in the income statement is in respect of the us dollar bank account which is maintained by the parent 
company in the uk and the unhedged portion of an intercompany loan at 30 september 2009 the unhedged portion of 
the intercompany loan was nil 2008 4934000 at 30 september 2009 the balance on the us dollar bank account 
was 1000 2008 1000 the dollar closing exchange rate was 160 £1 2008 178 £1 resulting in a foreign exchange 
gain of £2000 being credited to the income statement on the unhedged assets consequently to the extent that the intercompany 
loan is not fully hedged the income statement may be impacted by exchange rate movements
exchange rate movement on translation of lovell america inc’s net assets are charged to the cumulative translation 
adjustment within total equity the exchange gain arising on the translation of lovell america inc’s net assets was £612000 
the total equity statement will be impacted by £38000 for each  cent movement in exchange rates
all functional currencies of the group operations are denominated in sterling with the exception of the us operations whose 
functional currency is the us dollar
the company has a loan of 9500000 2008 3537000 which acts as an economic hedge against the intercompany 
balance due by lovell america inc exchange losses of £551000 2008 loss £317000 were made during the year on 
foreign currency borrowings this has been fully offset against exchange gains made on the intercompany balance due 
by lovell america inc 
d market risk
market risk is the risk that changes in market prices will affect the group’s income or the carrying amount of its holding of 
financial instruments the principal risk relates to interest rates where the group’s risk is limited to the rates applying to its 
interest bearing shortterm deposits a reduction in market interest rates could lead to a reduction in the group’s interest 
income consequently a 1 decrease in market interest rates would reduce finance income by £10000 for every £1m held 
on deposit for one year
the market risk associated with financial liabilities is limited to the interest rate on the group’s us dollar overdraft and loans 
a 1 increase in interest rates would lead to an increase in the group’s interest expense of about £59000 subject to foreign 
exchange rate movements on the assumption of a us95m loan being outstanding for one year
the group’s hire purchase financial liabilities are all at fixed rates of interest
there have been no changes in the nature of the risks arising from financial instruments in either the current or previous 
financial year 
20 share capital
      2009 2008 
      £000 £000
authorised        
100000000 2008 100000000 ordinary shares of 10p each    10000 10000
       
allotted called up and fully paid       
       
59898927 2008 59898927 ordinary shares of 10p each    5990 5990
       
the holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote 
per share at meetings of the company
there were no ordinary shares issued in either year ending september 2009 or 2008
1rnwhar09backindd   33 14122009   173359 renew holdings plc annual report  accounts 2009 59
20 share capital continued
share options
the group operates a share option scheme the renew holdings 2004 executive share option scheme the scheme 
has both an approved and unapproved element the difference between the two elements is that the approved scheme 
has the advantage of certain hmrc approved tax benefits 
both elements have the same general terms and conditions options issued under the scheme must be held for three years 
before they can vest and become exercisable they must be exercised within ten years from the date of grant 
vesting of options is dependant on the achievement of certain performance criteria which are established by the 
remuneration committee at the point of grant 761904 of the options granted in the 2006 financial year have vested 
in respect of the options granted during the 2007 and 2008 financial years the board has determined that it is unlikely 
that the performance criteria will be met and so 940252 of previously granted options are no longer expected to be 
exercised in respect of the options granted during the 2009 financial year 25 of the options will vest if the group’s 
earnings per share for the year ending 30 september 2011 exceed 9p for 100 vesting to occur the group’s earnings 
per share for the year ending 30 september 2011 must be at least 135p
the scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then 
the options will lapse
the number of options in issue and their exercise price is given in note 21
21 reserves
   share capital cumulative share based  
   premium  redemption translation payments retained 
   account reserve reserve reserve earnings 
   £000 £000 £000 £000 £000
group        
at 1 october 2007   5893 3896 150 97 5717
transfer from income statement for the year      5260
dividends paid       1317
recognition of share based payments      136 
exchange differences     574  
actuarial loss recognised in pension scheme      497
movement on deferred tax relating to the pension scheme     116
       
at 1 october 2008   5893 3896 424 233 2155
transfer from income statement for the year      378
dividends paid       1797
recognition of share based payments      71 
exchange differences     622  
actuarial loss recognised in pension scheme      2895
movement on deferred tax relating to the pension scheme     811
       
at 30 september 2009   5893 3896 1046 162 5658
       
there is no available analysis of goodwill written off against reserves in respect of existing subsidiaries that were acquired 
prior to 1989 and therefore in accordance with the guidance of ifrs 3 the directors are not able to state this figure 
1rnwhar09backindd   34 14122009   173359 renew holdings plc annual report  accounts 2009 60
notes to the accounts continued
21 reserves continued
share based payments reserve
ifrs 2 “share based payment” requires a fair value to be established for any equity settled share based payments 
fair value has been independently measured by baker tilly chartered accountants using a blackscholes valuation model 
the fair value determined at the grant date of the equity settled share based payments is expensed on a straightline basis 
over the vesting period based on the group’s estimate of shares that will eventually vest
£71000 has been credited 2008 charged £136000 to administrative expenses as a result of the board’s expectation that 
940252 of previously granted options will not vest
there is no impact on net assets since an equivalent amount has been charged against the share based payments reserve
no options were exercised or lapsed during the year
the value per option represents the fair value of the option less the consideration payable
the expected volatility is based on historical volatility of the share price since the company listed on aim in 2001
the risk free rate of return has been derived from the bank of england’s yield curve taking the spot rate for a maturity 
of 36 months this period has been selected as being the minimum period over which the options could remain extant
options granted under the renew holdings 2004 executive share option scheme over the company’s ordinary shares 
at 30 september 2009 were as follows
   7 june  8 january 3 december 26 november 
date of grant   2006 2007 2007  2008 total
awards outstanding at 30 september 2009       
– directors   761904 522292 417960 829403 2531559
exercise price and price at date of grant   525p 785p 1030p 545p —
maximum option life   10 years 10 years 10 years 10 years —
assumed option life for purposes of valuation  3 years 3 years 3 years 3 years —
expected volatility   47 46 40 41 —
dividend yield   1 150 180 590 —
risk free interest rate   467 488 446 385 —
value per option   205p 259p 280p 102p —
       
the options granted on 7 june 2006 have vested in full the board does not expect the options granted on 8 january 2007 
and 3 december 2007 to vest there were 1702156 options outstanding at 1 october 2008 being those issued in june 2006 
january 2007 and december 2007 as detailed above 
22 reconciliation of movements in total equity
      2009 2008 
      £000 £000
profit for the year      378 5260
dividends paid      1797 1317
       
      1419 3943
other recognised gains and losses for the year     1462 193
recognition of share based payments      71 136
       
net movement in total equity      2952 4272
at 1 october 2008      14281 10009
       
at 30 september 2009       11329 14281
       
1rnwhar09backindd   35 14122009   173359 renew holdings plc annual report  accounts 2009 61
23 capital and leasing commitments
    land and  total total 
    buildings other 2009 2008 
    £000 £000 £000 £000
commitments under noncancellable operating leases
under one year    2623 329 2952 3030
two to five years    8738 186 8924 9347
five or more years    22593 — 22593 23661
       
    33954 515 34469 36038
       
with regard to the operating leases held by the group as lessor the group recognised £1471000 2008 £1275000 of 
rental income in the income statement for 2009 relating to subletting of surplus premises the future minimum sublease 
receipts expected to be received under noncancellable operating leases are as follows
    land and  total total 
    buildings other 2009 2008 
    £000 £000 £000 £000
receivables under noncancellable operating leases
under one year    1184 — 1184 1239
two to five years    3060 — 3060 4001
five or more years    404 — 404 2541
       
    4648 — 4648 7781
       
the group had no capital commitments at 30 september 2009 2008 £nil
24 contingent liabilities
office	of	f air	t rading	investigation
the company has received the decision from the office of fair trading “oft” following its investigation into tender activities 
within the construction sector
in 2007 the company announced that allenbuild one of its subsidiaries had been contacted by the oft in relation to some 
historic contract tenders renew and allenbuild have cooperated fully with the oft throughout its investigation
under the oft’s fast track offer allenbuild made two admissions of participation in cover pricing activities in respect of 
two tenders which occurred in 2003 and 2004 in the now closed midlands office of allenbuild no employees connected 
with the infringements remain with the group prior to the oft investigation the board of renew was unaware of these 
infringements which took place prior to the appointment of the current group executive directors
immediately following the commencement of the oft investigation renew introduced reinforced groupwide tendering 
procedures these guidelines and controls are in place to ensure that all subsidiaries comply with competition laws compliance 
with these procedures is audited on a regular basis the practice of cover pricing is not regarded as acceptable within the 
renew group of companies
the oft’s decision was that a fine of £05m will be levied on allenbuild and that a fine of £30m will be levied on bullock 
construction limited “bullock” bullock is a former subsidiary of renew which was sold in september 2005 to a company 
controlled by bullock’s management the bullock offence occurred in 2000 the oft holds that renew holdings plc is jointly 
and severally liable for both of these fines but leaves the determination of apportionment of liability to the parties themselves
the board of renew was totally unaware of the circumstances surrounding the bullock infringement as there are no records 
remaining within the group following the sale of bullock
having taken legal advice renew has appealed against the oft’s decision on a number of counts in respect of the bullock fine 
taking into account the specific facts concerning the matter the board believes that renew has no liability and has appealed 
on that ground amongst others accordingly in these results the group has provided a sum of £05m as an exceptional charge 
in respect of the allenbuild fine with no provision for the bullock fine were the company’s appeals against the bullock fine 
not to be upheld then the group may have a greater liability in respect of this matter
other
under the terms of the group’s banking agreement security over the group’s assets has been granted to the group’s bankers
a letter of credit of £nil 2008 £353000 remains outstanding at 30 september 2009 in respect of lovell america inc
1rnwhar09backindd   36 14122009   173359 renew holdings plc annual report  accounts 2009 62
notes to the accounts continued
25 employee benefits retirement benefit obligations
defined	benefit	pension	scheme
the defined benefit pension scheme was closed to new members in june 2000 on 1 august 2001 the board decided 
that no further benefits would accrue to existing members with more than five years expected service remaining these 
members were transferred to the defined contribution scheme but retained the benefits earned to date under the defined 
benefit pension scheme 
ias	19	“employee	benefits”
the directors have adopted the accounting required by ias 19 with effect from the transition date the directors have 
discussed the assumptions used in determining the actuarial valuations set out below with independent pensions advisors 
and have determined that they are appropriate
the following disclosures required by ias 19 have been based on the most recent actuarial valuation as at 30 september 2009 
carried out by barnett waddingham consulting actuaries using the following financial assumptions
     as at as at as at 
     30 september 30 september 30 september 
     2009 2008 2007
rate of increase in salaries     400 400 400
lpi increases to pensions in payment     310 310 290
discount rate     570 700 620
inflation assumption     310 350 290
increases in deferred pensions     310 310 290
       
the mortality tables adopted for the 2009 valuation are the continuing mortality investigations pna00 series with projected 
longevity improvements fully allowed for according to each member’s year of birth and with an additional allowance for future 
longevity improvements known as the medium cohort adjustment the assumptions include adjustments to these tables based 
upon a postal code analysis of the membership the directors believe that this analysis provides a more reliable estimate of 
the mortality characteristics of the scheme’s membership than has been used in previous years
in 2008 and previous years the pa1992 series tables were used a medium cohort adjustment was incorporated in 2008 
and a short cohort adjustment in 2007 an example of the effect of the changes in mortality assumption is that under the 
2009 assumptions a 60 year old male pensioner is forecast to live for a further 254 years compared to 268 years under 
the 2008 assumptions the 2007 assumptions estimated a period of of 26 years
the assets in the scheme and the expected rates of return were
  value as at  value as at  value as at  
  30 september expected 30 september expected 30 september expected 
  2009 rate of 2008 rate of 2007 rate 
  £000 return £000 return £000 of return
annuities  526  632  — 
gilts  25 fund  59583 660 50659 720 54914 750
bonds  51050 560 48190 700 47998 620
cash   102 005 39 450 36 575
     
total  111261  99520  102948 
     
1rnwhar09backindd   37 14122009   173359 renew holdings plc annual report  accounts 2009 63
25 employee benefits retirement benefit obligations continued
the following amounts at 30 september were measured in accordance with the requirements of ias 19
      2009 2008 
      £000 £000
movements in scheme assets and liabilities
total fair value of scheme assets brought forward     99520 102948
expected return on scheme assets      6919 6957
employer contributions      2028 2106
annuities      526 631
benefits paid      6280 6217
actuarial gainloss on scheme assets      8548 6905
       
total fair value of scheme assets carried forward     111261 99520
       
present value of scheme obligations brought forward     100999 106507
interest costs      6854 6414
current service costs      70 72
experience gain on scheme liabilities      — 600
annuities      526 631
benefits paid      6280 6217
actuarial increasedecrease in scheme obligations     11443 5808
       
total fair value of scheme obligations carried forward     113612 100999
       
deficit in the scheme      2351 1479
deferred tax      658 414
       
net deficit      1693 1065
       
amounts charged to operating profit
 current service cost       70 72
       
      70 72
       
amount credited to other financial income
 expected return on scheme assets      6919 6957
 interest on scheme liabilities      6854 6414
       
      65 543
       
amounts recognised in the statement of recognised income and expense
 actual less expected return on scheme assets     8548 6905
 experience gain on scheme liabilities     — 600
 effect of change in assumptions on scheme liabilities    11443 5808
       
 actuarial loss      2895 497
       
movement in the net scheme deficit during the year
 net scheme deficit brought forward      1479 3559
 current service cost       70 72
 cash contribution       2028 2106
 other finance income      65 543
 actuarial loss      2895 497
       
 net scheme deficit carried forward      2351 1479
       
1rnwhar09backindd   38 14122009   173359 renew holdings plc annual report  accounts 2009 64
notes to the accounts continued
25 employee benefits retirement benefit obligations continued
   2009 2008 2007 2006 2005
difference between the expected and actual return   
on scheme assets   £8548000 £6905000 £7960000 £1786000 £6623000
as a percentage of the assets at the end of the year  77 69 80 16 610
experience gainslosses on scheme liabilities  — £600000 £575000 £72000 £647000
as a percentage of the liabilities at the end of the year  — 059 054 000 061
t otal amount recognised in the statement of recognised  
income and expense   £2895000 £497000 £1804000 £7803000 £412000
as a percentage of the liabilities at the end of the year  255 049 169 693 039
       
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 ias 19 the group has taken advantage of the multiemployer exemption and the deficit of the scheme is 
accounted for as an unallocated consolidation adjustment
defined	contribution	pension	scheme
on 1 april 2008 the renew holdings pension scheme commenced winding up during the 2009 financial year the assets 
were transferred to individual stakeholder plans which the group established for scheme members
the group made contributions of £1553000 2008 £1819000 into these plans during the year there are also £181000 
2008 £182000 of accruals relating to these plans
26 related parties
the group has a related party relationship with its key management personnel who are the main board directors b may 
j samuel r harrison and j bishop whose total compensation amounted to £875000 all of which was represented by 
shortterm employment benefits
there were no other transactions with key management personnel in the year
1rnwhar09backindd   39 14122009   173400 renew holdings plc annual report  accounts 2009 65
27 acquisition of subsidiary undertakings
with effect from 1 october 2008 the company’s wholly owned subsidiary seymour civil engineering contractors limited 
acquired the whole of the issued share capital of ca pumps limited “ca” for a consideration of £176m all of which was 
paid in cash on 22 may 2009 the group acquired the trading assets and liabilities of mothersill engineering “mothersill” 
for a consideration of £043m all of which was paid in cash
the value of the assets and liabilities of ca and mothersill at the date of acquisition were
     book value adjustments fair value 
     £000 £000 £000
noncurrent assets
intangible assets – goodwill      1010 1010
intangible assets – other      163 163
property plant and equipment     987 96 1083
       
     987 1269 2256
       
current assets
inventories     136  136
trade and other receivables     646  646
       
     782  782
       
total assets     1769 1269 3038
       
noncurrent liabilities
deferred tax liabilities     23 27 50
obligations under finance leases     18  18
       
     41 27 68
       
current liabilities
borrowings     68  68
trade and other payables     664  664
current tax liabilities     10  10
obligations under finance leases     36  36
       
     778 — 778
       
total liabilities     819 27 846
       
net assets      950 1242 2192
       
goodwill of £1010000 was acquired on acquisition and will be reviewed for impairment one year after the acquisition as 
required by ifrs 3 the goodwill is attributable to the expertise and workforce of the acquired businesses other intangible 
assets of £163000 representing contractual rights of ca were also acquired and will be amortised over their useful 
economic life in accordance with ifrs 3
the value of land acquired with ca and included in tangible fixed assets has been increased from £524000 to £620000 
as a result of a fair value adjustment the land was independently valued by hanline associates chartered surveyors 
on 2 july 2008 on an existing use basis this valuation was reconfirmed by the same valuers as at 30 september 2009
1rnwhar09backindd   40 14122009   173400 renew holdings plc annual report  accounts 2009 66
at 30 september 2009
company balance sheet
      2009 2008 
     note £000 £000
fixed assets
tangible assets     e 842 186
investments     f 90525 90525
       
      91367 90711
       
current assets
stocks and work in progress     g 342 —
debtors due within one year     h 26353 21356
cash at bank and in hand     i 14065 18655
       
      40760 40011
creditors amounts falling due in less than one year   j 105174 109119
       
net current liabilities      64414 69108
       
total assets less current liabilities      26953 21603
       
net assets      26953 21603
       
capital and reserves
share capital     l 5990 5990
share premium account     m 5893 5893
capital redemption reserve     m 3896 3896
revaluation reserve     m 73 73
share based payments reserve     m 162 233
profit and loss account     m 10939 5518
       
equity shareholders’ funds     n 26953 21603
       
approved by the board and signed on its behalf by
r harrison obe
chairman
24 november 2009
1rnwhar09backindd   41 14122009   173400 renew holdings plc annual report  accounts 2009 67
notes to the company accounts
a accounting policies
i basis of accounting
the accounts have been prepared on the going concern basis and in accordance with uk applicable accounting standards 
under the historical cost convention
a summary of the more important company accounting policies which have been applied consistently is set out below
ii investments in subsidiaries
investments in subsidiaries are recorded at cost less provision for impairment
iii	t angible	fixed	assets
t angible fixed assets are recorded at cost or valuation for certain properties less provision for impairment if required depreciation 
is provided on all tangible fixed assets other than freehold land provision is made at rates calculated to write off the cost of 
each asset less estimated residual value evenly over its expected useful life as follows
freehold land  – no depreciation charge 
long leasehold land and buildings – shorter of fifty years and period of lease 
plant and vehicles – three to ten years 
office equipment – two to seven years
iv leasing commitments
rentals under operating leases are charged to the profit and loss account on a straightline basis over the term of the lease
v share based payments
frs 20 “share based payments” requires a fair value to be established for any equity settled share based payments 
fair value has been independently measured using a blackscholes valuation model the fair value determined at the grant 
date of the equity settled share based payments is expensed on a straightline basis over the vesting period based on the 
company’s estimate of shares that will eventually vest
vi deferred taxation
the payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items 
for accounting and taxation purposes full provision for deferred taxation is made under the liability method without 
discounting on timing differences that have arisen but not reversed by the balance sheet date unless such provision 
is not permitted by frs 19 “deferred tax”
deferred tax assets are recognised to the extent it is considered more likely than not that they will be recovered in accordance 
with frs 19 deferred tax is not provided for on 
a revaluation gains on land and buildings unless there is a binding agreement to sell them at the balance sheet date
b gains on the sale of 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 and
d extra tax payable if the overseas retained profits of subsidiaries joint ventures or associates are remitted in the future
deferred tax assets are recognised for taxable losses relating to trading to the extent that those losses are expected to 
be recoverable within the foreseeable future 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 company
vii foreign currencies
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted rate if the 
transaction is covered by a forward exchange contract monetary assets and liabilities denominated in foreign currencies are 
retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate exchange 
differences are taken to the profit and loss account
viii	defined	benefit	pension	scheme
the company has adopted the requirements of frs 17 “retirement benefits” the directors have determined that it is not 
possible to allocate the assets and liabilities of the scheme between the various group companies accordingly the scheme 
is not accounted for in the company’s balance sheet however any increase in the present value of liabilities within the 
defined benefit scheme expected to arise from employee service in the period is charged to operating profit in respect 
of the company’s employees
ix	defined	contribution	pension	plans
contributions to the group’s stakeholder pension plans are charged to the profit and loss account as incurred
1rnwhar09backindd   42 14122009   173400 renew holdings plc annual report  accounts 2009 68
notes to the company accounts continued
a accounting policies continued
x dividends
dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately 
authorised and are no longer at the discretion of the company unpaid dividends that do not meet these criteria are disclosed 
in the notes to the financial statements
xi stocks and work in progress
stocks comprise land held for development and are stated at the lower of cost and net realisable value cost includes 
appropriate attributable overheads and excludes interest where necessary provision is made for obsolete slow moving 
and defective stocks
b profit and loss account
as permitted by section 408 of the companies act 2006 the company has not presented its own profit and loss account 
the profit after taxation for the financial year dealt with in the accounts of the company was £7218000 2008 £2959000
the audit fee charged within the profit and loss account amounted to £60000 2008 £60000
c employee numbers and remuneration
      2009 2008 
      number number
the average monthly number of employees all of whom were administrative staff including  
executive directors employed in continuing activities during the year was   41 44
       
at 30 september      38 44
       
cost of staff including executive directors during the year amounted to
      £000 £000
wages and salaries      2265 2546
social security costs      293 304
other pension costs      184 106
share based payments      71 136
       
      2671 3092
       
details of individual directors’ emoluments and pension contributions can be found in the directors’ remuneration report 
on page 32 these numbers have been audited
d dividends
      2009 2008 
      penceshare penceshare
       
interim related to the year ended 30 september 2009    100 100
final related to the year ended 30 september 2008     200 120
       
total dividend paid      300 220
       
      £000 £000
       
interim related to the year ended 30 september 2009    598 598
final related to the year ended 30 september 2008     1199 719
       
total dividend paid      1797 1317
       
dividends are recorded only when authorised and are shown as a movement in equity shareholders’ funds rather than as a 
charge in the profit and loss account the directors are proposing that a final dividend of 20p per ordinary share be paid in 
respect of the year ended 30 september 2009 this will be accounted for in the 200910 financial year
1rnwhar09backindd   43 14122009   173400 renew holdings plc annual report  accounts 2009 69
e tangible fixed assets
     long  
    freehold leasehold plant   
    land and land and  vehicles and  
    buildings buildings  equipment total 
    £000 £000 £000 £000
cost
at 1 october 2008    — 789 311 1100
additions    701 — 3 704
       
at 30 september 2009    701 789 314 1804
       
depreciation 
at 1 october 2008    — 655 259 914
charge for year    9 5 34 48
       
at 30 september 2009    9 660 293 962
       
net book value  
at 30 september 2009    692 129 21 842
       
at 30 september 2008    — 134 52 186
       
the company has no assets held under finance leases or hire purchase agreements
f investments
       subsidiary 
       undertakings 
        £000
shares at cost
at 1 october 2008 and 30 september 2009      159405
provisions 
at 1 october 2008 and 30 september 2009      68880
net book value
at 30 september 2009       90525
at 30 september 2008       90525
details of the principal subsidiary undertakings are included in note r
the investment in subsidiaries is supported by their net asset values and their discounted expected future cash flows
g stock and work in progress
      2009 2008 
      £000 £000
       
undeveloped land      342 —
       
h debtors
      2009 2008 
      £000 £000
due within one year  
trade debtors      332 316
due from subsidiary undertakings      25369 19110
other debtors      68 1253
deferred tax       83 99
prepayments and accrued income      501 578
       
      26353 21356
       
i cash at bank and in hand
      2009 2008 
      £000 £000
cash at bank      14065 18655
       
cash at bank includes £01m 2008 £nil in respect of the net position on a sterling bank deposit of £60m 2008 £20m 
and a connected us loan of £59m us95m 2008 £20m us35m translated at the year end rate used to hedge 
the intercompany balance with the us subsidiary company
1rnwhar09backindd   44 14122009   173400 renew holdings plc annual report  accounts 2009 70
notes to the company accounts continued
j creditors amounts falling due within one year
      2009 2008 
      £000 £000
trade creditors      590 621
other taxation and social security      826 987
due to subsidiary undertakings      97612 97576
other creditors      288 761
accruals and deferred income      5858 9174
       
      105174 109119
       
k derivatives and other financial instruments
currency exposures
the only exposure of the company 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 company in 
the uk and the unhedged portion of an intercompany loan at 30 september 2009 the unhedged portion of the intercompany 
loan was nil 2008 4934000 at 30 september 2009 the balance on the us dollar bank account was 1000 2008 1000
the company’s operations are denominated in sterling
hedges
the company has a loan of 9500000 2008 3537000 with barclays bank plc acting as an economic hedge against 
the intercompany balance due by lovell america inc exchange losses of £551000 2008 loss £317000 were made 
during the year on foreign currency borrowings this has been fully offset against exchange gains made on the intercompany 
balance due by lovell america inc 
f air	value	of	financial	assets	and	liabilities
there are no material differences between fair value and the book value of the company’s financial assets and liabilities
l share capital
      2009 2008 
      £000 £000 
authorised  
100000000 2008 100000000 ordinary shares of 10p each    10000 10000
       
allotted called up and fully paid  
59898927 2008 59898927 ordinary shares of 10p each    5990 5990
       
share options
the company operates a share option scheme the renew holdings 2004 executive share option scheme
details of the scheme and options in issue are given below and in note m
the scheme has both an approved and unapproved element the difference between the two elements is that the approved 
scheme has the advantage of certain hmrc approved tax benefits  
both elements have the same general terms and conditions options issued under the scheme must be held for three years 
before they can vest and become exercisable they must be exercised within ten years from the date of grant 
vesting of options is dependant on the achievement of certain performance criteria which are established by the remuneration 
committee at the point of grant 761904 of the options granted in the 2006 financial year have vested 
in respect of the options granted during the 2007 and 2008 financial years the board has determined that it is unlikely that the 
performance criteria will be met and so 940252 of previously granted options are no longer expected to be exercised in respect 
of the options granted during the 2009 financial year 25 of the options will vest if the group’s earnings per share for the 
year ending 30 september 2011 exceed 9p for 100 vesting to occur the group’s earnings per share for the year ending 
30 september 2011 must be at least 135p
the scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the 
options will lapse
1rnwhar09backindd   45 14122009   173400 renew holdings plc annual report  accounts 2009 71
m reserves
   share capital  share based profit 
   premium redemption revaluation payments and loss 
   account reserve reserve reserve account 
   £000 £000 £000 £000 £000
at 1 october 2008    5893 3896 73 233 5518
transfer from profit and loss account for the year      7218
recognition of share based payments      71 
dividends paid       1797
       
at 30 september 2009   5893 3896 73 162 10939
       
share based payments reserve
frs 20 “share based payment” requires a fair value to be established for any equity settled share based payments 
fair value has been independently measured by baker tilly chartered accountants using a blackscholes valuation model 
the fair value determined at the grant date of the equity settled share based payments is expensed on a straightline basis 
over the vesting period based on the company’s estimate of shares that will eventually vest
£71000 has been credited 2008 charged £136000 to administrative expenses as a result of the board’s expectation that 
940252 of previously granted options will not vest
there is no impact on net assets since an equivalent amount has been charged against the share based payments reserve
no options were exercised or lapsed during the year
the value per option represents the fair value of the option less the consideration payable
the expected volatility is based on historical volatility of the share price since the company listed on aim in 2001
the risk free rate of return has been derived from the bank of england’s yield curve taking the spot rate for a maturity 
of 36 months this period has been selected as being the minimum period over which the options could remain extant
options granted under the renew holdings 2004 executive share option scheme over the company’s ordinary shares 
at 30 september 2009 were as follows
   7 june  8 january 3 december 26 november  
date of grant   2006 2007 2007  2008 total
awards outstanding at 30 september 2009
 – directors   761904 522292 417960 829403 2531559
exercise price and price at date of grant   525p 785p 1030p 545p —
maximum option life   10 years 10 years 10 years 10 years —
assumed option life for purposes of valuation  3 years 3 years 3 years 3 years —
expected volatility   47 46 40 41 —
dividend yield   1 150 180 590 —
risk free interest rate   467 488 446 385 —
value per option   205p 259p 280p 102p —
       
the options granted on 7 june 2006 have vested in full the board does not expect the options granted on 8 january 2007 
and 3 december 2007 to vest
there were 1702156 options outstanding at 1 october 2008 being those issued in june 2006 january 2007 and december 2007 
as detailed above
1rnwhar09backindd   46 14122009   173400 renew holdings plc annual report  accounts 2009 72
notes to the company accounts continued
n reconciliation of movements in equity shareholders’ funds
      2009 2008 
      £000 £000
profit for the year      7218 2959
dividends paid      1797 1317
       
      5421 1642
recognition of share based payments      71 136
at 1 october 2008      21603 19825
       
at 30 september 2009       26953 21603
       
o capital and leasing commitments
    land and  total total 
    buildings other 2009 2008 
    £000 £000 £000 £000
annual commitments under noncancellable  
operating leases expiring in
under one year    — 11 11 21
two to five years    — 8 8 92
five or more years    1519 — 1519 1379
       
    1519 19 1538 1492
       
the company has capital commitments at 30 september 2009 of £nil 2008 £nil
p contingent liabilities
the company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the normal 
course of business of its subsidiary undertakings
the company has guaranteed a letter of credit of £nil 2008 £353000 on behalf of lovell america inc
under the terms of the group’s banking agreement security over the company’s assets has been granted to the group’s bankers
office	of	f air	t rading	investigation
the company has received the decision from the office of fair trading “oft” following its investigation into tender 
activities within the construction sector
in 2007 the company announced that allenbuild one of its subsidiaries had been contacted by the oft in relation 
to some historic contract tenders renew and allenbuild have cooperated fully with the oft throughout its investigation
under the oft’s fast track offer allenbuild made two admissions of participation in cover pricing activities in respect of 
two tenders which occurred in 2003 and 2004 in the now closed midlands office of allenbuild no employees connected 
with the infringements remain with the group prior to the oft investigation the board of renew was unaware of these 
infringements which took place prior to the appointment of the current group executive directors
immediately following the commencement of the oft investigation renew introduced reinforced groupwide tendering 
procedures these guidelines and controls are in place to ensure that all subsidiaries comply with competition laws compliance 
with these procedures is audited on a regular basis the practice of cover pricing is not regarded as acceptable within the 
renew group of companies
the oft’s decision was that a fine of £05m will be levied on allenbuild and that a fine of £30m will be levied on bullock construction 
limited “bullock” bullock is a former subsidiary of renew which was sold in september 2005 to a company controlled by 
bullock’s management the bullock offence occurred in 2000 the oft holds that renew holdings plc is jointly and severally 
liable for both of these fines but leaves the determination of apportionment of liability to the parties themselves
the board of renew was totally unaware of the circumstances surrounding the bullock infringement as there are no records 
remaining within the group following the sale of bullock
having taken legal advice renew has appealed against the oft’s decision on a number of counts in respect of the bullock 
fine the board believes that renew has no liability accordingly in these results the group has provided a sum of £05m as 
an exceptional charge in respect of the allenbuild fine with no provision for the bullock fine were the company’s appeals 
against the bullock fine not to be upheld then the company may have a liability in respect of this matter
1rnwhar09backindd   47 14122009   173400 renew holdings plc annual report  accounts 2009 73
q defined contribution pension scheme
on 1 april 2008 the renew holdings pension scheme commenced winding up during the 2009 financial year the assets 
were transferred to individual stakeholder plans which the group established for scheme members
the company made contributions of £184000 2008 £106000 into these plans during the year there are also £6000 
2008 £8000 of accruals relating to these plans
r principal subsidiary undertakings
renew holdings plc acts as the holding company of the group the principal activity of the group during the year 
was construction and construction related activities
the principal subsidiary undertakings are shown below
     proportion of 
     ordinary  
    incorporation and shares  
    principal place held by the 
    of business company
subsidiary undertakings
yjl ltd  owned by renew holdings plc england and wales 100
allenbuild ltd   owned by subsidiary  england and wales 100
britannia construction ltd   owned by subsidiary  england and wales 100
walter lilly  co ltd   owned by subsidiary  england and wales 100
yjl london ltd   owned by subsidiary  england and wales 100
yjl infrastructure ltd   owned by subsidiary  england and wales 100
vhe construction plc   owned by subsidiary  england and wales 100
shepley engineers ltd   owned by subsidiary  england and wales 100
seymour civil engineering contractors ltd  owned by subsidiary  england and wales 100
lovell america inc   owned by subsidiary  usa 100
s related parties
the company has a related party relationship with its key management personnel who are the main board directors b may 
j samuel r harrison and j bishop whose total compensation amounted to £875000 all of which was represented by 
shortterm employment benefits
there were no other transactions with key management personnel in the year
1rnwhar09backindd   48 14122009   173400 renew holdings plc annual report  accounts 2009 74
shareholder information
directors
r harrison obe nonexecutive chairman 
b may chief executive 
j samuel fca group finance director 
j bishop fca independent nonexecutive
registrars
capita registrars 
northern house 
woodsome park 
fenay bridge 
huddersfield 
hd8 0ga
auditors
kpmg audit plc 
1 the embankment 
neville street 
leeds ls1 4dw 
nominated advisor and broker
brewin dolphin securities ltd 
34 lisbon street 
leeds ls1 4lx
company secretary 
j samuel fca
company number 
650447
registered address
yew trees 
main street north 
aberford 
west yorkshire 
ls25 3aa
website address 
wwwrenewholdingscom
shareholder information
annual general meeting 27 january 2010
results announcement	of	interim	results	–	may	2010	
  preliminary	announcement	of	f u l l 	 y e a r 	 r e s u l t s 	 – 	 n o v e m b e r 	 2 0 1 0 
dividend reinvestment plan 
for any shareholders who wish to reinvest dividend payments in the company a facility is provided by capita irg 
trustees ltd in conjunction with capita registrars under this facility cash dividends are used to purchase additional 
shares any shareholder requiring further information should contact capita on 0871 664 0381 calls cost 10p per minute 
plus any network extras from within the uk lines are open from 9am to 530 pm monday to friday if calling from 
overseas 44 0208 639 3402 fax 0208 639 1023 email sharescapitaregistrarscom or visit wwwcapitaregistrarscom 
boiler room fraud 
in recent years many companies have become aware that their shareholders have received unsolicited phone calls 
or correspondence concerning investment matters these are typically from overseas based ‘brokers’ who target uk 
shareholders offering to sell them what often turn out to be worthless or high risk shares in us or uk investments these 
operations are commonly known as ‘boiler rooms’ shareholders are advised to be wary of any unsolicited advice 
offers to buy shares at a discount or offers of free company reports if you receive any unsolicited investment advice
  check that they are properly authorised by the fsa by visiting wwwfsagovukregister 
  report the matter to the fsa either by calling 0300 500 5000 or visiting wwwmoneymadeclearfsagovuk 
if you deal with an unauthorised firm you will not be eligible to receive payment under the financial services 
compensation scheme the fsa can be contacted by completing an online form at wwwfsagovuk more detailed 
information on this or similar activity can be found on the fsa website wwwmoneymadeclearfsagovuk
1rnwhar09backindd   49 14122009   173400 renew holdings plc annual report  accounts 2009 75
notice of annual general meeting
notice is hereby given that the fiftieth annual general meeting of the company will be held at the offices of kpmg llp  
1 the embankment leeds ls1 4dw on 27 january 2010 at 1100am to consider and if thought fit pass resolutions 1 to 6 
below as ordinary resolutions and resolution 7 below as a special resolution 
the meeting will consider the following business
ordinary business
1  to receive and adopt the audited financial statements for the year ended 30 september 2009 and the reports of the 
directors and auditors thereon 
2  to declare a final dividend of 2p per share 
3  to reelect john samuel who retires as a director in accordance with the company’s articles of association and offers 
himself for reelection
explanatory note biographical details of john samuel are included in the directors’ report in the annual report and accounts
4 to approve the remuneration report for the year ended 30 september 2009 
5 to reappoint kpmg audit plc as auditors of the company
6 to authorise the directors to determine the auditors’ remuneration 
special business 
7  that the directors be and are hereby given the general power pursuant to section 570 of the companies act 2006 
“act” to allot equity securities as defined by section 560 of the act wholly for cash as if section 561 1 of the act 
did not apply to any such allotment provided that this power shall be limited to the allotment of equity securities
 a   in connection with an offer by way of rights issue to holders of ordinary shares in proportion as nearly as may be 
practicable to their respective holdings of such shares but subject to such exclusions or other arrangements as the 
directors may deem necessary or expedient in relation to fractional entitlements record dates or any legal or practical 
problems under the laws of any territory or the requirements of any regulatory body or stock exchange and
 b  up to an aggregate nominal amount of £299495
  the power granted by this resolution will expire on 28 april 2011 or if earlier the conclusion of the company’s next 
annual general meeting unless renewed varied or revoked by the company prior to or on such date save that the 
company may before such expiry make offers or agreements which would or might require equity securities to be 
allotted after such expiry and the directors may allot equity securities in pursuance of any such offer or agreement 
notwithstanding that the power conferred by this resolution has expired
  this resolution revokes and replaces all unexercised powers previously granted to the directors to allot equity securities 
as if either section 891 of the companies act 1985 or section 5611 of the act did not apply but without prejudice to 
any allotment of equity securities already made or agreed to be made pursuant to such authorities
  explanatory note by resolution 7 the directors are seeking renewal of the power to allot shares for cash for the purposes 
of a rights issue or otherwise 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 of the company at 24 november 2009 if given this 
power will expire at the company’s agm in 2011 or on 28 april 2011 whichever is the earlier
by order of the board
j samuel fca
company secretary
24 november 2009
renew holdings plc  
registered office yew trees main street north aberford west yorkshire ls25 3aa
1rnwhar09backindd   50 14122009   173400 renew holdings plc annual report  accounts 2009 76
notes
1  a member of the company must be entered on the register of members at 6pm on 25 january 2010 or the date which 
is two days prior to any adjourned agm in order to be entitled to attend and vote at the meeting as a member in respect 
of those shares
2  a member entitled to attend and vote at the agm may appoint one or more proxies who need not be a member of the 
company to attend and to speak and to vote on his or her behalf whether by show of hands or on a poll a member 
can appoint more than one proxy in relation to the meeting provided that each proxy is appointed to exercise the rights 
attaching to different shares held by him
3  proxy forms and the powers of attorney or other authority if any under which they are signed need to be deposited at 
the office of the company’s registrars capita registrars the registry 34 beckenham road beckenham kent br3 4tu 
not later than 48 hours before the time appointed for the meeting completion of a proxy or any crest proxy instruction 
as described in paragraph 4 below will not preclude a shareholder from attending and voting in person at the meeting
4  crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may 
do so by using the procedures described in the crest manual crest personal members or other crest sponsored 
members and those crest members who have appointed a service providers should refer to their crest sponsor 
or voting service providers who will be able to take the appropriate action on their behalf 
  in order for a proxy appointment or instruction made using the crest service to be valid the appropriate crest 
message a “crest proxy instruction” must be properly authenticated in accordance with the specifications of crest’s 
operator euroclear uk  ireland limited “euroclear” and must contain the information required for such instruction 
as described in the crest manual the message regardless of whether it constitutes the appointment of a proxy or is 
an amendment to the instruction given to a previously appointed proxy must in order to be valid be transmitted so as 
to be received by the issuer’s agent id ra10 by 11am on 25 january 2010 for this purpose the time of receipt will 
be taken to be the time as determined by the timestamp applied to the message by the crest application host from 
which the issuer’s agent is able to retrieve the message by enquiry to crest in the manner prescribed by crest  after 
this time any change of instructions to proxies appointed through crest should be communicated to the appointee 
through other means 
  crest members and where applicable their crest sponsors or voting service providers should note that euroclear 
does not make available special procedures in crest for any particular message normal system timings and limitations 
will therefore apply in relation to the input of crest proxy instructions it is the responsibility of the crest member 
concerned to take or if the crest member is a crest personal member or sponsored member or has appointed a 
voting service provider to procure that his crest sponsor or voting service providers takes such action as shall be 
necessary to ensure that a message is transmitted by means of the crest system by any particular time in this connection 
crest members and where applicable their crest sponsors or voting system providers are referred in particular 
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  the company may treat as invalid a crest proxy instruction in the circumstances set out in regulation 355a of the 
uncertificated securities regulations 2001 
notes to the notice of annual general meeting
1rnwhar09backindd   51 14122009   173400  and expense
	cash 	flow	statement
 meeting
group businesses
shepley engineers
robinson house 
westlakes science park 
moor row 
cumbria 
ca24 3hy 
tel 01946 599 022
vhe
phoenix house 
hawthorn park 
coal road 
seacroft 
leeds 
ls14 1pq 
tel 0113 273 9200
seymour
30–34 navigation point 
hartlepool 
ts24 0uq 
tel 01429 223 521
britannia civil engineering
britannia house 
staverton technology park 
cheltenham 
gloucestershire 
gl51 6tq 
tel 01452 859 880
yjl infrastructure
39 cornhill 
london 
ec3v 3nu 
tel 020 7522 3220
walter lilly
waddon house 
283 stafford road 
croydon 
surrey 
cr0 4nn 
tel 020 8730 6200
britannia construction
britannia house 
staverton technology park 
cheltenham 
gloucestershire 
gl51 6tq 
tel 01452 859 880
allenbuild north west
jubilee house 
waterside drive 
wigan  
wn3 5az 
tel 01942 246 265
allenbuild south east
unecol house 
819 london road 
north cheam 
surrey 
sm3 9bn 
tel 020 8335 4800
allenbuild north eastmidlands
phoenix house 
hawthorn park 
coal road 
seacroft 
leeds 
ls14 1pq 
tel 0113 237 5600
1coverindd   2 15122009   092023 renew holdings plc
yew trees 
main street north 
aberford 
west yorkshire ls25 3aa 
tel 0113 281 4200 
fax 0113 281 4210 
web wwwrenewholdingscom
company number 650447 
registered in england  wales
renew holdings plc annual report  accounts 2009
1coverindd   1 15122009   092021


Summary:
 04
chief executive’s review
brian may
chief executive
“ the group continues to 
make progress in realising 
its objective of shifting 
the balance of its revenues 
progressively into 
specialist engineering”
overview
our strategy of expanding specialist 
engineering activities whilst concentrating 
on secure margin delivery in specialist 
building is well established
in specialist engineering revenue 
has increased by 14 and now 
accounts for 36 of group revenue 
with margins remaining within our 
target  range at 35 our specialist 
engineering markets are resilient and 
have strong regulatory drivers this is 
evidenced by the encouraging 67 
increase in forward work to £82m 
2008 £49m of which 97 is in 
the form of repeat business
in specialist building as anticipated 
revenues reduced by 29 27 being 
in retail and non specialist sectors 
despite this specialist building remained 
profitable with a 12 return prior to 
exceptional items the decisive action 
taken to reduce capacity has resulted 
in a specialist building business which is 
now appropriately sized with a competitive 
cost base to meet the market conditions 
anticipated over the coming years
we have continued to look for 
complementary acquisitions to develop 
our specialist engineering business 
whilst acquisitions that meet our 
demanding criteria have been difficult 
to identify we were delighted to announce 
two acquisitions during the year in 
october 2008 seymour’s capability in 
the water industry was further enhanced 
with the acquisition of ca pumps ltd 
ca is based in county durham 
and operates nationally providing 
1rnwhar09frontindd   4 15122009   092103 renew holdings plc annual report  accounts 2009 05
chief executive’s review
mechanical and electrical design 
installation and maintenance services
in may we acquired mothersill 
engineering a specialist machining 
and fabrication business which 
enhances our offering to the nuclear 
industry mothersill has worked with our 
nuclear business shepley for many 
years and provides support to nuclear 
new build projects decommissioning 
and production operations 
review of operations
specialist engineering
nuclear
shepley engineers continues to be 
active in five nuclear facilities sellafield 
drigg springfields capenhurst and 
chapelcross at sellafield where shepley 
has worked for 54 years the company 
remains the largest mechanical and 
electrical contractor on site shepley 
operates in the fields of both asset 
support and decommissioning 
underpinned by four frameworks with 
sellafield ltd all of which have been 
extended during the year the multi 
discipline site wide framework 
continues to provide significant volume 
the spend by the nuclear 
decommissioning authority is 
planned to be £84bn over the next 
three years with 59 allocated to the 
facilities in which shepley is active 
this is providing additional opportunities 
outside the frameworks and during the 
year shepley has received initial orders 
on the £80m separation area ventilation 
project and the £200m b30 project 
the most hazardous industrial complex 
in western europe further work on 
these projects is anticipated
in addition shepley was recently 
awarded the £43m project to reclad 
unit 560 direct for sellafield ltd it is 
also part of the major group which 
includes jacobs and doosan babcock 
bidding for the high active liquid 
effluent facility the largest single 
contract to be let by sellafield with 
a value in excess of £500m
water
seymour acquired by the group in 
2007 specialises in water infrastructure 
development flood alleviation and sea 
defences seymour’s revenues have 
increased by 50 since acquisition
seymour’s largest client is northumbrian 
water for whom it carries out work on 
four frameworks flood alleviation and 
combined sewer overflows continue to 
feature strongly with £15m of orders 
received in the year northumbrian 
water is the 8th largest water company 
measured by investment spend and the 
frameworks are due for renewal in 2011 
seymour has commenced work to 
maximise its future position on the 
amp5 frameworks
during the year ca has been awarded 
an me framework by scottish water 
the first for this client similarly allenbuild 
has recently been appointed to our first 
framework with severn trent which is 
expected to provide £20m of projects 
per annum for its framework partners
ofwat recently published its draft 
proposals for a £21bn investment 
programme over the next five years 
this is an increase over the last five 
year period with a greater spend 
anticipated on flood alleviation
land remediation
the repositioning of the vhe business 
last year into regional civil engineering 
due to the reduced remediation market 
has proved effective this is demonstrated 
by the award of the £15m cudworth 
bypass contract which is the fifth 
contract for barnsley mbc
remediation continues to provide 
opportunities for vhe and during the 
year we were awarded a £58m project 
to remediate the site of the commonwealth 
games athletes village in glasgow 
one of the largest remediation projects 
in scotland in addition vhe has been 
appointed preferred bidder to develop 
a remediation strategy on a redundant 
gasworks in jersey work also continues 
to be awarded under our national 
grid framework with discussions 
ongoing to secure a two year extension
vhe is the uk’s leading specialist 
contractor undertaking remediation 
works under part iia of the environmental 
protection act 1990 and recently has 
secured two further awards including 
a £15m scheme in cardiff this act 
sets out the regulatory framework 
for local authorities to deal with the 
estimated 200000 hectares of land 
contaminated during previous use
vhe continues to improve its 
remediation skills and is investigating 
different remediation technologies to 
respond to environmental and energy 
saving concerns vhe is developing 
an expertise in solidification and 
stabilisation with a european partner 
vhe remains well placed to provide its 
specialist skills as opportunities arise
1rnwhar09frontindd   5 15122009   092107 06
rail
our rail business yjl infrastructure 
has seen substantial growth in the year 
and has now widened its customer 
base working for eight client bodies 
over the last two years
the principal market is within london 
and the home counties where there 
are approximately 700 stations and 
30 depots £40bn has been committed 
to transport for london to upgrade 
london’s transport system over the 
next ten years with network rail also 
having a £35bn development plan 
running to 2014 yjl infrastructure 
as an accredited rail contractor 
is active in both these sectors
in october 2008 yjl infrastructure 
was appointed to the vendor capital 
programme framework with london 
underground which will provide ongoing 
opportunities over the next four years 
during the last year major awards have 
been the modernisation of marble arch 
and notting hill gate stations valued 
at £15m each station fit outs for south 
eastern on ctrl and two projects for 
network rail at waterloo including the 
complex and time sensitive peak hour 
subway an award has also been received 
for an intrusive survey project for crossrail
specialist building
social housing
allenbuild has now established itself 
as one of the leading new build social 
housing contractors in the south east 
having doubled revenues over the last 
three years it continues to receive 
awards recognising its reputation for 
quality delivery innovation and value 
engineering and is at the forefront 
of developments on environmental 
sustainability and energy saving issues
the social housing market has well 
established spending plans allenbuild 
has a position on ten frameworks 
an increase of two in the year these 
underpin the business providing access 
to an annual £650m market allenbuild 
has relationships with six of the top twelve 
housing associations as listed in the 
recent homes  communities agency 
grant allocation awards
66 of projected revenues in this 
sector are secured for the coming 
year with the balance identified and 
in final negotiation in addition there 
is over £100m of future opportunities 
in discussion
restoration and refurbishment
this specialist sector has remained 
strong particularly for walter lilly 
which remains a preferred contractor 
for consultants in high quality residential 
refurbishment walter lilly has particular 
skills in providing innovative solutions 
to the temporary works challenges 
in extending properties underground 
which is a major requirement for most 
residential projects in london this skill 
has been demonstrated in the successful 
completion of the 11m deep basement 
to form a stacking car park at their 
£36m project in grosvenor crescent
during the year good progress was 
made on the extensive refurbishment of 
a large grade ii listed private residence 
in regents park and walter lilly was 
also awarded the £35m contract to 
chief executive’s review continued
1rnwhar09frontindd   6 15122009   092107 renew holdings plc annual report  accounts 2009 07
carry out restoration and refurbishment 
works to a prestigious grade ii listed 
property in park lane
walter lilly was proud to be awarded the 
project to construct the 7th july memorial 
in hyde park the memorial which was 
officially opened by hrh prince of wales 
contains 52 stelae one for each of those 
who lost their lives in the central london 
bombings in july 2005
the group has worked on a variety of 
projects at the palace of westminster 
for over twelve years and was delighted 
to be awarded the first phase of the cast 
iron roof restoration valued at £7m 
science and education
substantial government funding 
remains committed to improving 
the country’s science and education 
facilities we continue to secure projects 
both individually and through our eight 
national frameworks in this sector 
we have continued our long association 
with defra with a further £7m award and 
have recently been awarded our 63rd 
project in a 17 year relationship with 
glaxosmithkline in addition we have 
received a further award on our imperial 
college framework
following confirmation of learning 
and skills council funding for the 
kirklees college waterfront campus 
we are now finalising contractual 
arrangements on this £46m project 
and have commenced works on site 
under an enabling contract
people
keeping our employees and those 
who work with us operating safely is 
of paramount importance to the group 
i am pleased that 2009 has seen us 
again beat our yearly safety target with 
a reduction of 17 in the accident 
incidence rate over the year which is 
a 64 reduction over the last four years 
the achievements of the group during 
these challenging times are a testament 
to the skills hard work and commitment 
of all our employees for which the board 
is very grateful
summary
the group continues to make progress 
in realising its objective of shifting the 
balance of its revenues progressively 
into specialist engineering
in specialist engineering we are 
active in markets that are substantially 
underpinned by regulatory spending 
whilst in specialist building we are 
focusing our capacity on more resilient 
specialist sectors
the group is now appropriately 
structured to meet the challenges 
of the years ahead the board has 
set a target for 2012 of developing a 
specialist engineering and construction 
services group with an operating profit 
margin of over 2 and with specialist 
engineering providing at least 50 
of revenue
brian may
chief executive
24 november 2009
chief executive’s review
1rnwhar09frontindd   7 15122009   092109