supporting uk 
infrastructure
renew holdings plc 
annual report and accounts 
year ended 30 september 2014
renew holdings plc annual report and accounts 2014 supporting uk infrastructure
strategic report
01 highlights
02 renew’s structure
04 renew’s operations
06 markets
08 business model
10 strategy
12 investment case
14 chairmans statement
16 chief executives review
20 financial review
22 operational review
24 energy
28 environmental
32 infrastructure
36 specialist building
corporate governance
39 corporate social responsibility
42 directors’ report
45 directors’ remuneration report
49 corporate governance
51  statement of directors’ 
responsibilities
accounts
52 independent auditor’s report
53 group income statement
54  group statement of 
comprehensive income
54  group statement of changes in equity
55 group balance sheet
56 group cashflow statement
57 notes to the accounts
79 company balance sheet
80 notes to the company accounts
86  directors officers and advisors
87 shareholder information
88 our subsidiary businesses
 
energy
nuclear traditional 
renewable and gas 
infrastructure
 page 24
environmental
water and land remediation
 page 28
specialist building
high quality residential
 page 36
infrastructure
rail and wireless telecoms
 page 32
renew provides multidisciplinary engineering services through its 
independently branded businesses to support essential uk infrastructure renew holdings plc
annual report and accounts 2014 01
strategic report
strategic report
highlights
operational highlights
  successful integration of lewis civil 
engineering limited 
  acquisition of clarke telecom limited 
  acquisition of forefront group limited
283
464
2013 2014
270
2012
246
2011
201
2010
100
164
2013 2014
96
2012
79
2011
40
2010
36
50
2013 2014
315
2012
30
2011
30
2010
124
208
2013 2014
124
2012
97
2011
45
2010
revenue £m
£464m
adjusted earnings per share p
208p
adjusted operating profit £m
£164m
dividend per share p
50p
financial highlights
103
139
2013 2014
89
2012
90
2011
132
2010
net assets £m
£139m
we improve
we maintain
we renew
business model
 page 8
strategy
 page 10
read more about our operations
the group has successfully grown its engineering 
services business both organically and by acquisition
  results are shown prior to exceptional items and amortisation 
charges and after accounting for discontinued operations renew holdings plc
annual report and accounts 2014
strategic report
02
renew’s structure
strong independently branded 
subsidiary businesses
renew holdings plc
board of directors
 page 43
governance
 page 49
nonexecutive chairman 
roy harrison obe 
chairman of the board
renew’s board structure
group finance 
director and 
company secretary
john samuel fca
group engineering 
services director 
paul scott
independent  
nonexecutive 
director
john bishop
chief executive 
 
brian may
independent  
nonexecutive 
director
david forbes renew holdings plc
annual report and accounts 2014 03
strategic report
energy environmental specialist 
building
infrastructure
operational review
 page 22
chief executive’s review
 page 16
renew’s subsidiary businesses
renew’s organisational structure
our independently branded subsidiary businesses supported 
by the strength of the renew holdings group deliver engineering 
services aligned to our clients local needs where regional 
knowledge and specialist expertise provide a differentiator
renew holdings plc renew holdings plc
annual report and accounts 2014
strategic report
04
renew’s operations
integrated engineering services
with our range of integrated engineering services we are 
ideally positioned to access essential maintenance and 
renewal spending programmes across our markets
£464m
group revenue
2
acquisitions in  
the year
10
individually branded 
uk subsidiary 
businesses
3121
directly employed 
multiskilled  
employees renew holdings plc
annual report and accounts 2014 05
strategic report
our multidisciplinary engineering services businesses provide 
  operational support and asset care 
  critical planned and reactive maintenance and renewals
  civil mechanical and electrical engineering
infrastructure energy environmental
engineering services
renew holdings plc
  maintaining strategic water mains 
and main drainage
  clean and waste water 
rehabilitation infrastructure
  flood alleviation and attenuation
  port harbour and sea defences
  soil and groundwater remediation
  offtrack asset renewal 
and maintenance
  tunnel and shaft refurbishment
  bridges structures 
and earthworks
  moving structures
  wireless telecoms installations
  nuclear decommissioning
  supporting traditional and 
renewable energy facilities
  gas distribution network asset 
maintenance replacement 
and installation
  specialist flow stopping drilling 
and internal inspection
our subsidiaries operate across the energy environmental  
and infrastructure markets renew holdings plc
annual report and accounts 2014
strategic report
06
energy
markets
well positioned for future growth
we operate in mainly regulated markets where longterm spending plans 
and committed funding provide good visibility of future opportunities
nuclear 
the nuclear decommissioning authority 
nda is responsible for the cleanup and 
waste management of the uk’s nuclear 
legacy with 17 sites nationally the nda’s 
total planned expenditure for 201415 is 
around £3bn over half of this is allocated 
to sellafield where work continues to 
focus on high risk and high hazard 
reduction operations
1
an estimated investment of around £60bn 
is expected in new nuclear power stations 
in the uk by 2030 as most of the existing 
fleet of nuclear power stations are retired
2
t raditional and renewable
as demand for energy increases it is 
likely that the life of some of the uk’s 
existing traditional generating assets will 
be extended requiring investment in 
longterm maintenance programmes
demand for renewable energy is expected 
to increase following the governments 
commitment to deliver 15 of the uk’s 
energy consumption from renewable 
sources by 2020
3
as part of ongoing improvements to the 
gas network the uk is currently 
undertaking a number of essential gas 
network asset replacement programmes
following concerns over iron gas mains 
safety the health and safety executive 
has implemented the national iron mains 
risk reduction programme to replace gas 
mains within 30 metres of a building by 
2032 or earlier
4
water
uk water companies regulated 
by the water services regulation 
authority ofwat undertake large 
scale investment programmes to 
maintain and renew their water 
and sewerage infrastructure assets 
work on asset management programme 
6 the next five year regulatory period in 
the water industry is due to commence 
in april 2015 and will focus on 
maximising the efficient use of existing 
assets through integrated solutions 
the uk government has made an 
unprecedented six year commitment 
to invest record levels in improving 
flood defences up to 2021
5
land remediation
the homes and communities agency 
hca is responsible for the disposal 
of publicly owned land including former 
industrial land transferred from the 
former regional development agencies 
the hca corporate plan 2014–2018 
includes specific targets in relation to 
the use of such legacy sites and funding 
arrangements to achieve economic 
growth and to provide suitable and 
sufficient housing stock across the uk and 
to stimulate strategic inward investment
6
rail
demand for rail services is anticipated 
to grow by more than 30 over the 
next decade 
to meet this challenge network rail 
is investing around £38bn over the 
next five years to 2019 cp5 on running 
maintaining and improving britain’s 
railway which includes some 30000 
bridge tunnel and embankment assets
7
wireless telecoms
research undertaken for the market 
regulator ofcom estimates that demand 
for mobile data could be as much as 
80 times higher than today by 2030 as 
the market continues to expand with 
growth largely driven by the increasing use 
of mobile devices and internet services 
as demand for service on the 
existing mobile network infrastructure 
increases substantial investment is 
expected to add new infrastructure 
upgrade existing networks and 
decommission redundant assets 
ofcom set a 2017 deadline for network 
operators to provide comprehensive 2g 
3g and 4g coverage across the country
8
environmental infrastructure renew holdings plc
annual report and accounts 2014 07
strategic report
expanding our range 
of engineering services
high quality residential
the high quality residential market 
in london and the home counties 
remains strong with improved visibility 
we have particular specialist engineering 
expertise in carrying out major structural 
alteration works
this market requires knowledge and 
experience walter lilly has a strong brand 
and an excellent reputation developed over 
many years in this market
making progress 
in new markets
as part of the group’s strategy of 
expanding its range of capabilities into new 
infrastructure markets renew made two 
complementary acquisitions in the year 
in clarke telecom and forefront group 
giving the group a position in the wireless 
telecoms and gas infrastructure markets
who are clarke telecom and forefront group
clarke telecom based in manchester is a leading supplier of specialist 
wireless telecoms infrastructure services undertaking all aspects of 
delivery including acquisition planning and design through to deployment 
and optimisation network rollouts are managed by utilising highly skilled 
inhouse resources working for the network operators the majority of 
work is undertaken through framework agreements
forefront group based in the south east is a leading supplier to the gas 
infrastructure market where it provides gas mains installation repair 
maintenance and replacement services through framework agreements 
working on the longterm gas network asset replacement programmes 
gives excellent visibility of opportunities and strong growth prospects 
why has renew chosen to expand its engineering services 
into the wireless telecoms and gas infrastructure markets 
through the recent acquisitions 
renew’s acquisition strategy has seen the group consider a range of markets 
which benefit from good visibility of ongoing spending on uk infrastructure 
suitable business opportunities must have strong relationships in these 
markets where the skill sets are complementary to those that exist within the 
rest of the group clarke telecom and forefront group are leading suppliers in 
their markets delivering engineering services to maintain and renew critical uk 
infrastructure assets and operating in regulated markets which benefit from 
ongoing programmes of funding and which have high barriers to entry 
does this change the group’ s ongoing acquisition strategy
it remains the group’s ongoing strategy to continue to develop its range 
of engineering services identifying acquisitions that either expand the 
group’s current market position or enable its entry into new markets 
which will add to operating margins and enhance earnings per share 
specialist building
1  nuclear decommissioning authority business plan 
– financial year beginning april 2014 to financial 
year ending march 2017 april 2014 
2  hm government industrial strategy government 
and industry in partnership the uk’s nuclear 
future 2013 
3  department of energy  climate change uk 
renewable energy roadmap july 2011 
4  health and safety executive enforcement policy 
for the iron mains risk reduction programme 
2013–2021 
5  environment food and rural affairs committee 
winter floods 2013–14 government response to 
the committee’s first report of session 2014–15 
october 2014 
6  homes and communities agency corporate plan 
2014–18 july 2014
7  network rail limited annual report and accounts 
2014 june 2014 
8  ofcom consumer experiences of mobile phone calls 
august 2014 
operational review
 page 22 renew holdings plc
annual report and accounts 2014
strategic report
08
business model
 
development 
and delivery of 
growth strategy
 see page 10
  
ensuring the safe 
delivery of our 
operations
 
ensuring the 
consistent delivery 
of quality
 
ensuring thorough 
risk management
 
development of long
term positions in our 
target regulated 
markets
delivering value to shareholders
through effective controls and management of our operating 
subsidiaries we seek to deliver value to shareholders in the 
form of reliable capital growth and a progressive dividend 
policy growth is delivered through both organic and 
acquisitive strategies
our wholly owned subsidiary businesses provide 
specific engineering services within targeted markets
each of our businesses operates autonomously supported 
by renew in areas where setting overall standards and sharing 
best practice such as health and safety human resources and 
information technology allows our subsidiaries to benefit from 
group experience whilst maintaining their discrete approach 
to individual markets
individually our businesses build on their strong recognised 
brands whilst collective collaborative working provides 
additional opportunities in expanding the range of services 
we offer to our clients
the role of renew
read more about 
the development 
and delivery of our 
growth strategy
 see overleaf renew holdings plc
annual report and accounts 2014 09
strategic report
safety remains the group’s priority our safe operations are 
managed and delivered locally by our subsidiary businesses 
alongside their safety advisors who have specific knowledge 
in the individual environments
our subsidiary businesses work in challenging environments 
attention to delivering services safely ensures the continued 
improvement in our accident incidence rate which has improved 
by over 90 in the last nine years
the work we undertake has seen a shift in nature with an increase 
in small teams working remotely this change has driven our focus 
on behavioural safety training in addition to our continuing safety 
initiatives to ensure the well being of our employees suppliers 
and those who work with us
more about our safe operations can be found in our corporate 
social responsibility report
corporate social responsibility report
 page 39
our subsidiary businesses are leading suppliers in their 
markets a key factor in our success in these markets is the 
consistent quality delivery of our services the type of work the 
group undertakes involves a high volume of small value tasks 
usually on large scale infrastructure networks 
ensuring continuity of delivery takes many approaches and 
requires a commitment across our businesses in areas such as 
logistics training investment in technology corporate social 
responsibility and in the management of our supply chain 
we strive to continue to develop and improve our business 
processes with key initiatives such as our aftercare service 
programmes and supply chain workshops
operational review
 page 22
our subsidiary businesses are governed by a system of controls 
which include overarching requirements to adhere to group 
minimum standards using internal audit processes to monitor 
compliance
our system of internal controls is based on the key principles 
of risk assessment control environment and activities 
information and communication and monitoring and 
evaluation of effectiveness which delivers robust 
commercial risk management
each subsidiary business is required to have a management 
system in place renew’s group minimum requirements 
outline the processes to be maintained within the business 
management system individual business management 
systems are certified to iso9001 
regular operational and financial reporting is supported by 
monthly management meetings attended by a group executive 
member regular executive management committee meetings 
and monthly main board meetings
principal risks and uncertainties
 page 11
across our markets we provide multidisciplinary engineering 
services concentrating on operational support asset care 
and maintenance undertaking a high volume of small tasks 
we are often working on longterm framework agreements 
where we provide ongoing support to our clients over 
many years
the work we undertake involves supporting the daytoday 
operations maintenance and emergency care requirements 
of some of the uk’s essential assets including the rail network 
nuclear and traditional power stations water and gas pipe 
networks and wireless telecoms network infrastructure
our clients engage our services often on a longterm basis 
where our work enables them to maintain continuity of 
service to their customers our responsive integrated 
engineering services and consistent delivery mean that we 
work on some of the largest frameworks designed to deliver 
asset care and maintenance services from our clients 
operational expenditure budgets
our business model in action
markets
 page 6
ensuring the safe delivery 
of our operations
ensuring the consistent 
delivery of quality
ensuring thorough 
risk management
development of longterm 
positions in our target 
regulated markets renew holdings plc
annual report and accounts 2014
strategic report
10
strategy
since 2006 it has been the group’s 
strategy to expand its engineering 
services activities both organically 
and by acquisition
it has been the group’s ambition to develop 
its engineering services businesses to 
account for over 70 of group revenue 
with turnover exceeding £500m
in 2014 group revenue was £464m and 
engineering services accounted for 82 
of this total
the group has strong positions in its 
target markets through a mixture of 
organic and acquisitive growth
the group continues to focus on developing 
its engineering services through
  organic growth broadening our 
service offering to existing and 
new clients
  customer relationships built 
on responsiveness and
  acquisitive growth through 
identifying businesses with strong 
relationships in regulated markets
development and delivery 
of our growth strategy
where we were where we are where we are going
our strategic targets
15 engineering  
services revenue
target by 2010
33 engineering  
services revenue
36 engineering  
services revenue 
achieved 1 year early
target by 2012
50 engineering  
services revenue
2 group operating profit
target by 2014
70 engineering services revenue
3 group operating profit
52 engineering services revenue
22 group operating profit
achieved 1 year early
82 engineering services revenue
35 group operating profit
achieved on target
2006
2007 2009 2011
2009 2011 2014
target by 2017
£500m group revenue
45 group operating profit
2017 renew holdings plc
annual report and accounts 2014 11
strategic report
how we measure our progress
key performance indicators
the directors have established a number of key performance indicators which they use to measure and monitor the performance 
of the group in a number of different areas these measures are set out in the tables below the engineering services segment 
targets have been established as part of the board’s drive to grow both revenue and profitability in that segment of the business 
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 
2017 2016 2015 2014 2013
engineering services revenue as 
a percentage of group revenue
target – not less than 85 84 83  70 70
actual performance    82 82
engineering services operating 
profit as a percentage of revenue
target – not less than 5  5 5
actual performance    43 46
reduction in accident incidence rate
cumulative target since 2005  82  76  69 63  57
cumulative actual performance since 2005    92  92
group operating profit as a percentage 
of revenue  
target – not less than 45 42 4  
actual performance   35 35
how we measure our risk
principal risks and uncertainties
this annual report contains certain forward looking 
statements these statements are made by the directors in 
good faith based on the information available to them up to 
the time of approval of this report actual results may differ to 
those expressed in such statements depending on a variety 
of factors these factors include customer acceptance of the 
group’s services levels of demand in the market restrictions 
to market access competitive pressure on pricing or additional 
costs failure to retain or recruit key personnel and overall 
economic conditions 
 
a risk inherent in the contracting industry occurs in the nature 
timing and contractual conditions which exist at the time of 
contract procurement to mitigate these risks the group has 
a system of 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 in contracting management 
is required 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 should such estimates and judgements be 
incorrect then the group’s results could be materially different 
from those reported the group also seeks to limit its risks by 
specialising in certain markets where it has extensive experience 
and a particular skills base
the group derives much of its business from a relatively 
small number of major customers such as network rail 
northumbrian water wessex water welsh water national 
grid sellafield ltd and the environment agency were the 
group to lose its position as a supplier to some or all of these 
customers then the group’s financial position could be 
materially and adversely affected 
the group has two closed final salary pension schemes details 
of which are disclosed in note 24 should the actuarial deficit 
relating to one or both of these schemes materially deteriorate 
then the group could be required to make substantial payments 
into the schemes in accordance with the requirements of the 
pensions act 1995 the group has taken steps to mitigate this 
risk by working with the schemes’ trustees to develop liability 
matching investment strategies these have included both 
schemes entering into annuity policies which match the 
liabilities in respect of certain of the schemes’ beneficiaries 
at 30 september 2014 these policies are equivalent to 32 
of the combined scheme liabilities  renew holdings plc
annual report and accounts 2014
strategic report
12
investment case
a strong platform for growth
growth is delivered through the development of longterm relationships with clients responsible for the renewal and 
maintenance of essential operational assets in energy environmental and infrastructure markets 
our local businesses are aligned to respond to the ongoing maintenance needs of our clients operational assets undertaking 
work mainly through framework agreements 
since 2006 the group has delivered 
on its strategic targets including group 
operating profit and engineering 
services as a percentage of overall 
group revenue
reasons to invest in renew
consistent delivery of 
strategic targets
continued organic and 
acquisitive growth
operating in markets with 
high barriers to entry
our subsidiary businesses offer a 
range of integrated multidisciplinary 
engineering services solutions delivering 
both time and cost efficiencies
delivery of integrated 
engineering services
operating in mainly  
regulated markets 
longterm relationships 
with key clients
since 2006 our group operating margins 
have more than trebled from 1 to 35 
as our strategy of moving to engineering 
services has been fulfilled
growing operating margins strong balance sheet capital growth
the group has consistently delivered 
organic growth in its existing businesses 
and has further expanded its operations 
with two more acquisitions in the period
our target markets are mainly 
regulated which drives longterm 
programmes of spending on asset 
renewal and maintenance
the groups net assets have grown by 
161 since 2006
the markets in which we operate 
demand a highly skilled workforce and a 
proven track record of safe delivery
our range of services and responsiveness 
to our clients needs positions us as 
a key supplier our work enables our 
clients to maintain continuity of service
the group has grown its market 
capitalisation over eight fold since 
30 september 2005 without recourse 
to new equity  renew holdings plc
annual report and accounts 2014 13
strategic report
how renew grows its engineering services operations
we achieve organic growth through we achieve acquisitive growth through
  our strategy of responsiveness
  our ability to deliver locally through our 
branded businesses
  investing in the skills of our multiskilled directly 
employed workforce and employees and
  our alignment with local managers of key operational 
assets responding to critical task requirements and 
enabling required service levels to be maintained
  the acquisition of clarke telecom giving the group a 
position in the wireless telecoms infrastructure market
  the acquisition of forefront group giving the group 
a position in the gas infrastructure market and 
  consideration of complementary earnings 
enhancing opportunities renew holdings plc
annual report and accounts 2014
strategic report
14
chairman’s statement
a strong year for renew
results 
record results for the year ended 
30 september 2014 demonstrate 
the group’s continued progress as a 
leading multidisciplinary engineering 
services provider supporting critical 
uk infrastructure 
group revenue and operating profit prior 
to exceptional items amortisation and 
discontinued operations were both up 
64 to £4645m 2013 £2827m and 
£164m 2013 £100m respectively 
group operating margin was maintained 
at 35 2013 35 earnings per share 
prior to exceptional items amortisation 
and discontinued operations increased 
by 68 to 2080p 2013 1238p with 
basic earnings per share on continuing 
activities of 1683p 2013 1662p 
the engineering services business 
has seen growth across all its markets of 
energy environmental and infrastructure 
with revenue up 65 to £3825m 2013 
£2324m engineering services accounts 
for 82 of group revenue 
the largest area of growth was in our 
rail business which experienced high 
levels of demand for emergency repair 
works following last winter’s extreme 
weather conditions alongside a network 
rail “enhanced spend” programme which 
together added £647m of nonrecurring 
revenue our position with network rail 
has been recently strengthened following 
our appointment to seven control period 
5 infrastructure projects frameworks 
with an advertised value of £450m over 
the next five years 
engineering services operating profit 
has seen a 54 increase to £163m 
2013 £106m with an operating margin 
of 43 2013 46 margin reduced 
slightly as much of the additional 
nonrecurring rail revenue referred to 
above was undertaken on a cost 
reimbursable basis with a lower margin 
when the effect of the nonrecurring rail 
activity and acquisitions is excluded from 
our results engineering services 
delivered 18 growth in revenue and 22 
growth in operating profit
specialist building is predominantly 
focused on the high quality residential 
market in london and the home counties 
revenue increased by 62 to £821m 
2013 £506m and operating profit by 
69 to £22m 2013 £13m delivering 
an operating margin of 26 2013 25 
these results exclude those of allenbuild 
limited which has been treated as a 
discontinued business following its sale 
subsequent to the year end 
dividend
the board is proposing a final dividend 
of 350p per share increasing the full year 
dividend by 39 to 50p 2013 360p 
the dividend will be paid on 2 march 2015 
to shareholders on the register as at 
30 january 2015 the board continues 
to grow dividends progressively
order book
the groups contracted order book 
at 30 september 2014 stood at £439m 
2013 £364m a 21 increase with the 
engineering services order book up 20 
to £361m 2013 £301m 
acquisitions 
during the year the group made two 
complementary acquisitions in clarke 
telecom limited a market leader in 
wireless telecoms infrastructure delivery 
for £171m and forefront group ltd 
a leading provider in the gas infrastructure 
market for £148m these strategically 
summary
  record results for the year ended 
30 september 2014
  the engineering services business 
has seen growth across all its 
markets of energy environmental 
and infrastructure
  engineering services operating 
profit has seen a 54 increase 
to £163m
r j harrison obe
chairman renew holdings plc
annual report and accounts 2014 15
strategic report
important acquisitions will be accretive to 
renew’s engineering services operating 
margin as we progress towards our target 
of 5 within this business segment a key 
objective for the next financial year 
disposal
subsequent to the year end the group 
announced the disposal of allenbuild 
limited the new build affordable housing 
part of the group’s specialist building 
business to places for people group 
limited pfp for a total consideration 
of £275m payable in cash pfp has 
acquired 50 of the issued share capital 
for £1375m and will assume 100 
ownership of allenbuild after ten 
outstanding contracts for which the 
group retains the benefit reach practical 
completion which is expected to be in 
about twelve months time
cash
£24m of term loans were taken out to 
finance the group’s acquisitions at the 
year end net debt was £161m 2013 net 
cash £28m which represents only 085 
times 2014 ebitda 
people
the group prides itself on providing a 
safe and rewarding working environment 
for its highly skilled directly employed 
work force our results and ongoing 
success are a testament to the skills 
hard work and commitment of all of the 
group’s employees and the board would 
like to take this opportunity to express 
its gratitude
outlook
the group enters the 201415 financial 
year in a strong position in specialist 
building the group concentrates on 
the high quality residential market 
in london and the home counties 
our expertise is in the fit out and 
refurbishment of prestigious private 
residential projects specialising in 
developing engineering solutions for 
major structural alterations 
in engineering services the group has 
made excellent progress in expanding 
its position as a leading provider of 
engineering support services in the uks 
energy environmental and infrastructure 
markets with strong organic growth 
coupled with two acquisitions into new 
markets we operate in markets mainly 
governed by regulation that undertake 
long term programmes of essential 
nondiscretionary spending to maintain 
critical infrastructure assets the group 
continues to focus its activities on 
these programmes which deliver good 
visibility of future opportunities margin 
enhancement potential and sustainable 
earnings streams 
it remains the boards strategy to 
continue to grow its engineering 
services business both organically 
and through selective acquisitions 
the boards ambition is to grow group 
revenue to over £500m delivering a 
group operating margin of over 45 
within the next three years 
the excellent organic and acquisitive 
growth achieved in the year along with its 
record order book gives the board every 
confidence that the group will continue 
to deliver on its strategic targets
r j harrison obe
chairman
25 november 2014
232
382
2013 2014
214
2012
173
2011
127
2010
engineering services revenue £m
£382m
106
163
2013 2014
96
2012
75
2011
42
2010
engineering services operating profit £m
£163m
82 82
2013 2014
64
2012
49
2011
44
2010
engineering services  of group revenue
82 renew holdings plc
annual report and accounts 2014
strategic report
16
chief executive’s review
developing as a leading provider
renew has continued to enhance its market 
position as a provider of multidisciplinary 
engineering services successfully 
growing its engineering services both 
organically and by acquisition delivering 
long term maintenance and renewal 
services across the energy environmental 
and infrastructure markets our highly 
skilled directly employed workforce 
operates on the uk’s essential infrastructure 
assets our offering is differentiated 
by the promotion of our independently 
branded subsidiary businesses which 
are aligned to the needs of their clients 
in specialist building our activity is now 
primarily focused on the high quality 
residential market in london and the 
home counties which continues to see 
strong demand and in which we have 
many years of experience and an 
excellent reputation as a leading brand
engineering services
revenue in engineering services 
increased by 65 to £3825m 2013 
£2324m and accounts for 82 of group 
revenue 2013 82 and 88 of group 
operating profit before exceptional 
items and amortisation prior to central 
activities 2013 89 generating an 
operating margin of 43 2013 46 
the engineering services order book has 
grown 20 to £361m 2013 £301m 
during the year the group acquired 
two engineering services businesses 
which are leading brands in their 
respective markets clarke telecom 
limited “clarke” a wireless telecoms 
infrastructure delivery business based 
in manchester which provides specialist 
services for the cellular market was 
acquired in april forefront group 
limited “forefront” which is based 
near london operates across the gas 
network replacing strategic low and 
medium pressure mains was acquired 
in august clients include national grid 
and southern gas networks
these acquisitions establish the group’s 
position in additional and complementary 
engineering markets strong organic 
growth has been achieved through our 
service responsiveness and development 
of key relationships
energy
the group operates nationally in the 
nuclear traditional renewable energy 
and gas infrastructure markets
in nuclear we operate across the nuclear 
decommissioning authority’s estate 
where we are engaged on 9 sites that 
command around 80 of the £3bn annual 
expenditure over half of this spend is 
allocated to sellafield where we have 
operated for over 70 years and remain 
the largest mechanical electrical and 
instrumentation employer on site our 
work concentrates on the support and 
care of operational plant associated 
with waste treatment or processing 
decommissioning and clean up of 
redundant facilities
safety achievements at sellafield 
include over 5 million man hours 
worked since a lost time event and 
the award of sellafield’s 2014 resident 
engineers safety award for ‘outstanding 
safety performance’ 
work at the site has increased 
substantially during the year resulting 
in a 33 increase in our provision of 
resources at the site our operations 
include work on the multi discipline site 
works framework where we are aligned 
with the largest scope of work at the site 
production operations support 
as part of the high hazard risk reduction 
operations at sellafield our service 
provision has again increased on the 
evaporator delta project which is now 
expected to provide over £80m of work 
through to its completion in 2015 
a number of frameworks have also seen 
summary
  renew has continued to 
enhance its market position as 
a provider of multidisciplinary 
engineering services
  during the year the group 
acquired two engineering 
services businesses which 
are leading brands in their 
respective markets
  the engineering services order 
book has grown 20 to £361m
b w may
chief executive renew holdings plc
annual report and accounts 2014 17
strategic report
an increase in scope including the £26m 
bulk sludge retrievals framework and 
the decommissioning framework where 
we are involved with some of the oldest 
facilities on site 
the infrastructure enhancement 
programme at sellafield continues 
with the site wide asset care framework 
where we operate as sole mechanical 
and electrical partner we also continue 
to support the future major projects 
programme at sellafield where we have 
further developed our position as a key 
strategic partner on the £11bn 
infrastructure strategic alliance 
framework 
our work at sellafield was recognised with 
the award of a supply chain accreditation 
for the second year running demonstrating 
our ability to deliver to the highest quality 
standards in the nuclear industry 
elsewhere at springfields where we 
have operated for 15 years work has 
commenced for westinghouse on a 
waste processing facility following 
the recent successful completion of a 
large decommissioning and demolition 
project at the site we have also been 
recently appointed to support reactor 
outage works at the heysham nuclear 
power station we remain committed to 
developing our position as a specialist 
contractor continuing to support 
proposals within the nuclear new build 
market where we have initially focused 
on the manufacture and supply of high 
integrity fabricated components
our service teams deliver long term 
maintenance and asset renewal services 
at five of the uk’s traditional power 
stations as well as progressing a number 
of opportunities in the renewable energy 
market including hydro schemes for 
welsh water
the acquisition of forefront extends our 
range of services into the specialist 
gas infrastructure market forefront 
operates for national grid and southern 
gas networks on the 3030 iron mains 
replacement programme through 
frameworks and also on the london 
medium pressure strategic gas mains 
replacement programme forefront has 
frameworks for specialist flow stopping 
drilling and maintenance although 
forefront also has been part of the group 
for only a few months opportunities for 
collaborative working with other parts of 
the group have already been identified 
and are being progressed
environmental 
the group operates in the water 
infrastructure flood alleviation river and 
coastal defence and land remediation 
markets providing operational support 
and maintenance services
in water we continue to develop our 
long standing relationships with our 
largest clients northumbrian water 
wessex water and welsh water where 
we deliver works under the regulated 
amp 5 programme we operate on a 
number of frameworks for northumbrian 
water including the major waste water 
clean water maintenance and trunk 
mains cleaning frameworks we were 
selected as one of two preferred 
partners to deliver the accelerated flood 
alleviation workstreams that have seen 
substantial investment in the period 
we also undertake planned and 
reactive maintenance sewer lining 
and infrastructure upgrades under 
their minor works framework  renew holdings plc
annual report and accounts 2014
strategic report
18
chief executive’s review continued
engineering services continued
environmental continued
we have maintained ‘best performing 
contractor’ status with both wessex 
water and welsh water in the period 
wessex water frameworks include 
workstream partner and minor civils 
frameworks for welsh water we work 
on the pressurised pipelines framework 
which has recently been extended for 
two years and also the major civil 
engineering projects frameworks 
we have developed our relationship with 
the environment agency with the award 
of the £10m meica framework for the 
northern region this exclusive framework 
covers over 600 flood control and water 
management sites throughout the region 
and will run for 4 years to march 2018
in land remediation our long term 
relationship with national grid continues 
as we undertake work on established 
remediation frameworks nationally we 
have recently been awarded the land 
quality services framework with magnox 
for the design and construction of land 
remediation services on decommissioned 
nuclear power generation sites across the 
uk work is currently underway on the 
scotia gas networks 8 year framework 
that will generate opportunities across 
scotland and the south east of england 
until 2021
infrastructure
in the rail sector renew provides offtrack 
asset renewal and maintenance services 
nationally as well as a 247 emergency 
services to the rail network
during 2014 amco rail has responded 
to the challenges posed by the effects of 
last winter’s severe weather and additional 
works provided by the government’s fiscal 
stimulus into the rail network this has 
provided almost £65m of nonrecurring 
revenue in the year in addition to 
underlying organic growth of 17 
amco rail is increasingly recognised by 
network rail for its responsiveness to 
short term low cost critical tasks and 
this is demonstrated by 5000 individual 
remits carried out during the year on the 
asset management frameworks across 
the network amco rail is now one of the 
top 10 suppliers to network rail
our success in responding to and 
managing this additional workload has 
been recognised by network rail appointing 
amco rail to seven infrastructure projects 
frameworks for control period 5 with an 
advertised value of £450m over the next 
five years
key projects carried out in the year 
included the reinstatement of the dawlish 
sea wall which was completed ahead of 
schedule enabling services to resume to 
cornwall our specialist skills in tunnel 
and shaft maintenance and refurbishment 
saw us successfully complete major 
schemes at holme tunnel and whiteball 
tunnel both of which were on time and 
within budget
the acquisition of clarke takes the group 
into a new market as a leading provider of 
wireless telecoms infrastructure services 
clarke’s clients include all of the major 
wireless network operators and original 
equipment manufacturers integration 
with the group has progressed well since 
acquisition and clarke’s order book has 
grown by over 10 since acquisition 
specialist building
specialist building results have been 
restated following the reclassification 
of allenbuild ltd as a discontinued 
business details of which are set 
out below  renew holdings plc
annual report and accounts 2014 19
strategic report
specialist building continued
an operating profit of £22m 2013 £13m 
was generated from revenue of £821m 
2013 £506m giving a margin of 26 
2013 25 our specialist building order 
book stands at £781m 2013 £625m 
in the high quality residential market in 
london and the home counties we have 
over 50 years of experience and specialist 
engineering expertise in carrying out 
major structural alteration works 
including extensions below the ground 
during the year we completed projects 
for private clients at wimbledon village 
and on the wentworth estate surrey 
work is currently under way to demolish 
and reconstruct a substantial country 
home in burnham beeches and on a 
grade ii listed residence in london’s 
belgravia district 
subsequent to the year end we announced 
the sale of allenbuild ltd our subsidiary 
business which focused on the new build 
affordable housing market to places 
for people group limited “pfp” pfp 
has acquired 50 of the issued share 
capital for £1375m and will assume 
100 ownership of allenbuild after ten 
outstanding contracts for which the 
group retains the benefit reach practical 
completion which is expected to be in 
about twelve months time pfp will have 
the benefit of four new contracts and any 
further work which is now procured 
people
our commitment to the safety of our 
employees and those who work with us 
remains a priority for everyone at renew 
the changing nature of our operations 
into smaller high volume tasks has 
seen an increase in behavioural safety 
training alongside a wide range of safety 
initiatives undertaken over the year 
we are pleased to report a cumulative 
reduction in our accident incidence rate 
of more than 90 over the last 9 years
summary
our specialist building business has 
demonstrated its ability to deliver 
consistent profits and is well positioned 
with a strong order book
in engineering services our range of 
capabilities and responsiveness to our 
clients’ needs sees us operate on some 
of the largest programmes of work 
to maintain key infrastructure assets 
in the uk 
we are strongly positioned in sustainable 
markets which are mainly regulated and 
which benefit from long term spending 
programmes this will continue to provide 
opportunities for further profitable growth
b w may
chief executive
25 november 2014 renew holdings plc
annual report and accounts 2014
strategic report
20
financial review
results
group revenue from continuing 
activities was £4645m 2013 £2827m 
with an operating profit before tax from 
continuing activities of £164m 2013 
£100m prior to exceptional items and 
amortisation charges and the loss from 
the discontinued operation a tax charge 
of £33m 2013 £23m resulted in a 
profit after tax for the year of £128m 
2013 £74m prior to exceptional items 
and amortisation charges and the loss 
from the discontinued operation after 
tax exceptional items and amortisation 
the profit for the year from continuing 
activities was £103m 2013 £100m
restatement of 2013 results
as a result of both the adoption of ias 19 
2011 and the treatment of allenbuild 
limited as a discontinued business in 
accordance with ifrs 5 there has been 
a restatement of the 2013 results
discontinued operation
subsequent to the year end the board 
reached an agreement to sell allenbuild 
limited to places for people group 
limited “pfp” for a total consideration 
of £275m payable in cash pfp acquired 
50 of the equity on 31 october 2014 for 
£1375m and will acquire the balance of 
the shares when ten outstanding partly 
completed contracts reach practical 
completion this is expected to be in 
about a year’s time during the joint 
ownership period renew will retain 
the benefit of those contracts and 
pfp will enjoy the benefit of new work 
procured allenbuild limited is a business 
focused on the new build affordable 
housing market and as such was not 
core to the group’s strategy to develop 
its engineering services business in 
accordance with ifrs 5 the results of 
allenbuild limited have been treated 
as a discontinued business resulting 
in the restatement of the 2013 income 
statement and its disclosure in “assets 
held for resale” on the consolidated 
balance sheet
exceptional items
exceptional items recognised during the 
year comprise £08m of costs incurred 
in relation to the acquisitions of clarke 
telecom limited and forefront group 
limited additionally £22m 2013 £05m 
of amortisation charges relating to the 
intangible assets arising from the amco 
clarke lewis and forefront acquisitions 
were incurred
acquisitions
during the year the group completed the 
acquisitions of clarke telecom limited 
and forefront group limited for a combined 
consideration of £329m inclusive of costs 
payable in cash these acquisitions were 
funded by a £24m term loan which is 
repayable in equal quarterly instalments 
of £155m the last instalment of which is 
due to be paid on 31 march 2018 £89m 
of the group’s own cash resources were 
also deployed in these transactions 
in march 2014 the final instalment on 
the group’s previous term loan which 
had been used to acquire amalgamated 
construction limited was repaid
the group’s profitability together 
with further improved working capital 
generation has led to our reporting a 
cash balance of £56m 2013 £53m at 
the year end as a result the group’s net 
debt position as at 30 september 2014 
was £161m 2013 net cash of £28m 
the group has complied with the 
covenants associated with the term 
loans throughout the year 
summary
  a final dividend of 35p 2013 25p 
per share brings the total for the 
year to 50p 2013 36p
  subsequent to the year end the 
board reached an agreement to 
sell allenbuild limited
dividend growth of 39 renew holdings plc
annual report and accounts 2014 21
strategic report
pension schemes
the ias 19 valuation of the lovell pension 
scheme which was closed to new members 
in 2000 has resulted in a small accounting 
surplus of £06m 2013 deficit of £28m 
after accounting for deferred taxation 
in 2011 the board in conjunction with the 
trustees of the lovell scheme completed 
a buyin of part of the pensioner liabilities 
of the scheme this measure which was 
completed without any further cash 
contribution to the scheme by the group 
has reduced the risks associated with 
those liabilities and at the year end 
the annuities purchased represent 
30 of the scheme’s total liabilities 
in accordance with the scheme specific 
funding requirements of the pensions act 
2005 and following the triennial valuation 
of the scheme which was carried out 
as at 31 march 2012 the board has 
an  agreement with the trustees of the 
scheme on the level of future contributions 
which are currently approximately £29m 
per annum the next triennial valuation is 
due as at 31 march 2015 
the ias 19 valuation of the amco 
pension scheme shows a surplus of 
£06m 2013 £08m after accounting 
for deferred taxation in 2013 the board 
in conjunction with the trustees of the 
amco scheme completed a buyin of part 
of the pensioner liabilities of the scheme 
this measure which was completed 
without any further cash contribution to 
the scheme by the group has reduced 
the risks associated with those liabilities 
and at the year end the annuities 
purchased represent 51 of the scheme’s 
total liabilities in accordance with the 
scheme specific funding requirements of 
the pensions act 2005 and following the 
triennial valuation of the scheme which 
was carried out as at 31 december 2010 
the board has an agreement with the 
trustees of the scheme on the level of 
future contributions which are currently 
£02m per annum the next triennial 
valuation which will be measured as 
at 31 december 2013 is currently being 
carried out by the scheme actuary 
as a result of the adoption of ias 19 2011 
approximately £04m of costs are now 
charged to administrative expenses 
in the income statement these were 
previously treated as a contribution to the 
pension scheme and accounted for in the 
statement of comprehensive income
taxation
the uk tax charge on profit for the year is 
£37m 2013 £33m the deferred tax charge 
of £12m 2013 £12m is wholly offset by 
deferred tax attributable to the discontinued 
business resulting in a tax charge on 
continuing activities of £27m 2013 £3 1m 
this represents an effective group tax rate 
of 208 2013 236 following the sale 
of allenbuild limited the group’s available 
tax losses have been reduced although due 
mainly to the tax deductibility of pension 
scheme contributions which are not charged 
to the income statement the rate of 
corporation tax payable in each of the next 
few years is expected to remain below the 
headline rate
distributable profits
the distributable profits of renew holdings 
plc stood at £27 9m 2013 £205m enabling 
the board to recommend a final dividend 
of 35p 2013 25p per share bringing 
the total for the year to 50p 2013 36p 
an increase of 39
j samuel
group finance director
25 november 2014 renew holdings plc
annual report and accounts 2014
strategic report
22
operational review
this section looks at the 
group’ s target markets and 
highlights our achievements 
during the year
in this section
24  energy
28  environmental
32  infrastructure
36  specialist building renew holdings plc
annual report and accounts 2014 23
strategic report
paul scott
engineering services director
renew concentrates on delivering engineering services in the 
energy environmental and infrastructure markets our work 
in areas such as rail nuclear water telecoms and gas sees us 
operating nationally for high profile clients where our service 
teams undertake a wide range of essential maintenance and 
renewal tasks ensuring continuity of service of some of the uk’s 
critical infrastructure assets
the markets in which we operate provide the group with good 
visibility of future opportunities the work we undertake is often 
delivered through longterm framework agreements our position 
on these frameworks a large number of which extend over many 
years is established through our responsiveness to clients’ 
needs and a safe and consistent service delivery 2014 has seen 
a number of these key frameworks renewed
we focus on our key relationships and extending our engineering 
services capabilities to increase our opportunities in areas of 
nondiscretionary infrastructure spending in the uk we have 
seen good progress in our strategy of developing engineering 
services through 2014 where we have extended our range of 
services with two complementary acquisitions in clarke telecom 
and forefront group development of our collaborative solutions 
remains a key strategic target for the coming year 
this operational review looks at our achievements in 2014 and 
outlines our objectives for the coming year which alongside the 
group’s strategy gives the group a strong platform for growth 
over the medium and long term
p scott
engineering services director
25 november 2014 renew holdings plc
annual report and accounts 2014
strategic report
24
operational review – energy
expertise
  nuclear operational support and asset care
  critical planned and reactive maintenance and renewals 
  civil mechanical and electrical engineering services
  nuclear decommissioning
  specialist fabrication and manufacturing
  we are strongly positioned across the nda portfolio on 9 
nuclear licensed sites that command around 80 of the 
total site expenditure
  we remain the largest mechanical electrical and 
instrumentation employer on site at sellafield where we 
have operated for over 70 years during the year we 
increased our resources at the site where we operate on 
9 frameworks by 33
  we have seen increasing workload as 1 of 3 preferred 
strategic partners on the multi discipline site works 
framework at sellafield where we undertake work 
packages potentially worth £280m over 4 years we are 
aligned with the largest scope of work at the site 
production operations support
  at sellafield our service provision has again increased 
on the evaporator delta project which is now expected 
to provide over £80m of work through to its completion 
in 2015
opportunity
the nuclear decommissioning authority “nda” is 
responsible for the cleanup and waste management of the 
uk’s nuclear legacy with 17 sites nationally the nda’s total 
planned expenditure for 201415 is around £3bn over half 
of this is allocated to sellafield where work continues to 
focus on high risk and high hazard reduction operations
1
an estimated investment of around £60bn is expected in 
new nuclear power stations in the uk by 2030 as most of the 
existing fleet of nuclear power stations are retired
2
how we respond
our operations principally focus on the ongoing programmes 
of high hazard risk reduction engineering support on the care 
and maintenance of operational plant associated with waste 
treatment or processing decommissioning demolition and 
cleanup of redundant facilities where our engineering services 
are delivered by our directly employed multiskilled 
operatives we continue to differentiate ourselves through the 
integration of generation grid and decommissioning services
nuclear
we deliver a range of integrated engineering services 
to the nuclear industry our work concentrates on 
high hazard risk reduction operations supporting the 
maintenance and decommissioning of operational plant
our progress in the uk nuclear market
12 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 25
strategic report
our progress in the uk nuclear market
  framework activity at sellafield includes work on the £26m 
bulk sludge retrievals framework recently extended by 
1 year to 2015 and the decommissioning framework where 
we are involved with some of the oldest facilities on site
  as part of the infrastructure enhancement programme at 
sellafield we undertake work on the site wide asset care 
framework as sole mechanical and electrical partner
  we continue to support the future major projects programme 
at sellafield where we have further developed our position 
as a key strategic partner on the £11bn infrastructure 
strategic alliance framework
  we have undertaken 5 million man hours since a lost time 
event at sellafield where our safety achievements include 
the award of the 2014 resident engineers safety award 
for “outstanding safety performance” 
  for the second year running we have been awarded 
sellafield’s supply chain accreditation demonstrating 
our ability to deliver the highest quality standards in the 
nuclear industry consistently 
  we continue to progress development of our position 
as a specialist contractor supporting proposals within 
the nuclear new build market where we have initially 
focused on the manufacture and supply of high integrity 
fabricated components
  elsewhere in nuclear at springfields work is underway 
for westinghouse on a waste processing facility project 
which follows the recent successful completion of a large 
decommissioning and demolition project at the site where 
we have operated for 15 years
  we were recently appointed to support reactor outage 
works at the heysham nuclear power station
  we currently operate on 5 of the 10 magnox nuclear sites 
on an electrical control and instrumentation framework
  successfully completed projects in the year include the 
electrical overlay scheme at dungeness ‘a’ power station 
for magnox ltd renew holdings plc
annual report and accounts 2014
strategic report
26
operational review – energy continued
traditional renewable 
and gas infrastructure
we provide longterm maintenance and asset renewal 
support at many of the uks traditional power generation 
plants through established framework agreements
  operational support and asset care in the traditional 
and renewable energy markets
  critical planned and reactive maintenance and renewals
  civil mechanical and electrical engineering
  gas distribution network asset maintenance 
replacement and installation
  specialist flow stopping drilling and internal inspection
expertise
as demand for energy increases it is likely that the life of some 
of the uk’s existing traditional generation assets will be extended 
requiring investment in longterm maintenance programmes
demand for renewable energy is expected to increase 
following the governments commitment to deliver 15 of the 
uk’s energy consumption from renewable sources by 2020
3
as part of ongoing improvements to the gas network the uk 
is currently undertaking a number of essential gas network 
asset replacement programmes following concerns over 
iron gas mains safety the health and safety executive 
has implemented the national iron mains risk reduction 
programme to replace gas mains within 30 metres of a 
building by 2032 or earlier
4
opportunity
operating at the uk’s traditional power plants our directly 
employed service teams provide longterm maintenance 
and asset renewal support our integrated mechanical 
electrical and civil engineering solutions assist in the 
continued operation of these key infrastructure assets
we work for clients across the gas distribution network 
replacing low and medium pressure and other complex 
strategically important gas mains clients include triio 
a strategic partner of national grid and southern gas 
networks operating as one of the major service providers 
in the south of england our directly employed 350 strong 
workforce repairs replaces and maintains over 150km of 
gas mains per annum
how we respond
34 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 27
strategic report
  we operate at 5 of the uk’s traditional power stations for 
clients eon eggborough power limited and sse where 
our service teams deliver longterm maintenance and 
asset renewal services 
  our operations in both the on and offshore wind energy 
market continue to progress including projects for offshore 
repairs and a recently secured manufacturing opportunity
  we continue to support the development of hydro schemes 
for a number of clients including welsh water
  we successfully extended our range of services into the 
specialist gas infrastructure market with the acquisition 
of forefront group
  we currently undertake 150km of gas main replacement 
per year across southern gas network and national grids 
distribution networks as part of the 3030 iron mains 
replacement programme 
  appointed on stage 1 of a 15 year strategic replacement 
programme of large diameter medium pressure gas mains 
in central london
  additional frameworks with triio cover specialist flow 
stopping drilling and maintenance 
  we also undertake emergency leakage repairs for national grid
our progress in traditional renewable and gas infrastructure markets in the uk renew holdings plc
annual report and accounts 2014
strategic report
28
operational review – environmental
water
the group has extensive expertise in water infrastructure 
development and maintenance flood alleviation and river 
and coastal defences where a large portion of work is 
procured under longterm framework agreements many 
of these with repeat clients
  operational support and asset care to the water industry
  critical planned and reactive maintenance and renewals
  civil mechanical and electrical engineering
  maintaining strategic water mains and main drainage
  clean and waste water rehabilitation infrastructure
  flood alleviation and attenuation
  port harbour and sea defences
expertise
uk water companies regulated by the water services 
regulation authority “ofwat” undertake large 
scale investment programmes to maintain and renew their 
water and sewerage infrastructure assets work on asset 
management programme 6 the next 5 year regulatory 
period in the water industry is due to commence in april 
2015 and will focus on maximising the efficient use of 
existing assets through integrated solutions 
the uk government has made an unprecedented six year 
commitment to invest record levels in improving 
flood defences up to 2021
5
opportunity
as a multidisciplinary service provider we undertake a wide 
range of water infrastructure development work mainly 
under longterm framework agreements many of these with 
repeat clients in the north east wales and the south west 
we partner on frameworks delivering improvements to the 
water infrastructure network where our work includes 
mains replacement upgrades to the sewer network and 
storm water retention schemes 
the group has specialist capabilities in innovative trunk 
mains cleaning of the underground water pipe network 
work is carried out by our highly trained directly employed 
workforce utilising our extensive specialised plant fleet
how we respond
5 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 29
strategic report
our progress in the uk water market
  we continue to develop long standing relationships 
with northumbrian water wessex water and welsh water 
for which we deliver works under the regulated 
amp 5 programme
  we operate on a number of frameworks for northumbrian 
water including the amp 5 major waste water framework and 
clean water frameworks as well as on nondiscretionary 
maintenance and trunk mains cleaning frameworks
  during the year we were selected as one of two preferred 
partners by northumbrian water to deliver the 
accelerated flood prevention work streams which have 
seen substantial investment in the period
  work continues on the framework 4 minor works 
framework which sees us undertake planned and reactive 
maintenance sewer lining and infrastructure upgrades for 
northumbrian water
  innovation on northumbrian water’s trunk mains cleaning 
frameworks including ice pigging techniques has delivered 
time and cost efficiencies 
  work continues to develop our position on northumbrian 
water’s amp 6 programme of works having worked on all 
previous amp programmes
  the integration of lewis civil engineering acquired in 
2013 has been very successful and extends our range 
and capabilities in the water market
  lewis also adds a particular specialism to the group with 
their expertise in trenchless technology
  we have maintained “best performing contractor” status 
with both wessex water and welsh water in the period
  successfully completed projects include a major project 
at taunton for wessex water
  wessex water frameworks include workstream partner 
and minor civils
  frameworks for welsh water include the pressurised 
pipelines framework recently extended for two years 
and the major civil engineering projects frameworks
  we have developed our relationship with the environment 
agency with the successful award of the £10m meica 
framework for the northern region this exclusive framework 
covers over 600 flood control and water management sites 
throughout the region and will run for 4 years to march 2018  renew holdings plc
annual report and accounts 2014
strategic report
30
operational review – environmental continued
land remediation
renew is a leading provider of sustainable land remediation 
services nationwide with over 30 years’ expertise in specialist 
soil and groundwater remediation and associated earthworks 
expertise
  operational support and asset care in the land 
remediation market
  critical planned and reactive maintenance and renewals
  civil mechanical and electrical engineering
  soil and groundwater remediation
opportunity
the homes and communities agency “hca” is responsible 
for the disposal of publicly owned land including former 
industrial land transferred from the former regional 
development agencies 
the hca corporate plan 2014–2018 includes specific 
targets in relation to the use of such legacy sites and 
funding arrangements to achieve economic growth and 
to provide suitable and sufficient housing stock across 
the uk and to stimulate strategic inward investment
6
how we respond
we are a leading provider of sustainable land remediation 
services nationwide developing and deploying a range of site 
based remediation techniques we work to remove costs 
associated with the redevelopment of previously used land
our land remediation services concentrate on the enabling and 
infrastructure works to allow the hca targets to be achieved our 
inhouse capabilities include soil washing biophysical treatment 
solidification and stabilisation enhanced segregation and 
geotechnical improvements our ability to recover up to 100 
of soils and excavated materials including manufacturing high 
value aggregates on site can provide a sustainable and cost 
effective solution for our clients 
6 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 31
strategic report
our progress in the uk land remediation market
  successful projects in the period include the delivery of 
a second major commonwealth games scheme for clyde 
gateway at shawfields throughout 201314 involving the 
in situ treatment of contaminated ground water
  we continue to develop our opportunities in scotland 
during 2014 we opened an office in cumbernauld to 
further develop our presence in this region
  project awards in the period include schemes at barnsley 
and preston under the national grid’s gasholder 
dismantling and infilling framework which provides 
opportunities to 2016
  we have been awarded the land quality services 
framework with magnox for the design and construction 
of land remediation services on decommissioned nuclear 
power generation sites across the uk
  our longterm relationship with national grid continues 
as we undertake work on a number of established 
remediation frameworks nationally
  work is currently underway on the scotia gas networks 
8 year framework that will generate opportunities across 
scotland and the south east of england until 2021
  a number of collaborative projects between group 
businesses were undertaken in the year including scour 
protection schemes renew holdings plc
annual report and accounts 2014
strategic report
32
operational review – infrastructure 
expertise opportunity
how we respond
  offtrack operational support and asset care
  critical planned reactive and 247 emergency 
maintenance and renewal services
  civil mechanical and electrical engineering
  asset renewal and refurbishment
  tunnel and shaft refurbishment
  bridges structures and earthworks
  moving structures
demand for rail services is anticipated to grow by more 
than 30 over the next decade 
to meet this challenge network rail are investing around 
£38bn over the next five years to 2019 cp5 on running 
maintaining and improving britain’s railway which includes 
some 30000 bridge tunnel and embankment assets
7
as part of this longterm programme of works our business 
is closely aligned to deliver a high volume of small value 
tasks across the rail network including civil mechanical 
and electrical engineering and maintenance services 
nationally in this regulated market 
our strength lies in our flexibility and ability to deliver a 
variety of integrated and sustainable solutions for our 
clients who include network rail train operating companies 
and major contractors within the rail industry 
our specialist skills combined with our 247 emergency 
response services are undertaken by our directly employed 
multiskilled local delivery teams
rail
our specialist skills combined with our 247 emergency 
response services are undertaken nationally by our 
directly employed multiskilled local delivery teams
7 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 33
strategic report
our progress in the uk rail market
  we have seen another record year for our work in rail with 
a substantial increase in activity across the entire work 
portfolio with network rail
  we secured a position on network rail’s infrastructure 
projects frameworks under cp5 for the central north east 
and scotland regions which will see us deliver an extensive 
portfolio of renewals maintenance and enhancements with 
an advertised value of £450m over the next 5 years
  we continue to align our business with our largest client 
network rail’s operational structure resulting in 
increased opportunities
  workload increased on our national asset management 
frameworks for network rail during 2014 where we undertook 
approximately 5000 individual remits over the period
  we undertook work on the building and civils delivery 
partnership for network rail across all 4 infrastructure 
projects delivery regions
  as part of control period 4 we secured a large portion 
of the investment on the economic stimulus programme 
a government initiative to stimulate the economy in 
various regions
  working nationally across the rail network our local delivery 
teams continue to provide a 24 hour emergency response 
service for network rail which has seen substantial demand 
in the period including emergency works at dawlish in devon 
where storms caused extensive damage to the track and 
surrounding infrastructure
  our specialist skills in tunnel and shaft maintenance 
and refurbishment saw us successfully complete major 
schemes at holme tunnel and whiteball tunnel for 
network rail renew holdings plc
annual report and accounts 2014
strategic report
34
operational review – infrastructure continued
wireless telecoms
expertise
  operational support and asset care in the uk wireless 
telecoms market
  critical planned and reactive maintenance and renewals
  civil mechanical and electrical engineering
  wireless telecoms installations
  specialist indoor wireless coverage solutions 
  special events temporary cellular network coverage
  provision of 2g 3g 4g and wifi technologies
opportunity
research undertaken for the market regulator ofcom 
estimates that demand for mobile data could be as much as 
80 times higher than today by 2030 as the market continues 
to expand with growth largely driven by the increasing use 
of mobile devices and internet services 
as demand for service on the existing mobile network 
infrastructure increases substantial investment 
is expected to add new infrastructure upgrade existing 
networks and decommission redundant assets 
ofcom set a 2017 deadline for network operators 
to provide comprehensive 2g 3g and 4g coverage 
across the country
8
how we respond
we provide specialist wireless infrastructure services for 
the uk’s cellular network operators and major network 
equipment manufacturers where our work includes the 
acquisition design and construction of sites the 
installation and commissioning of the equipment and 
connection to the networks we undertake all aspects of 
site maintenance and decommissioning with the majority of 
work contracted through framework agreements
we provide engineering services encompassing all 
aspects of wireless telecoms infrastructure delivery 
including site acquisition and design construction 
installation and site optimisation as well as site 
maintenance and decommissioning
8 see page 7 for footnotes renew holdings plc
annual report and accounts 2014 35
strategic report
  the acquisition of clarke telecom expands our range of 
services into the wireless telecoms infrastructure market
  as a leading provider of wireless telecoms infrastructure 
services we remain one of the top performing contractors with 
all of our customers such as cornerstone telecommunications 
infrastructure ltd and mobile broadband network limited 
joint ventures between the network operators which see them 
consolidate their uk asset portfolios carrying the o2 3 
vodafone and ee networks
  we work on the ee network where we continue with the 2g 
and 4g upgrade rollout of low capacity sites
  work continues on the rollout of ericsson 4g equipment 
to network operators main sites in london 
  we are sole supplier for 4g overlay for ericsson as the only 
approved service provider 
our progress in the uk wireless telecoms market renew holdings plc
annual report and accounts 2014
strategic report
36
operational review – specialist building
high quality residential
recognised as a leading quality provider in the fitout and 
refurbishment of prestigious private residential projects 
in and around london with specialist skills in developing 
engineering solutions to both extend properties below 
ground and to carry out major structural alterations
expertise
opportunity
how we respond
  refurbishment of prestigious private residences
  specialist temporary works design and engineering
  major structural works both above and below the ground
the high quality residential market in london and the home 
counties remains strong with improved visibility we have 
particular specialist engineering expertise in carrying out 
major structural alteration works
this market requires knowledge and experience walter lilly 
has a strong brand and an excellent reputation developed 
over many years in this market
we focus on the high quality residential market in london 
and the home counties we are recognised as a leading 
quality provider with expertise in fitout and refurbishment 
of prestigious private residential projects in and around 
london our particular skills in listed and historical 
buildings and challenging structural works provide a 
differentiator in this market
our inhouse specialist temporary works design and 
engineering capabilities are able to provide innovative 
solutions when extending properties below ground and 
carrying out major structural alterations our other 
services include design management planning traffic 
management and logistics support as well as expertise 
in specialist finishes
our progress in the uk high quality residential market
  completed projects include a 4 storey extension project in 
wimbledon village and a £9m project on the wentworth 
estate surrey both for private clients 
  a £6m residential fit out project for a private client 
was also completed at the manresa road development 
in chelsea 
  work is under way on a £67m project to demolish and 
reconstruct a substantial country home in burnham 
beeches and on an £82m grade ii listed residence in 
london’s belgravia district to consolidate two apartments
  we have secured in excess of £60m of projects for the 
201415 period renew holdings plc
annual report and accounts 2014 37
strategic report renew holdings plc
annual report and accounts 2014
strategic report
38
board approval
this strategic report was approved by the board on 25 november 2014 and is signed on its behalf by
b w may
chief executive
25 november 2014 renew holdings plc
annual report and accounts 2014 39
corporate governance
committed to our social and 
environmental responsibilities
we balance our operations with consideration 
for our environment and the communities in 
which we operate
renew’s corporate social responsibility in 2014 
we strive to ensure our activities are carried out with sensitivity limiting 
their impact whilst seeking to maximise the benefits of our work beyond 
compliance with minimum legal requirements our responsibility to our 
employees the communities in which we operate as well as our clients 
consultants and supply chain is integral to the work we undertake
community engagement and charitable giving
our businesses recognise the importance 
of becoming valued members of the 
communities in which they operate and 
our teams work hard to engage with local 
communities and build relationships the 
impact of our work on the local community 
is carefully considered in a projects design 
and planning stages with consultation and 
communication undertaken as necessary 
many of our sites use channels such as 
notice boards and newsletters to keep local 
people informed 
getting involved in the community extends 
beyond that of our commercial operations 
during the year our businesses have been 
involved with many schemes volunteering 
both time and resources as well as financial 
assistance to various community projects 
at vhe the shawfields project team in 
scotland helped a local school by installing 
foundation pads for a new school cabin vhe 
also sponsored hoyland magpies under1 1 
football team in the year
clarke telecom has sponsored a number of 
local sports groups who provide activities 
and learning opportunities within the 
community as well sponsoring kit for the 
afc oldham ladies 2013–14 season 
further afield a number of graduates and 
trainees from walter lilly took part in the 
“all out africa build a future” project 
where volunteers travel to swaziland 
south africa to help rural communities 
undertake building projects 
shepley engineers supports a range of 
community schemes in cumbria as well as 
volunteering apprentices to work on projects 
for the calvert t rust also supporting the 
calvert t rust seymour completed the 2014 
“kielder quest” an annual corporate 
fundraiser where the team competed in a 
series of physical and mental challenges 
against other organisations from the region 
britannia construction signed up to the 
armed forces corporate covenant where 
businesses show their support for the 
armed forces community volunteers from 
seymours t runk mains cleaning team as 
part of northumbrian water’s “ just an hour” 
initiative worked on a scheme to assist in 
the cleanup of sugley dene in newcastle 
upon tyne
many of our businesses undertook 
fundraising work for their chosen charities 
during the year at walter lilly staff and 
consultants participated in a cyclothon 
event raising money for the butterfly t ree 
children’s charity and the rugby football 
union injured players foundation at vhe 
employees raised money for a number 
of charities including the macmillan 
charitable trust
shepley engineers supported the 
cumbria community foundation that 
raises money to help improve the quality 
of life for disadvantaged people in the 
local community britannia construction 
supported the milestone school in 
gloucester a community special school 
that provides for children with special 
educational needs as well as gear projects 
a charity helping homeless people in the 
gloucester area 
as corporate partner to the hartlepool 
and district hospice seymour organised 
a number of fundraising events including 
a charity ball and a gruelling 2 day 153 mile 
coast to coast cycle ride from cumbria to 
hartlepool clarke telecom supported 
children in need raising money through 
cake bakes and “pudsey email bingo” as well 
as supporting dr kershaw’s hospice a local 
charity that provides a specialist care facility 
for adults with life limiting illnesses at amco 
site teams raised money for various charities 
throughout the year including help for 
heroes lewis participates in the wessex 
for west africa initiative a scheme designed 
to raise money for wateraid
other charities supported across the 
group in the year include the british 
heart foundation guide dogs royal 
national lifeboat institution yorkshire 
air ambulance bradford toy library and 
resource centre and ilkley candlelighters
corporate social responsibility
corporate governance renew holdings plc
annual report and accounts 2014
corporate governance
40
our commitment to improving the safety 
performance of our operations continued 
throughout 2014 and remains a key focus 
for the group ensuring the safe working 
practices of our employees subcontractors 
and those who work with us underpins the 
work we undertake and 2014 saw us 
consolidate a nine year improvement in our 
accident incidence rate to over 90
safety is managed across renew by the 
safety and environmental management 
group which coordinates activities and 
liaises with our team of locally based safety 
advisors working as part of an overall safety 
team our advisors are encouraged to share 
specialist knowledge and best practice 
from their individual often unique working 
environments one of the most challenging 
areas the group operates in is the nuclear 
environment we have completed over 
5 million man hours of operations at the 
sellafield site in cumbria since a lost time 
accident safety achievements were 
recognised by sellafield with the award of 
the 2014 resident engineers safety award 
for “outstanding safety performance” to our 
subsidiary shepley engineers elsewhere 
we have undertaken 1 1 years at magnox 
sites in the uk and 15 years on eon uk sites 
without a lost time accident
the ongoing work to improve our safety 
performance includes various initiatives 
which reflect the specialist environments 
in which our businesses operate the 
changing nature of our activities with an 
increase in smaller teams often working 
remotely has been recognised by an 
increased emphasis on behavioural safety 
training during the year schemes are 
designed to support the development 
of our safety culture and encourage 
open discussion within the business 
helping to identify where improvements 
can be achieved
examples of our safety initiatives include 
the continual monitoring of sites through 
cross business inspections and audits 
our businesses undertake safety 
workshops and campaigns such as our 
safety whiteboard and “you said we did” 
schemes working closely with our client 
our rail business has adopted network rail’s 
“life saving rules” campaign as part of its 
safety culture we implement ongoing 
programmes of safety and awareness 
training for employees and personnel 
who work alongside us a number of our 
subsidiaries also present safety awards 
annually within their businesses to ensure 
safety remains the top of everyone’s agenda
it is important our subcontractors are 
engaged with our safety objectives and 
we work closely with them to align our 
safety cultures initiatives include our 
supplier safety forums which have been 
ongoing during 2014
many of our businesses continued to 
be accredited and approved with various 
health and safety schemes including the 
contractors health and safety assessment 
scheme constructiononline and 
safecontractor
environment and sustainability
corporate social responsibility continued corporate social responsibility continued
safety
92
cumulative reduction in 
accident incidence rate 
over the last 9 years
5 years 
since a lost time 
accident at sellafield
we are committed to considering 
the environment in which we operate 
we develop and apply systems of 
environmental management as an 
integral part of our operational practice 
alongside management reporting and 
control procedures we work with 
industry bodies business partners 
and other organisations to promote 
environmental care increase our 
knowledge and disseminate best 
practice within our businesses 
our business’ environmental management 
systems provide a framework for establishing 
and reviewing objectives monitoring and 
communicating our requirements as well 
as monitoring our environmental impact 
and are regularly assessed across all 
levels of our business environmental 
impacts such as the disposal of waste 
to landfill and the release of carbon 
emissions are measured and managed 
innovative working practices such as the 
use of “emissions buster” technology to 
reduce the use of generators and fuel on 
site with the automatic charging of battery 
packs to deliver power to site systems at 
night produce efficiencies as well as  
quieter nights for local residents
schemes designed to encourage our 
employees and subcontractors to adopt 
sound environmental understanding and 
practices use a mixed programme of 
training and awareness which aims to instil 
behavioural change internally within our 
business examples include initiatives to 
reduce emissions through the hire lease 
and procurement of more efficient plant 
equipment and motor vehicles and through 
the use of energy from renewable sources 
within our offices externally schemes 
include the assessment of subcontractors 
where performance against environmental 
targets are measured all our businesses 
systems are accredited to iso14001 
“ we develop and apply 
systems of environmental 
management as an integral 
part of our operational 
practice alongside 
management reporting 
and control procedures” renew holdings plc
annual report and accounts 2014 41
corporate governance
our businesses provide a range of 
training and employment opportunities 
including occupational and professional 
apprenticeships scholarships work 
experience and management training 
programmes in partnership with the local 
communities in which they operate   
vhe offers employment to a number 
of geoenvironmental and quantity 
surveying students during their placement 
year as well as apprenticeships 
recognising the need for investment 
in traditional electrical and mechanical 
engineering skills shepley engineers 
and amco continue to extend their craft 
apprenticeship training programmes 
walter lilly remains committed to 
encouraging young people into the 
industry and has now been successfully 
sponsoring students from loughborough 
university for over 15 years disciplines 
include design management 
construction management and quantity 
surveying walter lilly also provides work 
experience opportunities for year 11 and 
12 pupils from three local schools in the 
croydon area 
britannia construction undertakes civil 
engineering apprenticeships offering 
formal training to develop industry skills 
and experience
seymour continues as part of a 
memorandum of understanding between 
st hild’s school hartlepool college of 
further education and construction 
skills that supports pupils and staff 
through placement and promotes 
civil engineering seymour has also 
seen 9 engineers successfully complete 
the institute of civil engineering 
technician qualification 
at vhe and clarke telecom employees 
undertake ongoing programmes of 
training including specialist equipment 
training relevant to their site experience 
“ many of our businesses 
demonstrate sustainable 
working practices 
employing local people 
on their projects”
employment and training
royal society for the prevention of accidents “rospa” 
  vhe awarded a rospa presidents award for the third year 
running following twelve consecutive gold awards
  pps electrical ltd awarded a president’s award 
in recognition of achieving 14 gold awards
  shepley engineers awarded a rospa sector commendation
  west cumberland engineering awarded a second rospa 
gold award
  britannia construction awarded a gold medal in recognition 
of achieving 5 consecutive gold awards 
other awards
  a team which included seymour and a number of 
northumbrian water suppliers took the top award at the 
institute of civil engineers’ north east robert stephenson 
awards in the under £4m category for a project at barkers 
haugh sewage treatment works in durham
  pps electrical ltd was awarded the 2014 sellafield resident 
engineers safety award for “outstanding safety performance” 
at the sellafield site in cumbria
  clarke telecom has won a prestigious british safety council 
international safety award for 2014 this award is given to 
organisations in recognition of their proven commitment to 
workplace health and safety
  lewis civil engineering was presented with a highly 
commended award for best innovative idea at the dwr 
cymru welsh water occupational health and safety 
conference 2014
  amco’s holme tunnel project won the “civil engineering 
achievement of the year” award at this year’s prestigious 
national rail awards 
  seymour won the customer focus category at northumbrian 
water’s “going the extra mile” awards 2014 for the benfieldside 
road flood protection scheme in consett
  amco was awarded network rails star lite award for a 
pumping station project in sudbrook the award recognises 
high levels of health safety and environmental risk control
awards renew holdings plc
annual report and accounts 2014
corporate governance
42
directors’ report
the directors present their report and the audited accounts for the year ended 30 september 2014
principal activities
for the year ended 30 september 2014 the principal activity of the group was as contractors in engineering services and specialist 
building the main activities are carried out in the united kingdom with some development activities in the usa more details of these 
activities the year’s trading and future developments are contained in the chairman’s statement the chief executive’s review the 
strategic report and the financial review a list of the principal operating subsidiaries of the group as at 30 september 2014 is listed 
in note r to the company’s financial statements
results and dividends
the group profit for the year after accounting for discontinued operations was £5182000 2013 £8472000 the directors 
recommend the payment of a final dividend on the ordinary shares of 35p 2013 250p giving a total for the year of 50p 
2013 360p
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 strategic report and is incorporated into this report by cross reference
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 it is and has been throughout the 
period under review the group’s policy that no trading in financial instruments shall be undertaken the main risks arising from the 
group’s financial instruments are interest rate risk liquidity risk credit risk and foreign currency risk
interest rate risk
interest bearing assets comprise cash and bank deposits and earn interest at floating rates the group’s bank loan and overdraft 
facility bear interest at floating rates
liquidity risk
the group’s policy is to ensure availability of operating funds by maintaining an appropriate cash balance in both current and deposit 
accounts and when necessary to establish appropriate levels of borrowing facilities to provide 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 as at 30 september 2014 £3868000 2013 £4325000 of the group’s net 
assets are denominated in foreign currency the group does not use derivative financial instruments in its management of foreign 
currency risk
credit risk
the group’s principal financial assets are bank balances cash amounts recoverable on contracts and trade receivables which 
represent the group’s maximum exposure to credit risk in relation to financial assets
the group’s credit risk is primarily attributable to its amounts recoverable on contracts and trade receivables
credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending upon their credit 
rating the amounts presented in the balance sheet are net of allowances for doubtful debts estimated by the group’s management 
based on prior experience and their assessment of the current economic environment
payment of creditors
the group recognises the importance of good relationships with its suppliers and 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
employees
the directors recognise the need for communication with employees at every level all employees have access to a copy of the annual 
report and accounts which together with staff briefings internal noticeboard statements and newsletters keeps them informed of 
the group’s progress the group produces a quarterly inhouse publication renews which provides information to its employees 
about the activities and performance of the group
the group continues to be committed to the health safety and welfare of its employees and to observe the terms of the health and 
safety at work act 1974 and all other relevant regulatory and legislative requirements renew holdings plc
annual report and accounts 2014 43
corporate governance
employees continued
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 w may continues as the designated board director of health and safety with group responsibility for safety and environmental 
management health safety and environmental management issues and reports are reviewed at every group board meeting with 
the head of department in attendance when necessary
the executive management committee chaired by the chief executive discusses and progresses policy legislative changes best 
practice training needs inspections audits internal and external performance measurement and statistical information all topics 
are discussed with a specific focus on improvement 
control at business level remains with subsidiary managing directors who are required to appoint a director who is responsible for 
safety and environmental matters health safety and environmental issues are discussed as the first agenda item at monthly board 
meetings each business safety and environmental meeting encourages open communication between all employees and is a key part 
of the group’s efforts to gather and disseminate good practice for inclusion in 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 
certain group companies employ their own specialist advisors who liaise directly with the group hse director on common issues the 
group maintains its membership with the royal society for the prevention of accidents and locally based construction safety groups 
all safety and environmental department personnel hold membership with the institution of occupational safety and health 
attendance on the five day construction industry training board site safety management training scheme continues to be a 
requirement for all construction management personnel with a two day refresher required every five years a one day directors and 
senior managers course is available internally and is used to introduce new systems and detail changes to construction legislation 
short duration ‘tool box talks’ and ‘safety briefings’ are used to enhance the knowledge and competence of supervisory management 
group policy requires each business to report and record all injuries diseases and dangerous occurrences regardless of severity an 
incident database is maintained to collate this information and provide statistical data allowing performance to be measured and 
determine system amendment and future training requirements a system of safety and environmental alerts ensures lessons learnt 
and changes to working practices are rapidly transmitted to our workforce businesses and their contractors the accident incidence 
rate “air” for the year ended 30 september 2014 measured on the standard base line of 100000 persons at work is a key area 
where the group measures its performance 
corporate social responsibility and the environment
the group’s corporate social responsibility report which includes its report on the environment is on pages 39 to 41
directors
the directors of the company who served throughout the year and their brief biographical details are set out below 
nonexecutive directors
john bishop – director 69 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 
david forbes – director 54 was appointed to the board as a nonexecutive director in june 2011 he qualified as a chartered 
accountant in 1984 and has over 20 years’ experience in corporate advisory services with n m rothschild  son limited he is 
nonexecutive chairman of entu uk plc and a nonexecutive director of vertu motors plc and boohoocom plc
roy harrison obe – director 67 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 a former director of bss group plc and has a number of investing director positions in private 
construction materials companies he is governor and chairman of a number of city academies and a nonexecutive director of fox 
marble holdings plc renew holdings plc
annual report and accounts 2014
corporate governance
44
directors’ report continued
executive directors
brian may – director 63 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 
paul scott – director 50 was appointed to the board as engineering services director on 21 july 2014 paul has been with the group 
for sixteen years serving as managing director of shepley engineers limited for seven years before taking up his current position in 
july 2013 prior to joining the board
john samuel – director 58 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
brian may retires by rotation at the 2014 annual general meeting “agm” and will offer himself for reappointment the board 
recommends his reappointment as it considers that he continues to perform his role well additionally paul scott who was 
appointed as a director with effect from 1 july 2014 seeks reappointment at the first agm since his appointment the board 
recommends the reappointment of paul scott and considers that he brings considerable operational and management 
experience to the group’s business
the articles of association provide that each director shall be indemnified by the company against losses costs and expenses he may 
sustain or incur in connection with the performance of his duties of office to the fullest extent permitted by law the company has 
purchased and maintained throughout the year directors’ and officers’ liability insurance in respect of its directors
directors’ interests
the beneficial interests of the directors and their immediate family members in the shares of the company and options for shares 
are set out on page 48 no director has any interest in any other group company details of the directors’ remuneration and service 
contracts appear on pages 46 and 47
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 ordinary
shares
percentage
of issued
share capital
octopus investments nominees limited 9574560 1556
hargreave hale limited 7265370 1181
brewin dolphin limited 2800783 455
investec wealth  investment limited 2503296 407
share capital
as at the date of this report the total number of shares in issue being ordinary shares of 10p each is 61517948 
during the year the company has not bought back any of its own shares 114280 new ordinary shares of 10p each were issued at 
525p during the year to satisfy the exercise of share options
disclosure of information to the auditor
the directors who held office at the date of approval of this directors’ report confirm the following
  so far as each director is aware there is no relevant audit information of which the group’s auditor is unaware and
  each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit 
information and to establish that the group’s auditor is aware of that information
auditor
resolutions will be proposed at the forthcoming agm to reappoint kpmg llp as auditor to the group and to authorise the directors 
to determine their remuneration
approval
the board approved the report of the directors on 25 november 2014
by order of the board
j samuel fca
company secretary
25 november 2014
company number 650447 renew holdings plc
annual report and accounts 2014 45
corporate governance
the directors present the directors’ remuneration report the “remuneration report” for the financial year ended 30 september 2014
as an aim listed company renew is not required to prepare this remuneration report in accordance with the directors’ remuneration 
report regulations 2002 or the recently enacted large and mediumsized companies and groups accounts and reports amendment 
regulations 2013 together “the regulations” however the directors recognise the importance and support the principles of the 
regulations and seek to follow them to the extent considered relevant for an aim listed company there are improved and extended 
disclosures in the report presented below and the remuneration committee will continue to monitor market practice to ensure that 
in future this report will include disclosures at least as good as market practice for aim companies the auditor is not required to report 
to the shareholders on the directors’ remuneration report
the board consults with major shareholders when any significant change in the structure or scale of directors’ remuneration is 
being considered no material matters have been raised by shareholders relating to directors’ remuneration during the year
at the last general meeting votes on the advisory resolution relating to the remuneration report were cast as follows 
in favour – 4885504 997
against – 16618 03 
total votes cast  – 4902122 100
remuneration committee
on his appointment as a director on 1 june 2011 d m forbes assumed the chairmanship of the remuneration committee which also 
comprises r j harrison and j bishop the committee held four 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 those directors to achieve the company’s objectives without making excessive payments the remuneration 
and employment terms of the executive directors are determined by the committee by comparison with salaries paid and terms agreed 
with directors in similar companies in the same sector and of a similar size and after a review of the performance of the individual
it is the aim of the committee to reward executive directors competitively and on the broad principle that they should be in the range 
of median to upper quartile of remuneration paid to senior management of comparable public companies for guidance the 
committee refers to published survey data the board determines the terms and conditions of nonexecutive directors 
there are four main elements to the remuneration packages of the executive directors and other senior executives
  basic salary and benefits
  annual bonus awards
  longterm equity incentive plans and
  pension arrangements
basic salary and benefits
basic salaries are reviewed annually by the remuneration committee and adjusted where the committee believes that 
adjustments are appropriate to reflect performance changed 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
directors’ remuneration report renew holdings plc
annual report and accounts 2014
corporate governance
46
directors’ remuneration report continued
remuneration policy continued
annual bonus awards
it is the company’s policy to provide a bonus incentive scheme for directors and senior executives of the operating companies 
linked directly to the performance of the businesses for which they are responsible in the case of executive directors these relate 
to the performance of the group as a whole all performance criteria are subject to approval by the remuneration committee at the 
beginning of a year and all payments are made only when approved by the remuneration committee
details of the annual bonus scheme for the year under review and the following year are set out below 
longterm equity incentive plans
the remuneration committee has ceased to use the renew holdings plc 2004 executive share option scheme “esos” and 
implemented a new long term incentive plan “ltip” which was approved at an extraordinary general meeting “egm” held on 
25 january 2012 the ltip has been designed so as to comply with abi guidelines in all material respects and to align a material 
part of a director’s remuneration more closely with shareholders 
the performance criteria to be achieved by the company in respect of the ltip are as follows
vesting of one half of the options is dependent on absolute growth in the company’s total shareholder return ‘tsr’ and the other 
half dependent on the company’s tsr performance as compared to the tsr achieved by other companies in a comparator group of 
companies selected by the remuneration committee all tsr calculations are based on the average of the opening and closing 
share price over a 30 day period prior to the commencement and end of the performance period 
the absolute tsr growth target requires the company’s tsr over the three year performance period to have grown by more than 
25 for tsr growth between 25 and 100 the half of the option which is subject to the absolute tsr growth target vests on a 
straightline basis from nil vesting at 25 growth to 100 vesting at 100 growth there is no vesting if tsr growth is 25 or less
in the event of a material correction of any accounts of the company used to assess satisfaction of any performance conditions or in the 
event of a participant’s gross misconduct options may be reduced adjusted or cancelled as determined by the remuneration committee 
to the extent that options have already been exercised the remuneration committee may having considered all the circumstances 
require the participant to return any shares received or the amounts of any proceeds of the sale of such shares net of tax
the esos and the renew savings related share option scheme were approved at an egm held on 11 march 2004 there are no 
options outstanding under either scheme the remuneration committee does not currently intend to grant any further options 
under the esos or the renew savings related share option 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
remuneration for the year ending 30 september 2014
service contracts and letters of appointment
the company’s policy is for all of the executive 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 all nonexecutive directors are subject 
to reelection every 3 years
the service contracts of the directors who served during the year ended 30 september 2014 include the following terms
directors executivenonexecutive date of contract unexpired term notice period months
r j harrison nonexecutive 1 february 2009 rolling one month 1
j bishop nonexecutive 1 september 2008 rolling one month 1
d m forbes nonexecutive 1 june 2011 rolling one month 1
b w may executive 20 june 2005 rolling one year 12
p scott executive 1 july 2014 rolling one year 12
j samuel executive 17 may 2006 rolling one year 12 renew holdings plc
annual report and accounts 2014 47
corporate governance
directors’ remuneration
information is provided below for directors who served during the financial year and as at 30 september 2014
total emoluments total emoluments
salaryfees bonuses benefits pension 2014 2013
notes £000 £000 £000 £000 £000 £000
executive directors
b w may 1234 303 303 71 — 677 556
p scott 2345 33 19 2 8 62 —
j samuel 234 233 233 56 — 522 439
1261 995
nonexecutive directors
r j harrison 58 — — — 58 57
j bishop 31 — — — 31 31
d m forbes 31 — — — 31 31
1383 1114
notes
1 the highest paid director for 2014 and 2013 was b w may who received emoluments of £677000 2013 £556000 
2 benefits include car allowances and certain medical cover for the director and immediate family
3  b w may and j samuel received payments amounting to 15 per cent of their basic salary in lieu of company pension 
contributions these were paid through payroll and taxed as salary and are included in benefits above the company pays 
15 of p scott’s basic salary into his personal pension plan
4  bonuses were earned by b w may p scott and j samuel during the current financial year and will be paid in the year ending 
30 september 2015 p scott was not a participant in the executive directors’ bonus incentive scheme for the year ended 
30 september 2014 and the bonus shown above is related to his former position as managing director of one of the group’s 
operating subsidiaries
5  p scott was appointed as a director with effect from 1 july 2014 and so emoluments shown above represent the three month 
period ended 30 september 2014
annual bonus awards
the company provides a bonus incentive scheme for executive directors linked to the performance of the group 
at the beginning of each year the remuneration committee agrees targets for operating profit before exceptional items for the group 
if the group meets those targets then the executive directors receive an annual bonus equal to 50 per cent of their salary the level of 
over and under performance causes the level of annual bonus to vary with the maximum bonus of 100 percent of salary being paid if the 
performance exceeds the target by 30 per cent the remuneration committee make such adjustments to the target andor results to 
remove distortions such as acquisitions and disposals during the year and other items as they believe are necessary 
at the beginning of the year ended 30 september 2014 the remuneration committee agreed a target for operating profit 
before exceptional items for the group based on the structure of the group on that date of £12600000 the operating profit before 
exceptional items for the group adjusted to remove distortions caused by acquisitions and disposals during the year exceeded the 
set targets by in excess of 30 per cent accordingly under the terms of the scheme the executive directors are entitled to receive 
an annual bonus equal to the maximum bonus of 100 per cent of salary
longterm equity incentive plans
the market price of the company’s shares at 30 september 2014 was 3015p and the range of market prices during the year was 
between 1365p and 3035p
information is provided below for directors who served during the financial year and as at 30 september 2014
directors’ share options under the ltip
pursuant to the ltip the board has granted the following options to the executive directors which are exercisable at a nominal cost 
subject to the achievement of performance criteria as follows
exercisable between
2 march 2015 
1 march 2022
exercisable between
21 december 2015 
20 december 2022
exercisable between
3 january 2017 
2 january 2024
b w may 240000 228560 140647
j samuel 160000 171440 112518
performance criteria for the vesting of the share options under the ltip are set out in the remuneration policy above and in note 20 
to the accounts
no options granted under the ltip vested during the year renew holdings plc
annual report and accounts 2014
corporate governance
48
directors’ remuneration report continued
directors’ pension information
no director had pension entitlements under the company’s defined benefit pension scheme arrangements the group has 
established individual stakeholder plans for each employee who elects to join into which the group makes contributions b w may 
and j samuel receive a sum equivalent to 15 of their basic salary in lieu of pension contributions from the company the company 
pays 15 of p scott’s basic salary into his personal pension scheme
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
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 2014 as follows
ordinary shares of £010 each
30 september 2014 30 september 2013
r j harrison 150000 150000
j bishop 10000 10000
d m forbes 20000 20000
b w may 844193 844193
p scott — —
j samuel 240548 240548
remuneration for the year ending 30th september 2015
basic salary and benefits
the basic salaries of b w may j samuel and p scott have increased by 35 per cent to £313000 £241000 and £207000 respectively 
with effect from 1 october 2014 the level of increase in very closely aligned to the average annual pay award across the group 
as a whole excluding rises for promotions or other changes in responsibility 
there have been no material changes in the benefits which the directors are entitled to receive
annual bonus awards
the annual bonus scheme for the year ending 30 september 2015 has been agreed the structure of the scheme is similar to the 
scheme for the previous year as set out above in all material respects except for the targets executive directors will therefore be 
entitled to receive a bonus of 50 per cent of their basic salary if the group achieves target operating profit and a maximum of 100 
percent of their basic salary if the group achieves 130 per cent of target operating profit
longterm equity incentive plan
the remuneration committee have made annual awards under the ltip since it was set up in 201 2 each award has been made shortly 
after the publication of the company’s annual results it is expected that this will continue in the absence of unforeseen circumstances 
and that the next award will be announced shortly awards are limited in amount to 100 per cent of a directors basic salary unless the 
remuneration committee believe there are exceptional reasons that justify exceeding that limit the first tranche of options granted 
under the ltip  detailed above will vest during the coming year subject to the performance criteria contained therein 
approval
the directors’ remuneration report was approved by the board on 25 november 2014 and signed on its behalf by
d m forbes
chairman of the remuneration committee
25 november 2014 renew holdings plc
annual report and accounts 2014 49
corporate governance
corporate governance
as an aim listed company renew is not required to follow the provisions of the uk corporate governance code “the 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 code the directors normally seek to follow the code 
to the extent considered relevant for an aim listed company but are unable to achieve compliance with the code in a number of 
areas this year primarily because of the lack of independent 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 two executive directors and two 
independent nonexecutive directors brief biographies of the directors are given on pages 43 and 44 the company is not compliant 
with the requirement of the code that more than half of the board should be comprised of independent nonexecutive directors 
although the board believes that mr harrison acts as an independent director he is not regarded as such by the code due to the period 
in 20042005 when he acted as executive chairman 
the composition of the board is reviewed regularly appropriate training briefings and induction are available to all directors on 
appointment and subsequently as necessary taking into account existing qualifications and experience new directors are subject 
to election by shareholders at the first agm after their appointment 
the board met formally ten times in the year with all directors in attendance committee meetings dealing with the daily business 
of the company were held as necessary the board receives written and oral reports from the executive directors ensuring matters 
are considered fully and enabling directors to discharge their duties properly there is a formal schedule of matters reserved for the 
board’s decision ensuring the maintenance of control over strategic financial and operational matters in addition procedures are 
in place for the directors to seek independent professional advice if necessary at the company’s expense
board committees
the board operates with a number of board committees j bishop the senior independent nonexecutive director acts as chairman 
of the audit committee and d m forbes an independent nonexecutive director acts as chairman of the remuneration committee 
the nominations committee is chaired by r j harrison 
the board delegates clearly defined powers to its audit remuneration and nominations committees each of the board’s committees 
has carefully drafted terms of reference 
the remuneration committee which comprises all of the nonexecutive directors determines and agrees with the board the 
framework and policy of executive remuneration packages including bonuses incentive payments share options or awards and 
pension arrangements further information concerning the remuneration committee is set out in the directors’ remuneration report 
on page 45 
the nominations committee which comprises r j harrison j bishop d m forbes and b w may 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
the audit committee has held three meetings to consider audit committee business the audit committee consists of all three 
nonexecutive directors the executive directors are invited to attend audit committee meetings but at least two meetings are held 
each year with the external auditor at which the executive directors are not present the audit committee considers the adequacy and 
effectiveness of the risk management and control systems of the group and reports the results to the board it reviews the scope and 
results of the external audit its cost effectiveness and the objectivity of the auditor the audit committee monitors the nonaudit work 
performed by the auditor to help ensure that the independence of the auditor is maintained the audit committee also reviews the 
interim statement the preliminary announcement and accounting policies 
the board forms a general purposes committee from time it time as it deems necessary this committee comprises any two of the 
executive directors as determined by the board as appropriate and considers individual business matters which have been 
specifically delegated to it by the board
r j harrison obe
nonexecutive chairman
john bishop
nonexecutive director
david forbes
nonexecutive director renew holdings plc
annual report and accounts 2014
corporate governance
50
corporate governance continued
internal controls
throughout the financial year ended 30 september 2014 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 other than as disclosed above the directors 
acknowledge that they have overall responsibility for the group’s system of internal control and for reviewing and monitoring its 
effectiveness the system of internal control is designed to manage and mitigate rather than eliminate the risks to which the group 
is exposed and therefore provides a reasonable but not absolute assurance against a company failing to meet its business objectives 
or against material misstatement or loss consequently the board confirms that there is an ongoing process for identifying evaluating 
and managing significant risks faced by the group and that it is regularly reviewed by the board 
the group operates a risk management process which is embedded in normal management and governance processes there is a 
system of 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 for the last seven years and 
including 2014 the group has carried out a programme of internal audit conducted by the group commercial director and by members 
of the various subsidiaries’ finance teams this system of peer review promotes best practice as well as ensuring that group minimum 
requirements as to procedures and internal controls are being complied with the reports from these internal audits are made 
available both to the board and to the external auditor
going concern
the directors have reviewed the budgets and forecasts prepared by the group and its trading subsidiaries and consider that at the time 
of approving the financial statements there is a reasonable expectation that the company and the group have adequate resources to 
continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in 
preparing the financial statements
directors’ remuneration
the company’s policy on the remuneration of executive directors and information relating to the directors’ remuneration and their 
interests in share options is included in the directors’ remuneration report
directors’ and officers’ indemnity
the articles of association provide that each director or other officer or auditor of the company shall be indemnified by the company 
against losses costs and expenses he may sustain or incur in connection with the performance of his duties of office to the fullest 
extent permitted by law
shareholder relationships
members of the board have dialogue with individual shareholders during the year in addition to the annual and interim report 
and accounts the chairman addresses shareholders at the agm and invites questions to any members of the board 
the agm is normally attended by all directors and provides an opportunity for communication with those shareholders attending 
notice of the agm is given to shareholders at least 21 days in advance and separate resolutions are proposed on each substantially 
separate issue where resolutions at the agm are dealt with by show of hands the results of proxy votes for and against are 
still announced 
financial and other information about the group is available on the company’s website wwwrenewholdingscom from which 
shareholders can also access their shareholding details via a link to the website of capita registrars plc
annual general meeting
the agm will be held on 28 january 2015 the notice for which accompanies this report and accounts the notice contains special 
business relating to the renewal of the board’s power to allot equity shares brief details of the purpose and effect of the proposed 
resolutions are enclosed with the notice of agm 
shareholders should complete the proxy form accompanying this document in accordance with the notes contained in the notice of agm
approval
the board approved the corporate governance report on 25 november 2014
by order of the board
j samuel
company secretary
25 november 2014 renew holdings plc
annual report and accounts 2014 51
corporate governance
statement of directors’ responsibilities
in respect of the strategic report the annual report and financial statements
the directors are responsible for preparing the strategic review the annual report and the group and parent company financial 
statements in accordance with applicable law and regulations
company law requires the directors to prepare group and parent company financial statements for each financial year as required 
by the aim rules of the london stock exchange they are required to prepare the group financial statements in accordance with 
ifrss as adopted by the eu and applicable law and have elected to prepare the parent company financial statements in accordance 
with uk accounting standards and applicable law uk generally accepted accounting practice
under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and parent company and of their profit or loss for that period in preparing each of the group 
and parent company financial statements the directors are required to
  select suitable accounting policies and then apply them consistently
  make judgements and estimates that are reasonable and prudent
  for the group financial statements state whether they have been prepared in accordance with ifrss as adopted by the eu
  for the parent company financial statements state whether applicable uk accounting standards have been followed subject to any 
material departures disclosed and explained in the financial statements and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the parent company 
will continue in business 
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to 
ensure that its financial statements comply with the companies act 2006 they have general responsibility for taking such steps as 
are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website legislation in the uk governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions  renew holdings plc
annual report and accounts 2014
accounts
52
independent auditor’s report
to the members of renew holdings plc
we have audited the financial statements of renew holdings plc for the year ended 30 september 2014 set out on pages 53 to 85 
the financial reporting framework that has been applied in the preparation of the group financial statements is applicable law 
and international financial reporting standards “ifrss” as adopted by the eu the financial reporting framework that has been 
applied in the preparation of the parent company financial statements is applicable law and uk accounting standards uk generally 
accepted accounting practice
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006 
our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose 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 auditor
as explained more fully in the directors’ responsibilities statement set out on page 51 the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit 
and express an opinion on the financial statements in accordance with applicable law and international standards on auditing 
uk and ireland those standards require us to comply with the auditing practices board’s 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 financial reporting council’s website at 
wwwfrcorgukauditscopeukprivate
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 2014 
and of the group’s profit for the year then ended
  the group financial statements have been properly prepared in accordance with ifrss as adopted by the eu
  the parent company financial statements have been properly prepared in accordance with uk generally accepted accounting practice
  the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and 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
iain moffatt senior statutory auditor
for and on behalf of kpmg llp statutory auditor 
chartered accountants 
1 the embankment 
neville street 
leeds 
ls1 4dw 
25 november 2014 renew holdings plc
annual report and accounts 2014 53
accounts
group income statement
for the year ended 30 september
before exceptional before exceptional
exceptional items and exceptional items and
items and amortisation items and amortisation
amortisation of intangible amortisation of intangible
of intangible assets of intangible assets total
assets see note 3 total assets see note 3 2013
2014 2014 2014 2013 2013 restated 
note £000 £000 £000 £000 £000 £000
group revenue from 
continuing activities 2 464474 — 464474 282749 15412 298161
cost of sales 411413 — 411413 247427 11141 258568
gross profit 53061 — 53061 35322 4271 39593
administrative expenses 36623 3055 39678 25286 968 26254
operating profit 3 16438 3055 13383 10036 3303 13339
finance income 4 182 — 182 25 — 25
finance costs 4 427 — 427 362 — 362
other finance expense
income – defined benefit 
pension schemes 4 87 — 87 43 — 43
profit before 
income tax 16106 3055 13051 9742 3303 13045
income tax expense 6 3325 611 2714 2315 760 3075
profit for the year from 
continuing activities 12781 2444 10337 7427 2543 9970
loss for the year from 
discontinued operations 3 5155 1498
profit for the year 
attributable to equity 
holders of the parent 
company 5182 8472
basic earnings 
per share from 
continuing activities 8 1683p 1662p
diluted earnings 
per share from 
continuing activities 8 1659p 1645p
basic earnings 
per share 8 844p 1412p
diluted earnings 
per share 8 832p 1398p
  the prior year income statement has been restated following the reclassification of a discontinued business see note 3 and the impact of ias 19 
2011 on administrative expenses and other finance income see note 2 renew holdings plc
annual report and accounts 2014
accounts
54
group statement of comprehensive income
for the year ended 30 september
2014 2013
note £000 £000
profit for the year attributable to equity holders of the parent company 5182 8472
items that will not be reclassified to profit or loss
movement in actuarial valuation of the defined benefit pension schemes 24 1068 6770
movement on deferred tax relating to the defined benefit pension schemes 214 1429
total items that will not be reclassified to profit or loss 854 5341
items that are or may be reclassified subsequently to profit or loss
exchange movement in reserves 1 24
total items that are or may be reclassified subsequently to profit or loss 1 24
total comprehensive income for the year attributable to 
equity holders of the parent company 6037 3107
called up share capital cumulative share based
share premium redemption translation payments retained total
capital account reserve adjustment reserve earnings equity
£000 £000 £000 £000 £000 £000 £000
at 1 october 2012 5990 5893 3896 775 289 7949 8894 
transfer from income statement for the year 8472 8472 
dividends paid 1917 1917
new shares issued 150 150 
recognition of share based payments 101 101 
exchange differences 24 24
actuarial losses recognised in pension schemes 6770 6770
movement on deferred tax relating to the pension schemes     1429 1429 
at 30 september 2013 6140 5893 3896 751 390 6735 10335 
transfer from income statement for the year 5182 5182 
dividends paid 2461 2461
new shares issued 12 49 61
recognition of share based payments 98 98
exchange differences 1 1
actuarial gain recognised in pension schemes 1068 1068
movement on deferred tax relating to the pension schemes     214 214
at 30 september 2014 6152 5942 3896 752 292 3160 13874 
group statement of changes in equity
for the year ended 30 september renew holdings plc
annual report and accounts 2014 55
accounts
group balance sheet
at 30 september
2013
2014 restated
note £000 £000
noncurrent assets
intangible assets – goodwill 9 53286 33474
– other 9 7770 3959
property plant and equipment 10 15283 8188
retirement benefit assets 24 1456 962
deferred tax assets 6 2741 3051
80536 49634
current assets
inventories 11 4068 3195
trade and other receivables 12 85557 75868
assets held for resale 9 1250 —
cash and cash equivalents 14 5586 5348
96461 84411
  
total assets 176997 134045
noncurrent liabilities
borrowings 16 15500 —
obligations under finance leases 17 3575 1984
retirement benefit obligations 24 — 3545
deferred tax liabilities 6 1749 938
provisions 18 1232 628
22056 7095
current liabilities
borrowings 16 6200 2500
trade and other payables 15 131041 112349
obligations under finance leases 17 2764 1509
current tax liabilities 694 153
provisions 18 368 104
141067 116615
  
total liabilities
163123 123710
  
net assets
13874 10335
share capital 20
6152 6140
share premium account 21 5942 5893
capital redemption reserve 21 3896 3896
cumulative translation adjustment 21 752 751
share based payments reserve 21 292 390
retained earnings 21 3160 6735
total equity 13874 10335
 details of the restated balance sheet are set out in note 28
approved by the board and signed on its behalf by
r j harrison obe
chairman
25 november 2014 renew holdings plc
annual report and accounts 2014
accounts
56
group cashflow statement
for the year ended 30 september
2013
2014 restated
£000 £000
profit for the year from continuing operating activities 10337 9970
amortisation of intangible assets 2231 500
depreciation 2893 1218
profit on sale of property plant and equipment 435 110
increasedecrease in inventories 323 6466
decrease in receivables 1324 2490
increase in payables 9630 4308
current service cost in respect of defined benefit pension scheme 59 53
cash contribution to defined benefit pension schemes 3117 2946
creditexpense in respect of share options 98 101
finance income 182 25
finance expenses 514 319
interest paid 427 362
income taxes paid 1926 429
income tax expense 2714 3075
net cash inflow from continuing operating activities 23194 24628
net cash outflow from discontinued operating activities 4691 5390
net cash inflow from operating activities 18503 19238
investing activities
interest received 182 25
proceeds on disposal of property plant and equipment 647 1854
purchases of property plant and equipment 1559 649
acquisition of subsidiaries net of cash acquired 32132 9384
net cash outflow from continuing investing activities 32862 8154
net cash outflow from discontinued investing activities 106 56
net cash outflow from investing activities 32968 8210
financing activities
dividends paid 2461 1917
issue of ordinary shares 61 150
new loan 24000 —
loan repayments 4800 5000
repayments of obligations under finance leases 2096 958
net cash inflowoutflow from continuing financing activities 14704 7725
net cash outflow from discontinued financing activities — —
net cash inflowoutflow from financing activities 14704 7725
net increase in continuing cash and cash equivalents 5036 8749
net decrease in discontinued cash and cash equivalents 4797 5446
net increase in cash and cash equivalents 239 3303
cash and cash equivalents at beginning of year 5348 2040
effect of foreign exchange rate changes on cash and cash equivalents 1 5
cash and cash equivalents at end of year 5586 5348
bank balances and cash 5586 5348
  the prior year cash flow statement has been restated following the reclassification of a discontinued business see note 3 and the impact of ias 19 
2011 on administrative expenses and other finance income see note 2 renew holdings plc
annual report and accounts 2014 57
accounts
notes to the accounts
1 accounting policies
presentation of consolidated financial statements
the consolidated financial statements have been prepared in accordance with the international financial reporting standards 
“ifrss” as adopted by the eu “adopted ifrss” the financial statements are presented in sterling since this is the currency 
in which the majority of the group’s transactions are denominated
accounting estimates and judgements
in the preparation of these financial statements the board has made certain judgements and estimates which impact the 
measurement of various assets and liabilities in the group balance sheet the value of transactions recorded in the group income 
statement and the movements in equity as shown in the group statement of changes in equity the actual financial outcomes may 
ultimately differ from that which is indicated by these judgements and estimates estimates and judgements are reviewed by 
management and the board on an ongoing basis and changes which may arise in them are reflected in the financial statements 
for the period in which such changes are made
the board has determined that the following areas are those in which estimates and judgements have been made and where 
material impacts could arise in the financial statements were such estimates and judgements to be varied
a accounting for construction contracts in accordance with ias 11 “construction contracts” 
ias 11 requires management to estimate the total expected costs on a contract and the stage of contract completion in order to 
determine both the revenue and profit to be recognised in an accounting period the group has control and review procedures in 
place to monitor and evaluate regularly the estimates being made to ensure that they are consistent and appropriate this includes 
reviewing the independent certification of the value of work done the progress of work against contracted timescales and the costs 
incurred against plan
b impairment of goodwill in accordance with ias 36 “impairment of assets”
in accordance with ias 36 goodwill is tested annually for impairment by comparing the carrying value of goodwill with the 
recoverable amount which is determined by an estimation of the value in use of the related cash generating unit to which the 
goodwill is attributed the calculation of the value in use requires estimates to be made of the future cash flows of the cash 
generating unit and the timescale over which they will arise estimated growth rates and discount factors are also used in the 
calculation to estimate the net present value of the cash flows more information is given in note 9 to these financial statements
c accounting for the defined benefit pension schemes in accordance with ias 19 “employee benefits”
the independent actuaries calculate the group’s liability in respect of the defined benefit schemes the actuaries make assumptions as 
to discount rates salary escalations expected returns on scheme assets future pension increases mortality rates applicable to members 
and future rates of inflation these assumptions are made under the board’s direction the board determines the appropriateness of these 
assumptions by benchmarking them against those used by other schemes and by taking advice from the independent actuaries if the actual 
experience of the schemes is different from the assumptions used then the pension liability may differ from that shown in these financial 
statements more information is given in note 24 to these financial statements
d accounting for provisions in accordance with ias 37 “provisions contingent liabilities and contingent assets”
the group makes provisions where the board determines that liabilities exist but where judgements have to be made as to the 
quantification of such liabilities a provision has been made for onerous lease contracts in respect of property leases where the 
board has determined that the expected economic benefits to be derived from the leases are less than the unavoidable cost 
of meeting the group’s obligations under the lease contract this arises where the group is the head lessee for a property lease 
contract where the property is not used by the group and where the group has not been able to sublet the property or has only 
been able to do so on terms which are less favourable than those of the head lease
e accounting for deferred taxation in accordance with ias 12 “income taxes”
the group provides for deferred taxation using the balance sheet liability method deferred tax assets are recognised in respect 
of tax losses where the directors believe that it is probable that future profits will be relieved by the benefit of tax losses brought 
forward the board considers the likely utilisation of such losses by reviewing budgets and medium term plans for each taxable 
entity within the group if the actual profits earned by the group’s taxable entities are different from the budgets and forecasts 
used then the value of such deferred tax assets may differ from that shown in these financial statements
f accounting for discontinued operations in accordance with ifrs 5 “noncurrent assets held for sale and discontinued operations”
a noncurrent asset or a group of assets containing a noncurrent asset a disposal group is classified as held for sale if its carrying 
amount will be recovered principally through sale rather than through continuing use it is available for immediate sale and sale is 
highly probable within one year on initial classification as held for sale noncurrent assets and disposal groups are measured at 
the lower of previous carrying amount and fair value less costs to sell with any adjustments taken to profit or loss the same applies 
to gains and losses on subsequent remeasurement although gains are not recognised in excess of any cumulative impairment loss 
any impairment loss on a disposal group first is allocated to goodwill and then to remaining assets and liabilities on pro rata basis 
except that no loss is allocated to inventories financial assets deferred tax assets employee benefit assets and investment 
property which continue to be measured in accordance with the group’s accounting policies intangible assets and property plant 
and equipment once classified as held for sale or distribution are not amortised or depreciated in accordance with ifrs 5 the 
above policy is effective from the start of the accounting period in which the operation meets the criteria to be classified as held 
for sale a discontinued operation is a component of the group’s business that represents a separate major line of business or 
geographical area of operations that has been disposed of or is held for sale or is a subsidiary acquired exclusively with a view to 
resale classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as 
held for sale if earlier when an operation is classified as a discontinued operation the comparative income statement is restated 
as if the operation has been discontinued from the start of the comparative period
i basis of accounting and preparation
the accounts have been prepared on the going concern basis and in accordance with applicable accounting standards under the 
historical cost convention in determining that the going concern basis is appropriate the directors have reviewed budgets including 
cashflow forecasts and concluded that group has adequate cash resources to continue trading for the foreseeable future renew holdings plc
annual report and accounts 2014
accounts
58
notes to the accounts continued
1 accounting policies continued
i basis of accounting and preparation continued
the consolidated financial statements have been prepared in accordance with ifrss as adopted for use in the eu the group 
has applied all accounting standards and interpretations issued by the iasb and international financial reporting committee 
relevant to its operations and which are effective in respect of these financial statements
as a result of ias 19 2011 the group has changed its accounting policy with respect to the basis for determining the income or 
expense related to the net pension assetliability under ias 19 2011 the group determines net expense or income for the period 
on the net pension liability or asset by applying the discount rate used to measure the defined benefit obligation at the beginning of 
the annual period to the net pension liability or asset taking into account any changes in the net pension liability or asset during the 
period as a result of contributions and benefit payments previously the group determined interest income on plan assets based on 
their long term rate of return 
the following new or revised international financial reporting standards and ifric interpretations will be adopted where 
applicable for the purpose of preparing future financial statements the group does not anticipate that the adoption of these 
new or revised standards and interpretations will have a material impact on its financial position or results from operations
international financial reporting standards applies to periods beginning after
ias 2 – separate financial statements january 2016
annual improvements to ifrs – 2012–14 cycle january 2016
ifrs 9 – financial instruments january 2018
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
the operating segments are based on the components that the board the group’s principal decisionmaking body the chief 
operating decision maker “codm” monitors in making decisions about operating matters such components are identified on 
the basis of information that is provided internally in the form of monthly management account reporting budgets and forecasts 
to formulate allocation of resource to segments and assess performance revenue from reportable segments is measured on a 
basis consistent with the income statement revenue is principally generated from within the uk the group’s country of domicile 
segment results show the contribution directly attributable to each segment in arriving at the group’s operating profit segment 
assets and liabilities comprise those assets and liabilities directly attributable to each segment group eliminations represent 
such consolidation adjustments that are necessary to determine the group’s assets and liabilities
vi intangible assets
a   goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of 
the identifiable assets liabilities and contingent liabilities of a subsidiary associate or 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 other intangible assets is 
amortised over their expected useful lives these intangibles relate to customer relationships and contractual rights and are amortised 
over the period over which the board has determined that future cash flows are likely to arise from these relationships and rights
vii property plant and equipment
property plant and equipment are recorded at cost less provision for impairment if required 
depreciation is provided on all property plant and equipment other than freehold land provision is made at rates calculated 
to write off the cost of each asset less estimated residual value evenly over its expected useful life as follows
group occupied property
freehold land   – no depreciation charge
long leasehold land and buildings – shorter of fifty years and period of lease
plant vehicles and equipment – three to ten years renew holdings plc
annual report and accounts 2014 59
accounts
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 schemes
pension scheme assets are measured using market values pension scheme liabilities are measured using the projected unit 
actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency 
to the liability any increase in the present value of liabilities within the group’s defined benefit schemes expected to arise from 
employee service in the period is charged to operating profit the expected return on the schemes’ assets and the increase during 
the period in the present value of the schemes’ liabilities arising from the passage of time are included in other finance income 
actuarial gains and losses are recognised in the group statement of comprehensive income pension scheme surpluses to the 
extent they are considered recoverable or deficits are recognised in full and presented on the face of the group balance sheet
xvi defined contribution pension plans
contributions to defined contribution pension plans are charged to the income statement as incurred
xvii taxation
the tax charge is composed of current tax and deferred tax calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date current tax and deferred tax are charged or credited to the income statement except when 
they relate to items charged or credited directly to equity in which case the relevant tax is also dealt with in equity
current tax is based on the profit for the year deferred tax is provided in full using the liability method on temporary differences 
arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements 
deferred tax on such assets and liabilities is not recognised if the temporary difference arises from the initial recognition other than in 
a business combination of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit
deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which 
the temporary differences can be utilised the carrying amount of deferred tax assets is reviewed at each balance sheet date 
deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the group 
intends to settle its current assets and liabilities on a net basis 
xviii foreign currencies 
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction monetary assets and liabilities 
denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date the income statements of 
overseas subsidiary undertakings are translated at the average rate of exchange ruling throughout the financial year the balance sheets 
of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date exchange differences arising 
from this policy and arising on the retranslation of the opening net assets are taken directly to reserves all other exchange differences 
are taken to the income statement renew holdings plc
annual report and accounts 2014
accounts
60
notes to the accounts continued
1 accounting policies continued
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 value 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 monte carlo 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 directors’ estimate of shares that will 
eventually vest
xxi earnings per share
the group presents basic and diluted earnings per share eps data for its ordinary shares basic eps is calculated by dividing the profit or 
loss attributable to ordinary shareholders of the company by the weighted average number of ordinary shares outstanding in the period 
diluted eps is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary 
shares outstanding for the effects of all dilutive potential ordinary shares which comprise share options granted to employees 
xxii rental income
rental income from property is recognised in the income statement on a 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
the chief operating decision maker “codm” is responsible for the overall resource allocation and performance assessment of the 
group the board approves major capital expenditure and its authority is required prior to the group entering into any development 
projects the board assesses the performance of the group and its progress against the strategic plan through monitoring of key 
performance indicators the board also determines key financing decisions such as raising equity all loan or bank borrowing 
arrangements and the granting of security over the group’s assets as such the group considers that the board is the codm
operating segments have been identified based on the internal reporting information provided to the codm from such information 
engineering services and specialist building have been determined to represent operating segments following the identification 
of the operating segments the group has assessed the similarity of the characteristics of the operating segments given the different 
performance targets and markets operated within each operating segment it is not appropriate to aggregate the operating segments 
for reporting purposes and therefore both of the identified operating segments are disclosed as reportable segments the information 
received by the codm shows results both pre and post exceptional items the group had one customer within the engineering services 
sector which represented 406 2013 31 1 of group revenue no other customer represented more than 10 of the group’s revenue
these segments are
engineering services which comprises the group’s engineering activities which are characterised by the use of the group’s skilled 
engineering workforce supplemented by specialist subcontractors where appropriate in a range of civil mechanical and electrical 
engineering applications and
specialist building which comprises the group’s building activities which are characterised by the use of a supply chain of subcontractors 
to carry out building works under the control of the group as principal contractor and
central activities which include the sale of land for development the leasing and subleasing of some uk properties and the 
provision of central services to the operating subsidiaries
subsequent to the year end the group has entered into a contract to dispose of part of its specialist building segment the results 
of that business are shown as a discontinued operation comparative figures have been restated accordingly
prior year costs for central activities have been increased by £400000 as a result of the impact of ias 19 2011 these costs were 
formerly dealt with in the statement of comprehensive income renew holdings plc
annual report and accounts 2014 61
accounts
2 segmental analysis continued
a business analysis
revenue is analysed as follows
2013
2014 restated
£000 £000
engineering services 382467 232371
specialist building 82112 50621
inter segment revenue 105 246
segment revenue 464474 282746
central activities — 3
group revenue before exceptional items 464474 282749
exceptional revenue — 15412
group revenue from continuing activities 464474 298161
analysis of operating profit from continuing activities
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 2013
2014 2014 2014 2013 2013 restated
£000 £000 £000 £000 £000 £000
engineering services 16280 2231 14049 10646 500 10146
specialist building 2157 — 2157 1287 272 1015
segment operating profit 18437 2231 16206 11933 772 11161
central activities 1999 824 2823 1897 4075 2178
operating profit 16438 3055 13383 10036 3303 13339
net financing expense 332 — 332 294 — 294
profit on ordinary activities 
before income tax 16106 3055 13051 9742 3303 13045
balance sheet analysis of business segments
2014 2013 restated
assets liabilities net assets assets liabilities net assets
£000 £000 £000 £000 £000 £000
engineering services 161480 130907 30573 139882 85475 54407
specialist building 68516 94459 25943 69117 95067 25950
central activities 227500 217641 9859 172525 195128 22603
discontinued operations 42042 42657 615 46214 41733 4481
group eliminations 322541 322541 — 293693 293693 —
group net assets 176997 163123 13874 134045 123710 10335
other information
2014 2013 restated
capital capital
additions depreciation amortisation additions depreciation amortisation
£000 £000 £000 £000 £000 £000
engineering services 4716 2797 2231 1318 1138 500
specialist building 168 83 — 84 68 —
central activities 5 13 — 4 12 —
discontinued operations 132 82 — — 70 —
5021 2975 2231 1406 1288 500 renew holdings plc
annual report and accounts 2014
accounts
62
notes to the accounts continued
2 segmental analysis continued
b geographical analysis
revenue is analysed as follows
2013
2014 restated
£000 £000
uk 464474 298161
usa — —
group revenue from continuing activities 464474 298161
noncurrent asset analysis of geographical segments
assets assets
£000 £000
uk 80536 49634
3 operating profit 
2014 2013
£000 £000
operating profit is arrived at after chargingcrediting
auditor’s remuneration – audit services 255 200
depreciation of owned assets 2181 668
depreciation of assets held under finance leases 712 550
operating lease rentals – plant and machinery 691 831
operating lease rentals – motor vehicles 792 497
operating lease rentals – other 2912 3297
rental income 362 1006
profit on sale of property plant and equipment 435 110
during the year the following services were provided by the group auditor
2014 2013
£000 £000
fees payable to the company’s auditor for the audit of the financial statements 38 51
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 217 149
other services related to tax and banking advice 8 14
263 214
exceptional items and amortisation of intangible assets
2014 2013
£000 £000
acquisition costs 824 196
redundancy and restructuring costs — 272
profit arising from sale of land — 9190
write down of land stock in the usa — 4919
total lossesgains arising from exceptional items 824 3803
amortisation of intangible assets see note 9 2231 500
3055 3303
the board has determined that certain items in the income statement should be separately identified for better understanding 
of the group’s results
during the year the company acquired forefront group ltd and clarke telecom ltd and incurred £824000 of costs associated with 
the acquisitions in 2013 £196000 of costs were incurred on the acquisition of lewis civil engineering ltd
in 2013 the group incurred £272000 of exceptional redundancy and restructuring costs in respect of a regional nonspecialist building office
on 21 august 2013 the company sold 71 acres of land near rugby for a gross sum of £14384000 resulting in a profit of £9190000
in 2013 as a result of changes to detailed planning and zoning agreements in respect of land owned by the group in the usa the 
board wrote down the carrying value of these assets by £4919000
the board has also separately identified the charge of £2231000 2013 £500000 for the amortisation of the fair value ascribed to 
certain intangible assets other than goodwill arising from the acquisitions of amco group holdings ltd lewis civil engineering ltd 
clarke telecom ltd and forefront group ltd further details are given in note 9 renew holdings plc
annual report and accounts 2014 63
accounts
3 operating profit continued
discontinued operations analysis
2014 2013
£000 £000
revenue 49992 51536
expenses 54124 54279
loss before income tax 4132 2743
income tax expense – deferred tax 1023 1245
loss for the year from discontinued operations 5155 1498
on 31 october 2014 places for people group limited “pfp” acquired 50 of the ordinary share capital of allenbuild ltd a specialist building 
subsidiary following the practical completion of a number of partly completed contracts the benefit of which will accrue to the group pfp will 
acquire the remaining 50 this is expected to be in approximately 1 2 months’ time the trading result for this business has therefore been 
included within the loss for the year from discontinued operations and the comparative figures have been reclassified accordingly
discontinued expenses include the following exceptional items
2014 2013
£000 £000
provision against amounts recoverable on old building contracts 2528 2767
costs related to exceptional storm damage on a building contract 1500 500
4028 3267
the provision of £2528000 relates to settling final accounts and contractual issues on old contracts
a further £1500000 of costs have been recognised following the exceptional storm damage experienced in 2013
4 finance income and costs 
finance income
finance income of £182000 2013 £25000 has been earned during the year on bank deposits
2014 2013
£000 £000
interest payable
on bank loans and overdrafts 232 282
other interest payable 195 80
427 362
other finance expenseincome – defined benefit pension schemes
interest on scheme assets 5664 6080
interest on scheme obligations 5751 6037
net pension interest 87 43
further information on the defined benefit pension schemes is set out in note 24 to the accounts
5 employee numbers and remuneration
2014 2013
number number
the average monthly number of employees including executive directors employed  
in continuing activities during the year was 2706 1869
at 30 september 3121 2149
production 1952 1220
administrative 754 649
2706 1869
cost of staff including executive directors during the year amounted to
2014 2013
£000 £000
wages and salaries 98518 76079
social security costs 10490 7838
other pension costs 2669 2454
share based payments 98 101
111579 86472
directors’ emoluments
2014 2013
£000 £000
aggregate emoluments 1383 1114
highest paid director aggregate emoluments 677 556
details of individual directors’ emoluments can be found in the directors’ remuneration report renew holdings plc
annual report and accounts 2014
accounts
64
notes to the accounts continued
6 income tax expense
a analysis of expense in year
2014 2013
£000 £000
current tax
uk corporation tax on profits of the year 2265 2146
adjustments in respect of previous periods 227 10
total current tax 2492 2136
deferred tax – defined benefit pension schemes 594 612
deferred tax – other timing differences 651 540
total deferred tax 1245 1152
income tax expense 3737 3288
deferred tax in respect of discontinued operations 1023 213
income tax expense in respect of continuing activities 2714 3075
b factors affecting income tax expense for the year
2014 2013
£000 £000
profit before income tax 13051 13045
profit multiplied by standard rate of corporation tax in the uk of 220 2013235 2871 3066
effects of
expenses not deductible for tax purposes 1341 116
timing differences not provided in deferred tax 158 217
change in tax rate 45 94
net charge in respect of tax losses — 379
tax losses surrendered by discontinued operations 905 140
deferred tax in respect of discontinued operations 1023 213
adjustments to tax charge in respect of previous periods 227 10
2714 3075
the group has available further unused uk tax losses of £42m 2013 £48m to carry forward against future taxable profits 
the group also has unused usa tax losses of 17m £105m 2013 16m £102m 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 £106m 2013 £116m
c deferred tax asset
2014 2013
£000 £000
defined benefit pension scheme 148 709
accelerated capital allowances 743 441
other timing differences 279 122
future tax losses 1867 1779
2741 3051
d deferred tax liabilities
2014 2013
£000 £000
defined benefit pension scheme 143 192
fair value adjustments 1606 746
1749 938 renew holdings plc
annual report and accounts 2014 65
accounts
6 income tax expense continued
e reconciliation of deferred tax asset
2014 2013
£000 £000
as at 1 october 3051 2929
acquisition of forefront group and clarke telecom 950 113
origination of timing differences 403 105
change of deferred tax rate — 481
defined benefit pension schemes – income statement 554 549
defined benefit pension schemes – soci 303 1144
at 30 september 2741 3051
f reconciliation of deferred tax liability
2014 2013
£000 £000
as at 1 october 938 1039
acquisition of forefront group and clarke telecom 1306 —
arising on fair value adjustments 446 243
change of deferred tax rate — 99
defined benefit pension schemes – income statement 40 40
defined benefit pension schemes – soci 89 285
at 30 september 1749 938
7 dividends
2014 2013
penceshare penceshare
interim related to the year ended 30 september 2014 150 110
final related to the year ended 30 september 2013 250 210
total dividend paid 400 320
£000 £000
interim related to the year ended 30 september 2014 923 658
final related to the year ended 30 september 2013 1538 1259
total dividend paid 2461 1917
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 350p per ordinary share be paid in respect of the year ended 
30 september 2014 this will be accounted for in the 201415 financial year
8 earnings per share
2014 2013 restated
earnings eps deps earnings eps deps
£000 pence pence £000 pence pence
earnings before exceptional items 
and amortisation 12781 2080 2051 7427 1238 1225
exceptional items and 
amortisation 2444 397 392 2543 424 420
basic earnings per share – 
continuing activities 10337 1683 1659 9970 1662 1645
loss for the year from 
discontinued operations 5155 839 827 1498 250 247
basic earnings per share 5182 844 832 8472 1412 1398
weighted average number 
of shares 61431 62313 59998 60624
the dilutive effect of share options is to increase the number of shares by 882000 2013 626000 and reduce basic earnings per share by 
012p 2013 014p renew holdings plc
annual report and accounts 2014
accounts
66
notes to the accounts continued
9 intangible assets
contractual
rights and
customer
goodwill relationships
£000 £000
cost
at 1 october 2012 27726 4072
additions 6142 2209
hindsight adjustment note 28 414 — 
at 1 october 2013 34282 6281
additions 21062 6042
reclassified as assets held for resale 1250 —
at 30 september 2014 54094 12323
impairment lossesamortisation
at 1 october 2012 808 1822
charge for year — 500
at 1 october 2013 808 2322
charge for year — 2231
at 30 september 2014 808 4553
carrying amount
at 30 september 2014 53286 7770
at 30 september 2013 33474 3959
at 30 september 2012 26918 2250
the carrying amounts of goodwill by operating segment are as follows
2014 2013
£000 £000
specialist building 1253 2503
specialist engineering 52033 30971
53286 33474
£1250000 of goodwill has been reclassified as assets held for resale in respect of the disposal of allenbuild ltd subsequent to the 
balance sheet date
goodwill of £6142000 was acquired on the acquisition of lewis civil engineering ltd and was reviewed for impairment one year 
after the acquisition and then will be on an ongoing basis as required by ifrs 3 no impairment was identified goodwill has 
increased by £414000 as a result of a fair value hindsight adjustment details are set out in note 28
clarke telecom
goodwill of £11143000 was acquired on the acquisition of clarke telecom ltd and will be reviewed for impairment one year after 
the acquisition and then on an ongoing basis as required by ifrs 3 details are set out in note 26 
forefront group
goodwill of £9919000 was acquired on the acquisition of forefront group ltd and will be reviewed for impairment one year after 
the acquisition and then on an ongoing basis as required by ifrs 3 details are set out in 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 5 years
in order to test goodwill for impairment the group performs value in use calculations by preparing cash flow forecasts for each cash 
generating unit derived from the most recent financial budgets and strategic plans approved by management going forward 3 years 
and then extrapolates cash flows based on conservative estimated growth rates which do not exceed gdp growth in the longer term 
according to management’s view of longer term prospects for each cash generating unit the cash generating units are deemed to 
be the subsidiaries to which the goodwill relates management used growth rates deemed to be appropriate to each cash generating 
unit after reviewing the particular market conditions related to the sector in which the cash generating unit operates growth rates 
of between 3 and 6 per annum have been used the rate used to discount the forecast cash flows is 8 as the board considers the 
rate appropriate in the current financial market as an approximation to the cost of funds to the group the calculation shows that 
there is substantial headroom and the impairment calculations are not particularly sensitive to changes in the discount rate applied renew holdings plc
annual report and accounts 2014 67
accounts
10 property plant and equipment
freehold long leasehold plant vehicles
land and buildings land and buildings and equipment total
£000 £000 £000 £000
cost
at 1 october 2012 1826 75 5011 6912
additions 8 — 1398 1406
asset reclassification 187 — 187 —
disposals 1613 — 1445 3058
acquisition of subsidiary 1679 — 3445 5124
at 1 october 2013 1713 75 8596 10384
additions — — 5021 5021
disposals — — 3888 3888
acquisition of subsidiary — — 5284 5284
at 30 september 2014 1713 75 15013 16801
depreciation
at 1 october 2012 75 75 2072 2222
charge for year 14 — 1274 1288
disposals — — 1314 1314
at 1 october 2013 89 75 2032 2196
charge for year 16 — 2959 2975
disposals — — 3653 3653
at 30 september 2014 105 75 1338 1518
net book value
at 30 september 2014 1608 — 13675 15283
at 30 september 2013 1624 — 6564 8188
at 30 september 2012 1751 — 2939 4690
the net book value of assets under finance leases at 30 september 2014 was £7376000 2013 £3947000 
during the year £712000 2013 £550000 of depreciation was charged against assets held under finance leases
11 inventories
2014 2013
£000 £000
developments and undeveloped land 3242 3057
raw materials 826 138
4068 3195
£11m 2013 £02m of inventories are pledged as security for liabilities 
12 trade and other receivables
2014 2013
£000 £000
trade receivables 84 110
amounts due from construction contract customers 75752 69652
other receivables 4131 4638
prepayments and accrued income 5590 1468
85557 75868
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 £33m 2013 £28m 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 255 days 2013 328 days renew holdings plc
annual report and accounts 2014
accounts
68
notes to the accounts continued
12 trade and other receivables continued
ageing of past due but not impaired receivables
2014 2013
£000 £000
30–180 days 1649 705
180–365 days 675 748
greater than 1 year 932 1386
3256 2839
13 construction contracts
2014 2013
£000 £000
contracts in progress at balance sheet date
amounts due from construction contract customers included in trade and other receivables 75752 69652
amounts due to construction contract customers included in trade and other payables 3499 4831
72253 64821
contract costs incurred plus recognised profits less recognised losses to date 2902146 2649406
less progress billings 2829893 2584585
72253 64821
at 30 september 2014 retentions held by customers amounted to £136m 2013 £1 16m advances received from customers for contract 
work amounted to £35m 2013 £48m
amounts due from construction contract customers which are past due at the reporting date amounted to £33m 2013 £28m
this amount includes retention balances of £15m 2013 £21m the group does not hold any collateral over these balances or other 
trade and other receivables
contract revenue recognised in the year amounted to £4645m 2013 £2827m
14 cash and cash equivalents 
2014 2013
£000 £000
cash at bank 5570 5339
cash in hand 16 9
5586 5348
15 trade and other payables
2014 2013
£000 £000
amounts due to construction contract customers 3499 4831
trade payables 36840 28979
other taxation and social security 4114 4093
other payables 9643 7127
accruals and deferred income 76945 67319
131041 112349
16 borrowings
2014 2013
£000 £000
bank loans and overdrafts repayable
within one year 6200 2500
within two to five years 15500 —
21700 2500
the bank loans and overdrafts are secured by a fixed and floating charge over the group’s assets renew holdings plc
annual report and accounts 2014 69
accounts
17 obligations under finance leases
minimum lease payments
present value of minimum
lease payments
2014 2013 2014 2013
£000 £000 £000 £000
amounts payable under finance leases
within one year 2994 1633 2764 1509
within two to five years 3874 2147 3575 1984
6868 3780 6339 3493
less future finance charges 529 287 — —
present value of lease obligations 6339 3493 6339 3493
less amount due for settlement within twelve months 2764 1509
amount due for settlement after twelve months 3575 1984
it is the group’s policy to lease certain of its plant vehicles and equipment under finance leases the average outstanding lease 
term is 3 years 2013 3 years for the year ended 30 september 2014 the average effective borrowing rate was 3 2013 3 
interest rates are fixed at the contract date all leases are on a fixed repayment basis and no arrangement has been entered 
into for contingent rental payments
all lease obligations are denominated in sterling the fair value of the group’s lease obligations approximates to their carrying 
amount the group’s obligations under finance leases are secured on the asset to which the lease relates
18 provisions
property
obligations
£000
at 1 october 2013 732
amount provided during the year 868
at 30 september 2014 1600
noncurrent liabilities 1232
current liabilities 368
at 30 september 2014 1600
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
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
it is and has been throughout the period under review the group’s policy that no trading in financial instruments shall be undertaken 
the disclosures below provide information about the contractual terms of the group’s interest bearing deposits loans and borrowings
interest rate profile of financial assets and liabilities 
financial assetsliabilities
fixed rate fixed floating
interest rate rate rate total
  £000 £000 £000
2014
assets
sterling — — 5488 5488
dollar — — 82 82
 — 5570 5570
liabilities
sterling 30 6339 21700 28039
6339 21700 28039
  £000 £000 £000
2013
assets
sterling — — 5127 5127
dollar — — 212 212
 — 5339 5339
liabilities
sterling 30 3493 2500 5993
3493 2500 5993 renew holdings plc
annual report and accounts 2014
accounts
70
notes to the accounts continued
19 other financial instruments continued
interest rate profile of financial assets and liabilities continued
the interest bearing assets accrue interest at prevailing market rates generally the group holds deposits which are repayable on demand
the sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or libor 
the maturity of the fixed rate financial liabilities is disclosed in note 17  the fixed rate liabilities have a weighted average period of 3 years 
2013 3 years 
fair value of financial assets and liabilities
there are no material differences between fair value and the book value of the group’s financial assets and liabilities
financial risks
the group has exposure to a number of financial risks through the conduct of its operations risk management is governed by the 
group’s operational policies guidelines and authorisation procedures which are outlined in the corporate governance statement 
the key financial risks resulting from financial instruments are credit liquidity currency and market risk
a credit risk
credit risk is the risk of loss if a customer fails to meet its financial obligations and results primarily from the group’s trade and 
other receivables the degree to which the group is exposed to this risk depends on the individual financial situation of each specific 
customer the group does not have any risk from a concentration of trade or other receivables in any customer or group of customers 
the group assesses the credit worthiness of every customer prior to entering into any contract and requires appropriate evidence of 
financial capability on a case by case basis the group reviews trade and other receivables for impairment on a regular basis and 
information relating to the ageing of receivables is provided in note 12
b liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the board is responsible for 
ensuring that the group has sufficient liquidity to meet its financial liabilities as they fall due and does so by monitoring cashflow 
forecasts and budgets the board has considered the cashflow forecasts for the next twelve months which show that the group 
expects to operate within its working capital facilities throughout the year
the board aims to maintain a strong capital base so as to ensure investor and market confidence and to sustain the future of the 
business the capital structure of the group consists of equity attributable to equity holders of the company as disclosed in note 20 
and reserves as disclosed in note 21 the group arranges loans and short term overdraft facilities and hire purchase facilities as the 
board deems necessary the group does not have any derivative or nonderivative financial liabilities other than those disclosed in 
notes 15 to 17 and the retirement benefit obligations disclosed in note 24 an analysis of the maturity profile for finance lease 
liabilities is given in note 17
c currency risk
the only exposure of the group to currency risk ie exposure to gains or losses on foreign exchange which would be recognised in 
the income statement is in respect of the unhedged portion of an intercompany loan at 30 september 2014 the unhedged portion 
of the intercompany loan was 1771000 2013 771000 the dollar closing exchange rate was 162 £1 2013 162 £1 resulting 
in a foreign exchange gain of £18000 2013 loss £23000 being charged to finance costs 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 £1000 the total equity statement would 
be impacted by £58000 for each 001 movement in exchange rates
all functional currencies of the group operations are denominated in sterling with the exception of the us operations whose 
functional currency is the us dollar
d market risk
market risk is the risk that changes in market prices will affect the group’s income or the carrying amount of its holding of financial 
instruments the principal risk relates to interest rates where the group’s risk is limited to the rates applying to its interest bearing 
shortterm deposits and its bank loan a reduction in market interest rates could lead to a reduction in the group’s interest income 
and a reduction in its interest costs consequently a 1 decrease in market interest rates would reduce annual finance costs by 
£10000 for every £1m of outstanding loan
the group’s hire purchase financial liabilities are all at fixed rates of interest
20 share capital
2014 2013
£000 £000
allotted called up and fully paid
61517948 2013 61403668 ordinary shares of 10p each 6152 6140
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
during the year 114280 ordinary shares were issued following the exercise of options under the approved element of the renew 
holdings plc executive share option scheme
share options
renew holdings 2004 executive share option scheme
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 renew holdings plc
annual report and accounts 2014 71
accounts
20 share capital continued
share options continued
renew holdings 2004 executive share option scheme continued
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
all options granted under this scheme have vested and have been exercised
renew holdings plc long term incentive plan
at the annual general meeting held on 25 january 2012 the shareholders approved a new long term incentive plan “ltip” which 
replaced the renew holdings plc 2004 executive share option scheme as the directors believed that the ltip was a more effective 
method of aligning executive and shareholder interests
on 2 march 2012 the company granted options to subscribe for 400000 ordinary shares pursuant to the ltip on 20 december 2012 
options to subscribe for a further 400000 ordinary shares were granted on 3 january 2014 options to subscribe for a further 253165 
ordinary shares were granted
the options are exercisable at a nominal cost from 2 march 2015 in respect of those granted on 2 march 201 2 from 20 december 2015 in 
respect of those granted on 20 december 201 2 and from 3 january 2017 in respect of those granted on 3 january 2014 subject to the 
achievement of certain performance criteria
vesting of one half of the options is dependent on absolute growth in the company’s total shareholder return ‘tsr’ and the other 
half is dependent on the company’s tsr performance as compared to the tsr achieved by other companies in a comparator group 
of nine companies selected by the remuneration committee all tsr calculations are based on the average of the opening and 
closing share price over a thirty day period prior to the commencement and the end of the performance period
the absolute tsr growth target requires the company’s tsr over the three year performance period to grow by more than 25 for 
tsr growth between 25 and 100 the half of the option which is subject to the absolute tsr growth target vests on a straightline 
basis from nil vesting at 25 growth to 100 vesting at 100 growth there will be no vesting if tsr growth is 25 or less
the comparator group tsr performance target measures the company’s tsr over the three year performance period against the tsr 
of a group of nine companies selected by the remuneration committee if the company’s tsr performance falls below the median 
performance of the comparator group then the options lapse forthwith if the company is ranked within the top decile of the comparator 
group the options shall vest in full if the company’s tsr performance is ranked between the median position and the top decile of the 
comparator group then the options shall vest on a straight line basis from nil at or below the median position to 100 at the top decile
21 reserves
share capital cumulative share based
premium redemption translation payments retained
account reserve reserve reserve earnings
£000 £000 £000 £000 £000
at 1 october 2012 5893 3896 775 289 7949
transfer from income statement for the year 8597
dividends paid 1917
recognition of share based payments 101
exchange differences 24
actuarial loss recognised in pension scheme 6895
movement on deferred tax relating  
to the pension scheme    1429
at 1 october 2013 5893 3896 751 390 6735
transfer from income statement for the year 5182
dividends paid 2461
recognition of share based payments 98
new shares issued 49
exchange differences 1
actuarial gain recognised in pension scheme 1068
movement on deferred tax relating  
to the pension scheme    214
at 30 september 2014 5942 3896 752 292 3160
there is no available analysis of goodwill written off against reserves in respect of subsidiaries that were acquired prior to 1989 
and therefore in accordance with the guidance of ifrs 3 the directors are not able to state this figure
capital redemption reserve
this reserve represents the combined impact of share buybacks in previous years
cumulative translation reserve
this reserve represents the foreign exchange movement on translating the opening net assets of lovell america inc
share based payments reserve
renew holdings 2004 executive share option scheme
114280 options were exercised during the year 2013 1504741 
following the exercise of all outstanding options under this scheme the fair value of those options as assessed at the date of grant has 
been charged against the share payments reserve £259000 has been credited 2013 nil to administrative expenses renew holdings plc
annual report and accounts 2014
accounts
72
notes to the accounts continued
21 reserves continued
share based payments reserve continued
renew holdings plc long term incentive plan
fair value has been independently measured by pricewaterhousecoopers llp using a monte carlo model methodology 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 board’s estimate of shares that will eventually vest
£161000 has been charged 2013 £101000 to administrative expenses there is no impact on net assets since an equivalent 
amount has been credited to the share based payments reserve no options were exercised during the year the value per option 
represents the fair value of the option less the consideration payable
the expected volatility has been calculated based on weekly historical volatility of the company’s share price over the three years prior to the 
date of grant the risk free rate of return has been based on the yields available on three year uk government bonds as at the date of grant
options granted under the renew holdings plc long term incentive plan over the company’s ordinary shares at 30 september 2014 
were as follows
date of grant 2 march 2012 20 december 2012 3 january 2014 total
awards outstanding at 30 september 2014
– directors 400000 400000 253165 1053165
exercise price 00p 00p 00p — 
price at date of grant 750p 870p 1800p — 
maximum option life 10 years 10 years 10 years — 
assumed option life for purposes of valuation 3 years 3 years 3 years — 
expected volatility 46 36 32 — 
dividend yield 40 36 20 — 
risk free interest rate 043 048 103 — 
value per option 400p 300p 875p — 
22 capital and leasing commitments 
land and total total
buildings other 2014 2013
£000 £000 £000 £000
commitments under noncancellable operating leases
under one year 2610 1043 3653 2570
two to five years 7659 1201 8860 5701
five or more years 12850 — 12850 15795
23119 2244 25363 24066
with regard to the operating leases held by the group as lessor the group recognised £362000 2013 £1006000 of rental income 
in the income statement for 2014 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 2014 2013
£000 £000 £000 £000
receivables under noncancellable operating leases
under one year 153 — 153 195
two to five years 295 — 295 400
five or more years 48 — 48 95
496 — 496 690
the group had no capital commitments at 30 september 2014 2013 £229000
23 contingent liabilities
under the terms of the group’s banking agreement security over the group’s assets has been granted to the group’s bankers
24 employee benefits retirement benefit obligations
defined benefit pension schemes
the group operates two defined benefit pension schemes the lovell pension scheme and the amco pension scheme both schemes 
have been closed to new members and to further benefits accrual for many years
ias 19 “employee benefits”
the directors have adopted the accounting required by ias 19 with effect from the transition date the directors have discussed the 
assumptions used in determining the actuarial valuations set out below with independent pensions advisors and have determined that 
they are appropriate the lovell scheme’s valuation at 30 september 2014 shows a surplus of £740000 based on the assumptions set 
out below the amco scheme shows a surplus of £716000 based on the assumptions used in its valuation which are similar to those 
used for the lovell scheme except where the directors in consultation with the scheme’s advisors consider it appropriate to vary them 
due to the different characteristics of the amco scheme and its membership profile the directors have determined that it is 
appropriate to recognise these surpluses as having reviewed the rules of both schemes they are of the view that the employer 
has an unconditional right to them renew holdings plc
annual report and accounts 2014 73
accounts
24 employee benefits retirement benefit obligations continued
ias 19 “employee benefits” continued
the following disclosures required by ias 19 have been based on the most recent actuarial valuation as at 30 september 2014 
carried out by lane clark  peacock llp consulting actuaries in respect of the lovell scheme and capita employee benefits 
consulting ltd in respect of the amco scheme using the following assumptions
as at as at as at
30 september 30 september 30 september
2014 2013 2012
lovell pension scheme
rate of increase in salaries 40 40 40
lpi increases to pensions in payment 30 31 32
discount rate 39 45 52
inflation assumption cpi 31 22 25
inflation assumption rpi 21 32 32
increases in deferred pensions 31 22 31
amco pension scheme
rate of increase in salaries 33 32 40
lpi increases to pensions in payment 27 27 27
discount rate 39 45 44
inflation assumption cpi 23 22 20
inflation assumption rpi 33 32 27
increases in deferred pensions 23 22 27
the mortality tables adopted for the valuation of the lovell scheme are the s1na tables with future improvements in line with the 
continuing mortality investigations 2013 model with long term improvement rates of 125 per annum for both males and females 
the directors believe that this analysis provides a more reliable estimate of the mortality characteristics of the scheme’s membership 
under these assumptions a 60 year old male pensioner is forecast to live for a further 27 7 years and the life expectancy of a male aged 
60 in 2033 is 299 years
the mortality tables adopted for the valuation of the amco scheme are the s1pa mortality tables based on the mortality experience of 
pension scheme members with projected longevity improvements and with an additional allowance for future longevity improvements 
known as the long cohort adjustment the directors believe that this analysis provides a more reliable estimate of the mortality 
characteristics of the scheme’s membership under these assumptions a 65 year old male pensioner is forecast to live for a further 
216 years and the life expectancy of a male aged 65 in 2034 is 234 years
the assets in the lovell scheme were
value as at value as at value as at
30 september 30 september 30 september
2014 current 2013 current 2012 current
£000 allocation £000 allocation £000 allocation
annuities 43410 30 43136 34 44797 35
diversified portfolio 101002 69 84631 66 83187 65
cash 1180 1 19 — 158 —
total 145592 100 127748 100 127826 100
during 2011 the trustees of the lovell scheme in consultation with the directors used scheme assets to purchase annuities which 
match certain pension liabilities in a transaction known as a “buy in” this asset provides protection against falls in gilt yields and risks 
in the performance of other asset classes 
the assets in the amco scheme were
value as at value as at value as at
30 september 30 september 30 september
2014 current 2013 current 2012 current
£000 allocation £000 allocation £000 allocation
annuities 7270 51 6950 52 — —
diversified portfolio 6427 45 5951 44 6358 44
gilts — — — — 3556 24
bonds — — — — 4195 29
cash 585 4 594 4 406 3
total 14282 100 13495 100 14515 100
during 2013 the trustees of the amco scheme in consultation with the directors used scheme assets to purchase annuities which 
match certain pension liabilities in a transaction known as a “buy in” this asset provides protection against falls in gilt yields and risks 
in the performance of other asset classes  renew holdings plc
annual report and accounts 2014
accounts
7 4
notes to the accounts continued
24 employee benefits retirement benefit obligations continued
ias 19 “employee benefits” continued
the following amounts at 30 september were measured in accordance with the requirements of ias 19
lovell pension scheme
2014 2013
£000 £000
movements in scheme assets and obligations
total fair value of scheme assets brought forward 127768 127826
interest on scheme assets 5664 5537
employer contributions 2917 2745
benefits paid 7105 7172
actual return on scheme assets less interest on scheme assets 16348 1168
total fair value of scheme assets carried forward 145592 127768
present value of scheme obligations brought forward 131313 128395
interest on scheme obligations 5751 5494
current service costs 59 53
benefits paid 7105 7172
actuarial gains due to experience on benefit obligation — 80
actuarial lossesgains due to changes in financial assumptions 11041 502
actuarial losses due to changes in demographic assumptions 3793 5125
total fair value of scheme obligations carried forward 144852 131313
surplusdeficit in the scheme 740 3545
deferred tax 148 709
net surplusdeficit 592 2836
amount charged to operating profit
current service cost 59 53
59 53
amount chargedcredited to other financial income
interest on scheme assets 5664 5537
interest on scheme obligations 5751 5494
net pension interest 87 43
amounts recognised in the statement of comprehensive income
actual return on scheme assets less interest on scheme assets 16348 1168
actuarial losses due to changes in assumptions on scheme obligations 14834 4543
actuarial gainloss 1514 5711
movement in the net scheme surplusdeficit during the year
net scheme deficit brought forward 3545 569
current service cost 59 53
cash contribution 2917 2745
other finance costsincome 87 43
actuarial gainloss 1514 5711
net scheme surplusdeficit carried forward 740 3545 renew holdings plc
annual report and accounts 2014 75
accounts
24 employee benefits retirement benefit obligations continued
ias 19 “employee benefits” continued
the following amounts at 30 september were measured in accordance with the requirements of ias 19
amco pension scheme
2014 2013
£000 £000
movements in scheme assets and obligations
total fair value of scheme assets brought forward 13495 14515
expected return on scheme assets 550 543
employer contributions 200 201
benefits paid 694 797
actual return on scheme assets less interest on plan assets 731 967
total fair value of scheme assets carried forward 14282 13495
present value of scheme obligations brought forward 12533 12695
interest on scheme obligations 550 543
benefits paid 694 797
actuarial losses due to changes in financial and demographic assumptions 1177 92
total fair value of scheme obligations carried forward 13566 12533
surplus in the scheme 716 962
deferred tax 143 192
net surplus 573 770
amount credited to other financial income
interest on scheme assets 550 543
interest on scheme obligations 550 543
net pension interest — —
amounts recognised in the statement of comprehensive income
actual return on scheme assets less interest on scheme assets 731 967
actuarial losses due to changes in assumptions on scheme obligations 1177 92
actuarial loss 446 1059
movement in the net scheme surplus during the year
net scheme surplus brought forward 962 1820
cash contribution 200 201
actuarial loss 446 1059
net scheme surplus carried forward 716 962
lovell pension scheme
2014 2013 2012 2011 2010
actual return on scheme assets less interest 
on scheme assets £16348000 £1168000 £6891000 £10685000 £13114000
as a percentage of the assets at the end of the year 112 09 54 90 104
experience gains on scheme obligations — — — £1349000 £2100000
as a percentage of the obligations at the end 
of the year — — — 11 17
total amount recognised in the statement 
of comprehensive income £1514000 £5711000 £3972000 £5151000 £1164000
as a percentage of the obligations at the end 
of the year 10 09 31 43 09
the lovell scheme has been in operation for many years and after taking advice from the group’s pensions advisors the directors 
have determined that it is not possible to allocate the assets and liabilities of the scheme between the various group companies 
as permitted by ias 19 the group has taken advantage of the multiemployer exemption and the surplusdeficit of the scheme is 
accounted for as an unallocated consolidation adjustment renew holdings plc
annual report and accounts 2014
accounts
76
notes to the accounts continued
24 employee benefits retirement benefit obligations continued
ias 19 “employee benefits” continued
amco pension scheme
2014 2013 2012 2011
actual return on scheme assets less interest on scheme assets £731000 £967000 £1346000 £58000
as a percentage of the assets at the end of the year 51 72 93 04
experience gains on scheme obligations — — — £490000
as a percentage of the obligations at the end of the year — — — 41
total amount recognised in the statement of comprehensive income £446000 £1059000 £530000 £114000
as a percentage of the obligations at the end of the year 33 84 42 10
the amco scheme’s sole employer is the company’s wholly owned subsidiary amalgamated construction ltd  
defined contribution pension scheme
the group operates a number of defined contribution pension schemes and individual stakeholder pension plans for its employees 
the group made contributions of £2669000 2013 £2454000 into these plans during the year there are also £152000 
2013 £117000 of accruals relating to these plans
25 related parties
the group has a related party relationship with its key management personnel who are the main board directors b w may j samuel 
p scott r j harrison j bishop and d m forbes whose total compensation amounted to £1383000 all of which was represented 
by shortterm employment benefits
there were no other transactions with key management personnel in the year
26 acquisition of subsidiary undertaking – clarke telecom ltd
on 29 april 2014 the company acquired the whole of the issued share capital of clarke telecom ltd “clarke” for a consideration 
of £171m all of which was paid in cash the acquisition was funded from the group’s cash resources and a four year loan of £12m 
provided by hsbc bank plc
the value of the assets and liabilities of clarke at the date of acquisition were
book value adjustments fair value
£000 £000 £000
noncurrent assets
intangible assets – goodwill 1294 9849 11143
– other — 3710 3710
property plant and equipment 1254 — 1254
deferred tax assets 1074 504 570
3622 13055 16677
current assets
inventories 253 — 253
trade and other receivables 9371 — 9371
cash and cash equivalents 383 — 383
10007 — 10007
total assets 13629 13055 26684
noncurrent liabilities
obligations under finance leases 407 — 407
407 — 407
current liabilities
trade and other payables 7625 1191 8816
obligations under finance leases 257 — 257
current tax liability 151 — 151
8033 1191 9224
total liabilities 8440 1191 9631
   
net assets 5189 11864 17053
goodwill of £11143000 arises on acquisition and will be reviewed for impairment one year after the acquisition as permitted by ifrs 
3 the goodwill is attributable to the expertise and workforce of the acquired business other intangible assets provisionally valued 
at £3710000 representing customer relationships and contractual rights were also acquired and will be amortised over their 
useful economic life in accordance with ifrs 3 deferred tax has been provided on this amount amortisation of this intangible asset 
commenced from may 2014 
fair value adjustments arising from the acquisition
in accordance with ifrs 3 the board will review the fair value of assets and liabilities using information available up to 12 months 
after the date of acquisition fair value has been calculated using level 3 inputs as defined by ifrs 13 renew holdings plc
annual report and accounts 2014 77
accounts
26 acquisition of subsidiary undertaking – clarke telecom ltd continued
fair value adjustments arising from the acquisition continued
trade and other payables
subsequent to the date of acquisition two loss making contracts have been identified resulting in a fair value adjustment of £10m 
contract losses have been calculated based on projected cash flows from the date of acquisition until forecast contract completion 
date accruals have been adjusted by £02m to ensure that holiday pay is consistent with ias 19 employee benefits and bonus 
accruals are aligned with group accounting policies deferred tax assets have been adjusted accordingly
goodwill impairment review
the board has reviewed the goodwill arising on acquisition for impairment as required by ifrs 3 no such impairment was identified
if the acquisition of clarke had occurred on 1 october 2013 group revenue would have been approximately £482m and profit from 
continuing activities for the year ended 30 september 2014 would have been approximately £12m
27 acquisition of subsidiary undertaking – forefront group ltd
on 1 august 2014 the company acquired the whole of the issued share capital of forefront group ltd “forefront” for a consideration 
of £148m all of which was paid in cash the acquisition was funded from the group’s cash resources and a four year loan of £12m 
provided by hsbc bank plc
the value of the assets and liabilities of forefront at the date of acquisition were
book value adjustments fair value
£000 £000 £000
noncurrent assets
intangible assets – goodwill — 9919 9919
– other — 2332 2332
property plant and equipment 4030 — 4030
4030 12251 16281
current assets
inventories 284 — 284
trade and other receivables 5474 — 5474
current tax asset 62 — 62
5820 — 5820
total assets 9850 12251 22101
noncurrent liabilities
obligations under finance leases 948 — 948
deferred tax liabilities 109 465 574
1057 465 1522
current liabilities
bank overdraft 646 — 646
trade and other payables 5072 8 5080
obligations under finance leases 37 — 37
5755 8 5763
total liabilities 6812 473 7285
   
net assets 3038 11778 14816
goodwill of £9919000 arises on acquisition and will be reviewed for impairment one year after the acquisition as permitted by ifrs 3 
the goodwill is attributable to the expertise and workforce of the acquired business other intangible assets provisionally valued 
at £2332000 representing customer relationships and contractual rights were also acquired and will be amortised over their 
useful economic life in accordance with ifrs 3 deferred tax has been provided on this amount amortisation of this intangible asset 
commenced from august 2014
fair value adjustments arising from the acquisition
in accordance with ifrs 3 the board will review the fair value of assets and liabilities using information available up to 12 months 
after the date of acquisition fair value has been calculated using level 3 inputs as defined by ifrs 13
trade and other payables
accruals have been adjusted to ensure that holiday pay is consistent with ias 19 employee benefits deferred tax has been 
adjusted accordingly
goodwill impairment review
the board has reviewed the goodwill arising on acquisition for impairment as required by ifrs 3 no such impairment was identified
if the acquisition of forefront had occurred on 1 october 2013 group revenue would have been approximately £486m and profit for 
the year from continuing activities ended 30 september 2014 would have been approximately £11m renew holdings plc
annual report and accounts 2014
accounts
78
notes to the accounts continued
28 acquisition of subsidiary undertaking – lewis civil engineering ltd
on 9 august 2013 the company acquired the whole of the issued share capital of lewis civil engineering ltd “lewis” for 
a consideration of £109m of which £80m was paid in cash and £29m in deferred consideration immediately following the 
acquisition the deferred consideration was satisfied by transferring noncash assets to the value of £29m to the vendors
the value of the assets and liabilities of lewis at the date of acquisition were
fair value fair value
as reported at as restated at
 30 september hindsight 30 september
book value adjustments 2013 adjustments 2013
£000 £000 £000 £000 £000
noncurrent assets
intangible assets – goodwill 260 5882 6142 414 6556
– other — 2209 2209 — 2209
property plant and equipment 5616 — 5616 492 5124
deferred tax assets 113 — 113 — 113
5989 8091 14080 78 14002
current assets
inventories 591 — 591 — 591
trade and other receivables 4063 — 4063 — 4063
cash and cash equivalents 1703 — 1703 — 1703
6357 — 6357 — 6357
total assets 12346 8091 20437 78 20359
noncurrent liabilities
obligations under finance leases 1511 — 1511 — 1511
deferred tax liabilities — 442 442 98 344
1511 442 1953 98 1855
current liabilities
borrowings 188 — 188 — 188
trade and other payables 6105 — 6105 20 6125
obligations under finance leases 992 — 992 — 992
current tax liabilities 300 — 300 — 300
7585 — 7585 20 7605
total liabilities 9096 442 9538 78 9460
     
net assets 3250 7649 10899 — 10899
fair value adjustments arising from the acquisition
in accordance with ifrs 3 the board reviewed the fair value of assets and liabilities using information available up to 12 months 
after the date of acquisition fair value has been calculated using level 3 inputs as defined by ifrs 13
property plant and equipment
the directors reviewed the depreciation policy for property plant and equipment which is now aligned with the group policy the impact 
was to reduce net assets increase deferred tax assets and goodwill these adjustments required the restatement of the group balance 
sheet as at 30 september 2013 there was no impact on the group profit for the years ending 30 september 2013 or 2014
goodwill impairment review
the board also reviewed the goodwill arising on acquisition for impairment as required by ifrs 3 no such impairment was identified 
goodwill of £6142000 was acquired on the acquisition of lewis civil engineering ltd “lewis” and was reviewed for impairment one 
year after the acquisition and then will be on an ongoing basis as required by ifrs 3 as a result of the fair value adjustment above 
goodwill increased by £414000 renew holdings plc
annual report and accounts 2014 79
accounts
company balance sheet
at 30 september
2014 2013
note £000 £000
fixed assets
tangible assets e 651 659
investments f 101449 69560
102100 70219
current assets
stocks and work in progress g 226 91
debtors due within one year h 40436 27228
cash at bank 66 —
40728 27319
creditors amounts falling due in less than one year i 83104 60719
net current liabilities 42376 33400
total assets less current liabilities 59724 36819
creditors amounts falling due after more than one year j 15500 —
net assets 44224 36819
capital and reserves
share capital l 6152 6140
share premium account m 5942 5893
capital redemption reserve m 3896 3896
share based payments reserve m 292 390
profit and loss account m 27942 20500
equity shareholders’ funds n 44224 36819
approved by the board and signed on its behalf by
r j harrison obe
chairman
25 november 2014 renew holdings plc
annual report and accounts 2014
accounts
80
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 in determining that the going concern basis is appropriate the directors have reviewed budgets including 
cashflow forecasts and concluded that the company has adequate cash resources to continue trading for the foreseeable future
a summary of the more important company accounting policies which have been applied consistently is set out below
ii investments in subsidiaries
investments in subsidiaries are recorded at cost less provision for impairment
iii tangible fixed assets
tangible fixed assets are recorded at cost 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 – shorter of fifty years and
and buildings  period of lease
plant vehicles and equipment  – three to ten 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 either a black scholes or a monte carlo valuation model as was deemed appropriate by the 
directors for the relevant options’ conditions 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 directors’ estimate of shares that will eventually vest
vi deferred taxation
the payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items for 
accounting and taxation purposes full provision for deferred taxation is made under the liability method without discounting 
on timing differences that have arisen but not reversed by the balance sheet date unless such provision is not permitted by 
frs 19 “deferred tax”
deferred tax assets are recognised to the extent it is considered more likely than not that they will be recovered in accordance 
with frs 19 deferred tax is not provided for on
a revaluation gains on land and buildings unless there is a binding agreement to sell them at the balance sheet date 
b gains on the sale of 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
vii foreign currencies
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted rate if the 
transaction is covered by a forward exchange contract monetary assets and liabilities denominated in foreign currencies are 
retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate exchange 
differences are taken to the profit and loss account
viii defined benefit pension scheme
the company has adopted the requirements of frs 17 “retirement benefits” the directors have determined that it is not possible 
to allocate the assets and liabilities of the scheme between the various group companies accordingly the scheme is not accounted 
for in the company’s balance sheet however any increase in the present value of liabilities within the defined benefit scheme 
expected to arise from employee service in the period is charged to operating profit in respect of the company’s employees
ix defined contribution pension plans
contributions to defined contribution pension plans are charged to the profit and loss account as incurred
x dividends
dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately 
authorised and are no longer at the discretion of the company unpaid dividends that do not meet these criteria are disclosed 
in the notes to the financial statements
xi stocks and work in progress
stocks comprise land held for development and are stated at the lower of cost and net realisable value cost includes appropriate 
attributable overheads and excludes interest where necessary provision is made for obsolete slow moving and defective stocks
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 £9903000 2013 £11226000
the audit fee charged within the profit and loss account amounted to £38000 2013 £51000 renew holdings plc
annual report and accounts 2014 81
accounts
c employee numbers and remuneration
2014 2013
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 27 26
at 30 september 27 26
cost of staff including executive directors during the year amounted to
£000 £000
wages and salaries 2305 1940
social security costs 272 254
other pension costs 168 194
share based payments 98 101
2647 2489
directors’ emoluments
£000 £000
aggregate emoluments 1383 1114
highest paid director aggregate emoluments 677 556
details of individual directors’ emoluments and pension contributions can be found in the directors’ remuneration report
d dividends
2014 2013
penceshare penceshare
interim related to the year ended 30 september 2014 150 110
final related to the year ended 30 september 2013 250 210
total dividend paid 400 320
£000 £000
interim related to the year ended 30 september 2014 923 658
final related to the year ended 30 september 2013 1538 1259
total dividend paid 2461 1917
dividends are recorded only when authorised and are shown as a movement in equity rather than as a charge in the profit and 
loss account the directors are proposing that a final dividend of 350p per ordinary share be paid in respect of the year ended 
30 september 2014 this will be accounted for in the 201415 financial year
e tangible fixed assets
freehold land long leasehold plant vehicles
and buildings land and buildings  equipment total
£000 £000 £000 £000
cost
at 1 october 2013 701 75 314 1090
additions — — 5 5
at 30 september 2014 701 75 319 1095
depreciation
at 1 october 2013 47 75 309 431
charge for year 10 — 3 13
at 30 september 2014 57 75 312 444
net book value
at 30 september 2014 644 — 7 651
at 30 september 2013 654 — 5 659
  renew holdings plc
annual report and accounts 2014
accounts
82
notes to the company accounts continued
f investments
subsidiary
undertakings
£000
shares at cost
at 1 october 2013 203539
additions 31889
at 30 september 2014 235428
provisions
at 1 october 2013 and 30 september 2014 133979
net book value
at 30 september 2014 101449
at 30 september 2013 69560
on 29 april 2014 the company acquired the whole of the issued share capital of clarke telecom ltd for a consideration of £171m
on 1 august 2014 the company acquired the whole of the issued share capital of forefront group ltd for a consideration of £148m
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
2014 2013
£000 £000
undeveloped land 226 91
h debtors 
2014 2013
£000 £000
due within one year
trade debtors 20 42
due from subsidiary undertakings 34580 25660
other debtors 2566 981
deferred tax 420 24
prepayments and accrued income 2850 521
40436 27228
i creditors amounts falling due within one year 
2014 2013
£000 £000
bank loans and overdrafts 42021 24290
trade creditors 353 519
other taxation and social security 673 1450
due to subsidiary undertakings 30712 28806
other creditors 149 546
accruals and deferred income 9196 5108
83104 60719
j creditors falling due after more than one year
2014 2013
£000 £000
bank loan 15500 —
bank loans and overdrafts repayable
within one year 42021 24290
within two to five years 15500 —
57521 24290 renew holdings plc
annual report and accounts 2014 83
accounts
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 unhedged portion of an intercompany loan at 30 september 2014 the unhedged 
portion of the intercompany loan was 1771000 2013 771000
the company’s operations are denominated in sterling
fair value of financial assets and liabilities
there are no material differences between fair value and the book value of the company’s financial assets and liabilities
l share capital
2014 2013
£000 £000
allotted called up and fully paid
61517948 2013 61403668 ordinary shares of 10p each 6152 6140
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
during the year 114280 ordinary shares were issued following the exercise of options under the approved element of the renew 
holdings plc executive share option scheme
share options
renew holdings 2004 executive share option scheme
the company 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
all options granted under this scheme have vested and have been exercised
renew holdings plc long term incentive plan
at the annual general meeting held on 25 january 2012 the shareholders approved a new long term incentive plan “ltip” which 
replaced the renew holdings plc 2004 executive share option scheme as the directors believed that the ltip was a more effective 
method of aligning executive and shareholder interests
on 2 march 2012 the company granted options to subscribe for 400000 ordinary shares pursuant to the ltip on 20 december 
2012 options to subscribe for a further 400000 ordinary shares were granted on 3 january 2014 options to subscribe for a further 
253165 ordinary shares were granted
the options are exercisable at a nominal cost from 2 march 2015 in respect of those granted on 2 march 201 2 and from 20 december 2015 
in respect of those granted on 20 december 2012 subject to the achievement of certain performance criteria
vesting of one half of the options is dependent on absolute growth in the company’s total shareholder return ‘tsr’ and the other 
half is dependent on the company’s tsr performance as compared to the tsr achieved by other companies in a comparator group 
of nine companies selected by the remuneration committee all tsr calculations are based on the average of the opening and 
closing share price over a thirty day period prior to the commencement and the end of the performance period
the absolute tsr growth target requires the company’s tsr over the three year performance period to grow by more than 25 
for tsr growth between 25 and 100 the half of the option which is subject to the absolute tsr growth target vests on a straightline 
basis from nil vesting at 25 growth to 100 vesting at 100 growth there will be no vesting if tsr growth is 25 or less
the comparator group tsr performance target measures the company’s tsr over the three year performance period against 
the tsr of a group of nine companies selected by the remuneration committee if the company’s tsr performance falls below the 
median performance of the comparator group then the options lapse forthwith if the company is ranked within the top decile 
of the comparator group the options shall vest in full if the company’s tsr performance is ranked between the median position 
and the top decile of the comparator group then the options shall vest on a straight line basis from nil at or below the median 
position to 100 at the top decile renew holdings plc
annual report and accounts 2014
accounts
84
notes to the company accounts continued
m reserves
share capital share based
premium redemption payments profit  loss
account reserve reserve account
£000 £000 £000 £000
at 1 october 2013 5893 3896 390 20500
transfer from profit and loss account for the year 9903
recognition of share based payments 98
new shares issued 49
dividends paid   2461
at 30 september 2014 5942 3896 292 27942
share based payments reserve
renew holdings 2004 executive share option scheme
114280 options were exercised during the year 2013 1504741 
following the exercise of all outstanding options under this scheme the fair value of those options as assessed at the date of grant 
has been charged against the share payments reserve £259000 has been credited 2013 nil to administrative expenses
renew holdings plc long term incentive plan
fair value has been independently measured by pricewaterhousecoopers llp using a monte carlo model methodology 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 board’s estimate of shares that will eventually vest
£161000 has been charged 2013 £101000 to administrative expenses there is no impact on net assets since an equivalent 
amount has been credited to the share based payments reserve no options were exercised during the year the value per option 
represents the fair value of the option less the consideration payable
the expected volatility has been calculated based on weekly historical volatility of the company’s share price over the three years 
prior to the date of grant the risk free rate of return has been based on the yields available on three year uk government bonds 
as at the date of grant
options granted under the renew holdings plc long term incentive plan over the company’s ordinary shares at 30 september 2014 
were as follows
date of grant 2 march 2012 20 december 2012 3 january 2014 total
awards outstanding at 30 september 2014
– directors 400000 400000 253165 1053165
exercise price 00p 00p 00p
price at date of grant 750p 870p 1800p
maximum option life 10 years 10 years 10 years
assumed option life for purposes of valuation 3 years 3 years 3 years
expected volatility 46 36 32
dividend yield 40 36 20
risk free interest rate 043 048 103
value per option 400p 300p 875p
n reconciliation of movements in equity shareholders’ funds 
2014 2013
£000 £000
profit for the year 9903 11226
dividends paid 2461 1917
issue of ordinary shares 61 150
recognition of share based payments 98 101
at 1 october 2013 36819 27259
at 30 september 2014 44224 36819
o capital and leasing commitments
land and total total
buildings other 2014 2013
£000 £000 £000 £000
annual commitments under noncancellable 
operating leases expiring in
under one year — 12 12 210
two to five years 125 8 133 145
five or more years 776 — 776 741
901 20 921 1096
the company had no capital commitments at 30 september 2014 2013 £nil  renew holdings plc
annual report and accounts 2014 85
accounts
p contingent liabilities
the company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the normal course 
of business of its subsidiary undertakings
under the terms of the group’s banking agreement security over the company’s assets has been granted to the group’s bankers
the company is a participant together with a number of subsidiary undertakings in the group banking arrangements and 
as a result has risks associated with the financial status and performance of the other companies within the group
q defined contribution pension scheme
the company operates a number of defined contribution pension schemes and individual stakeholder pension plans for its employees
the company made contributions of £168000 2013 £194000 into these plans during the year there are also £15000 
2013 £10000 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 as contractors 
in engineering services and specialist building 
the principal subsidiary undertakings are shown below
incorporation  proportion of
principal place ordinary shares
of business held by the company
subsidiary undertakings
britannia construction ltd owned by subsidiary england and wales 100
walter lilly  co ltd owned by subsidiary england and wales 100
seymour civil engineering contractors ltd owned by subsidiary england and wales 100
amalgamated construction ltd owned by subsidiary england and wales 100
vhe construction plc owned by renew holdings plc england and wales 100
shepley engineers ltd owned by renew holdings plc england and wales 100
lewis civil engineering ltd owned by renew holdings plc england and wales 100
clarke telecom ltd owned by renew holdings plc england and wales 100
forefront group ltd owned by renew holdings plc england and wales 100
lovell america inc owned by renew holdings plc usa 100
s related parties 
the company has a related party relationship with its key management personnel who are the main board directors b w may 
j samuel p scott r j harrison j bishop and d m forbes whose total compensation amounted to £1383000 all of which was 
represented by shortterm employment benefits
there were no other transactions with key management personnel in the year renew holdings plc
annual report and accounts 2014
accounts
86
directors officers and advisors
directors
r j harrison obe nonexecutive chairman 
b w may  chief executive 
j samuel fca group finance director 
p scott  group engineering services director 
j bishop fca independent nonexecutive 
d m forbes independent nonexecutive
registrars
capita asset services 
the registry 
34 beckenham road 
beckenham 
kent 
br3 4tu
auditor
kpmg llp 
1 the embankment 
neville street 
leeds 
ls1 4dw 
financial pr
walbrook pr ltd 
4 lombard street 
london 
ec3v 9hd
nominated advisor and broker
numis securities limited 
london stock exchange building 
10 paternoster square 
london  
ec4m 7lt
company secretary
j samuel fca
company number
650447
registered address
yew trees 
main street north 
aberford 
leeds 
ls25 3aa
website address
wwwrenewholdingscom renew holdings plc
annual report and accounts 2014 87
accounts
shareholder information
shareholder information
annual general meeting 28 january 2015
results   announcement of interim results – may 2015
    preliminary announcement of full year results – november 2015
share portal 
the share portal is a secure online site where you can manage your shareholding quickly and easily to register for the share portal 
just visit wwwcapitashareportalcom 
dividend reinvestment plan
capita’s dividend reinvestment plan offers a convenient way for shareholders to build up their shareholding by using dividend 
money to purchase additional shares for more information please call 0871 664 0381 calls to this number cost 10p per minute plus 
network extras or if calling from overseas 44 20 8639 3402 lines are open 900am to 530pm monday to friday excluding public 
holidays alternatively you can email sharescapitacouk or log on to wwwcapitashareportalcom
donate your shares to charity
if you have only a small number of shares which are uneconomical to sell you may wish to donate them to charity free of charge 
through sharegift registered charity 10528686 find out more at wwwsharegiftorguk or by telephoning 020 7930 3737
share fraud warning
share fraud includes scams where investors are called out of the blue and offered shares that often turn out to be worthless or 
nonexistent or an inflated price for shares they own these calls typically come from fraudsters operating in ‘boiler rooms’ that are 
mostly based abroad if you are offered unsolicited investment advice you should
  check the financial services register at http wwwfcaorguk to ensure they are authorised
  call the fca consumer helpline on 0800 1 1 1 6768 or use the share fraud reporting form at http wwwfcaorgukscams
if you use an unauthorised firm you will not have access to the financial ombudsman service or financial services compensation 
scheme fscs
capita’s customer support centre
by phone uk – 0871 664 0300 uk calls cost 10p per minute plus network extras  from overseas  44 20 8639 3399 
lines are open 900am to 530pm monday to friday excluding public holidays
by email  shareholderenquiriescapitacouk renew holdings plc
annual report and accounts 2014 88
accounts
our subsidiary businesses
amco
whaley road 
barugh 
barnsley 
south yorkshire 
s75 1ht 
tel 01226 243413
shepley engineers
robinson house 
westlakes science park 
moor row 
cumbria 
ca24 3hy 
tel 01946 599 022
seymour civil engineering
30–35 navigation point 
hartlepool 
ts24 0uq 
tel 01429 233 521
vhe
whaley road 
barugh 
barnsley 
south yorkshire 
s75 1ht 
tel 01226 320150
britannia
britannia house 
staverton technology park 
cheltenham 
gloucestershire 
gl51 6tq 
tel 01452 859 880
lewis civil engineering
mwyndy cross industries 
cardiff road 
pontyclun 
rhondda cynon taff 
cf72 8pn 
tel 01443 449200
walter lilly
knollys house 
17 addiscombe road 
croydon 
surrey 
cr0 6sr 
tel 020 8730 6200
clarke t elecom
unit e 
madison place 
northampton road 
manchester 
m40 5ag 
tel 0161 785 4500
forefront
30 stephenson road 
leigh on sea 
essex 
ss9 5ly 
tel 01702 507 440 discover more online
wwwrenewholdingscom
keep up to date with our corporate website
  renew holdings plc 
yew trees 
main street north 
aberford 
leeds  
ls25 3aa 
tel 0113 281 4200 
fax 0113 281 4210 
web wwwrenewholdingscom
company number 650447 
registered in england  wales
renew holdings plc annual report and accounts 2014


Summary:
 renew holdings plc
annual report and accounts 2014
strategic report
14
chairman’s statement
a strong year for renew
results 
record results for the year ended 
30 september 2014 demonstrate 
the group’s continued progress as a 
leading multidisciplinary engineering 
services provider supporting critical 
uk infrastructure 
group revenue and operating profit prior 
to exceptional items amortisation and 
discontinued operations were both up 
64 to £4645m 2013 £2827m and 
£164m 2013 £100m respectively 
group operating margin was maintained 
at 35 2013 35 earnings per share 
prior to exceptional items amortisation 
and discontinued operations increased 
by 68 to 2080p 2013 1238p with 
basic earnings per share on continuing 
activities of 1683p 2013 1662p 
the engineering services business 
has seen growth across all its markets of 
energy environmental and infrastructure 
with revenue up 65 to £3825m 2013 
£2324m engineering services accounts 
for 82 of group revenue 
the largest area of growth was in our 
rail business which experienced high 
levels of demand for emergency repair 
works following last winter’s extreme 
weather conditions alongside a network 
rail “enhanced spend” programme which 
together added £647m of nonrecurring 
revenue our position with network rail 
has been recently strengthened following 
our appointment to seven control period 
5 infrastructure projects frameworks 
with an advertised value of £450m over 
the next five years 
engineering services operating profit 
has seen a 54 increase to £163m 
2013 £106m with an operating margin 
of 43 2013 46 margin reduced 
slightly as much of the additional 
nonrecurring rail revenue referred to 
above was undertaken on a cost 
reimbursable basis with a lower margin 
when the effect of the nonrecurring rail 
activity and acquisitions is excluded from 
our results engineering services 
delivered 18 growth in revenue and 22 
growth in operating profit
specialist building is predominantly 
focused on the high quality residential 
market in london and the home counties 
revenue increased by 62 to £821m 
2013 £506m and operating profit by 
69 to £22m 2013 £13m delivering 
an operating margin of 26 2013 25 
these results exclude those of allenbuild 
limited which has been treated as a 
discontinued business following its sale 
subsequent to the year end 
dividend
the board is proposing a final dividend 
of 350p per share increasing the full year 
dividend by 39 to 50p 2013 360p 
the dividend will be paid on 2 march 2015 
to shareholders on the register as at 
30 january 2015 the board continues 
to grow dividends progressively
order book
the groups contracted order book 
at 30 september 2014 stood at £439m 
2013 £364m a 21 increase with the 
engineering services order book up 20 
to £361m 2013 £301m 
acquisitions 
during the year the group made two 
complementary acquisitions in clarke 
telecom limited a market leader in 
wireless telecoms infrastructure delivery 
for £171m and forefront group ltd 
a leading provider in the gas infrastructure 
market for £148m these strategically 
summary
  record results for the year ended 
30 september 2014
  the engineering services business 
has seen growth across all its 
markets of energy environmental 
and infrastructure
  engineering services operating 
profit has seen a 54 increase 
to £163m
r j harrison obe
chairman renew holdings plc
annual report and accounts 2014 15
strategic report
important acquisitions will be accretive to 
renew’s engineering services operating 
margin as we progress towards our target 
of 5 within this business segment a key 
objective for the next financial year 
disposal
subsequent to the year end the group 
announced the disposal of allenbuild 
limited the new build affordable housing 
part of the group’s specialist building 
business to places for people group 
limited pfp for a total consideration 
of £275m payable in cash pfp has 
acquired 50 of the issued share capital 
for £1375m and will assume 100 
ownership of allenbuild after ten 
outstanding contracts for which the 
group retains the benefit reach practical 
completion which is expected to be in 
about twelve months time
cash
£24m of term loans were taken out to 
finance the group’s acquisitions at the 
year end net debt was £161m 2013 net 
cash £28m which represents only 085 
times 2014 ebitda 
people
the group prides itself on providing a 
safe and rewarding working environment 
for its highly skilled directly employed 
work force our results and ongoing 
success are a testament to the skills 
hard work and commitment of all of the 
group’s employees and the board would 
like to take this opportunity to express 
its gratitude
outlook
the group enters the 201415 financial 
year in a strong position in specialist 
building the group concentrates on 
the high quality residential market 
in london and the home counties 
our expertise is in the fit out and 
refurbishment of prestigious private 
residential projects specialising in 
developing engineering solutions for 
major structural alterations 
in engineering services the group has 
made excellent progress in expanding 
its position as a leading provider of 
engineering support services in the uks 
energy environmental and infrastructure 
markets with strong organic growth 
coupled with two acquisitions into new 
markets we operate in markets mainly 
governed by regulation that undertake 
long term programmes of essential 
nondiscretionary spending to maintain 
critical infrastructure assets the group 
continues to focus its activities on 
these programmes which deliver good 
visibility of future opportunities margin 
enhancement potential and sustainable 
earnings streams 
it remains the boards strategy to 
continue to grow its engineering 
services business both organically 
and through selective acquisitions 
the boards ambition is to grow group 
revenue to over £500m delivering a 
group operating margin of over 45 
within the next three years 
the excellent organic and acquisitive 
growth achieved in the year along with its 
record order book gives the board every 
confidence that the group will continue 
to deliver on its strategic targets
r j harrison obe
chairman
25 november 2014
232
382
2013 2014
214
2012
173
2011
127
2010
engineering services revenue £m
£382m
106
163
2013 2014
96
2012
75
2011
42
2010
engineering services operating profit £m
£163m
82 82
2013 2014
64
2012
49
2011
44
2010
engineering services  of group revenue
82