renew holdings plc annual report  accounts 2007
annual report  accounts   2007
delivering specialist
construction services
djob number90319renewholdings  ra    page 1
renew holdings plc
yew trees main street north
aberford west yorkshire ls25 3aa 
tel 0113 281 4200 fax 0113 281 4210
web wwwrenewholdingscom
company number 650447 
registered in england  wales
djob number90319renewholdings  ra    page 58
90319renewholdingsra cover  71207  1750  page 1 djob number90319renewholdings  ra    page 2
renew delivers specialist
construction services in
engineering and building
through its branded businesses
which operate in robust and
sustainable markets
financial highlights 01
chairman’s statement 02
chief executive’s review 03
financial review 05
review of operations 06
specialist engineering 06
specialist building 09
corporate social responsibility 13
directors’ report 14
directors’ remuneration report 18
corporate governance 21
statement of directors’ responsibilities 23
independent auditors’ report 24
group profit  loss account 25
group statement of 
total recognised gains  losses 25
balance sheets 26
group cash flow statement 27
notes to the accounts 28
shareholder information 50
directors  advisors 51
notice of annual general meeting 52
group businesses 54
produced by salient communications tel 01635 861112
djob number90319renewholdings  ra    page 57
90319renewholdingsra cover  71207  1750  page 2 financial
highlights
turnover 
from ongoing
operations £347 8m
2006 £3417m
profit
before tax £7 2m
2006 £46m
earnings 
per share 119p
2006 100p
net cash
balance at 
30 september £244m
2006 £194m
full year
dividend18p
2006 12p
01
annual report  accounts 2007
djob number90319renewholdings  ra    page 3
90319renewholdingsra text  71207  1921  page 3 02 chairman’s
statement
djob number90319renewholdings  ra    page 4
introduction
i am pleased to report a strong set of
financial results and that the group 
has made further excellent progress 
in line with its strategic objectives 
in specialist engineering we have
continued to grow revenue further
enhanced by the acquisition of seymour
and have maintained our strong margins
in specialist building we have seen
excellent growth in operating margins 
at steady levels of revenue
we are experiencing buoyant demand for
the group’s specialist services in our
chosen market sectors with the group
order book up 21 in the period the
order book also reflects a higher quality
of work founded on strong levels of
repeat business from key clients and a
further increase in the proportion of work
won within our specialist market sectors
which remain robust
we continue to be recognised for the 
high quality and standard of work we 
are consistently delivering to our
customers and have received awards 
and commendations for a number of our
businesses specifically in the areas of
environmental design and innovation
particularly pleasing is the excellent
progress we are making in health 
safety which continues to be a key area
of focus across the group reflected by a
significant reduction in our accident
incidence rate and recognised by a
number of rospa awards
results and dividend
group turnover from ongoing operations
for the year ended 30 september 2007
was £3478m 2006 £3417m and profit
before tax was £72m 2006 £46m
earnings per share were 1185p 
2006 1000p the group’s net cash
balance at 30 september was £244m
2006 £194m after paying for the 
£59m acquisition of seymour outlined
below net assets have increased to
£101m from £53m
the board is proposing a final dividend 
of 12p per share which will be paid 
on 25 february 2008 to shareholders on
the register as at 18 january 2008 
this will result in a dividend of 18p per
share for the full year 2006 12p a 
50 increase reflecting the group’s
progressive dividend policy and the
board’s confidence in the group’s 
future prospects
growth strategy
on 26 july 2007 the group announced
another acquisition in the form of
seymour civil engineering contractors
limited “seymour” the water
engineering services provider for a net
cash consideration of £59m expanding
the group’s specialist engineering
activities into the water sector the
integration of seymour is progressing 
well and the business is trading in line
with our expectations 
as brian may outlines in more detail in 
his chief executive’s review we continue
to seek organic growth in our current
specialist areas of activity whilst 
pursuing further strategic acquisitions in
specialist engineering
management and head office 
on 1 october 2006 john bishop fca
joined the board as nonexecutive
director and on 31 october 2006
arnold wagner obe stepped down from
the board as a nonexecutive director
during the year the group relocated its
head office to aberford near leeds and
streamlined its head office function
certain key appointments were also
made including that of our group lawyer
and company secretary ben feather
who joined renew from hbos after
spending several years with addleshaw
goddard in leeds
auditors
we have been reviewing our
engagements with a number of the
professional advisors to the group and
following a competitive tender process 
in july 2007 the board appointed kpmg
audit plc as auditors in succession to
rsm robson rhodes llp 
outlook
the group is now in a position of
strength all of the performance targets
set at the beginning of the year have
been exceeded we continue to grow
cash backed profits in key areas of the
market where we see further opportunities
for organic growth and there is substantial
work being done in pursuing further
strategic acquisitions the board is
confident that the excellent progress
made during the year will continue 
roy harrison
chairman
27 november 2007 
£72m 
2006 2007 
£46m 
profit before tax £m 10 0
50 0
£244m 
2006 2007 
£194m
net cash £m
90319renewholdingsra text  71207  1921  page 4 03 chief 
executive’s
review
annual report  accounts 2007
djob number90319renewholdings  ra    page 5
overview 
another year of strong performance has
been delivered across all of our business
with profit before tax up 55 this profit
growth has been matched by cash which
remains a primary objective and we have
achieved our target of delivering a 2
group profit before tax a year earlier than
anticipated the group strategy which
has been progressively implemented 
over the last two years is now firmly
established both operationally and
culturally and its benefits are reflected in
these very positive results 
all of our specialist market sectors
continue to demonstrate robust
fundamentals during the year we grew
our specialist engineering activities
organically by over 20 whilst expanding
into new markets through the acquisition
of seymour a specialist contractor in the
water sector this was achieved whilst
maintaining target margins and following
the acquisition specialist engineering is
now expected to account for more than
20 of group turnover 
in specialist building we maintained
turnover at a similar level to last year
while increasing operating profits by
42 with margins up to 14 from
10 this is an excellent achievement
and demonstrates the significant
improvement in risk management as 
we progress towards our target of 2
operating margins in specialist building
within the next two years 
group operating margins increased by
40 during the year and as a result 
we have set a new objective for the
group of achieving an operating profit
margin of at least 25 by 2010 
the group order book has grown by
more than 21 during the period and the
order intake since the end of the financial
year has been very strong the secured
forward order book at 30 september
2007 stood at £252m compared to
£209m a year ago our selective
approach to winning new contracts has
meant the proportion of new orders that
fall within our specialist areas of activity
has increased to nearly 80 the level of
contracts secured from repeat customers
has also increased to 72 our level of
negotiated framework and two stage
tendered work reached 68 this gives
us greater earnings visibility and further
reduces risk both of which remain key
objectives going forward
specialist engineering
i am delighted that the quality of our
specialist engineering work is being
recognised both by our customers and
third parties vhe was awarded the
specialists in construction award from 
construction news and was runner up 
in brownfield briefing’s remediation
innovation awards it was also awarded
the rospa gold medal in may in
recognition of five consecutive years of
gold awards shepley engineers was
awarded a second consecutive rospa
president’s award for an outstanding
performance in health  safety at work
over an eleven year period seymour won
two ceca training awards and was
runner up for the north east ceca
project of the year
in nuclear the largest spend within the
national civil nuclear legacy programme is
at sellafield in cumbria where shepley
engineers has worked continuously for
more than 25 years shepley engineers is
the largest mechanical and electrical
contractor at sellafield with a workforce
in excess of 400 people overall activity is
well balanced between operational asset
support and the decommissioning and
demolition of redundant facilities during
the year shepley engineers was awarded
four longterm frameworks at sellafield
the most important being the major 
multi disciplinary site wide framework
where the company is one of three 
tier 2 contractors alongside amec and 
hertel this framework is worth in 
excess of £25m over the next two years
and includes an option for a further two
year extension
in land remediation vhe was
reappointed as a term contractor by
national grid property limited to
continue remediation works on sites
across the uk this three year framework
contract is worth £10m per annum and
has an option to extend it for a further
two years major contracts with other
clients include the remediation of former
coalfired power stations in rugeley in
staffordshire and stella south near
gateshead both entailed substantial land
reclamation to create clean development
platforms for future housing development
in water the group acquired seymour a
leading civil engineering business in the
north east of england in july 2007
seymour carries out water infrastructure
development and maintenance flood
alleviation and coastal protection and
urban renewal works to the public and
private sectors seymour has a long
standing relationship with northumbrian
water and has recently had its framework
agreement extended until 2011 recent
contracts also include a £6m coastal
protection scheme completed over two
phases at seaton carew and a £1m
contract to install a new raw water 
main at teesside power station the
integration of seymour is progressing 
well and we are confident of growing the
business as part of the enlarged group
building 
£265m
 
engineering 
£69m 
 
building 
£37m 
engineering 
£34m 
turnover 
profit 
90319renewholdingsra text  71207  1921  page 5 04 chief 
executive’s
review
djob number90319renewholdings  ra    page 6
specialist building
our specialist building businesses have
experienced a strong increase in repeat
business as well as a number of 
industry commendations including 
riba rics and breeam awards for
architectural design innovation and
environmental construction 
in social housing allenbuild now has 
six framework agreements with major
housing associations in the south east
we have recently been awarded a £15m
contract by metropolitan housing
association to build 106 new apartments
and retail space in hackney we have a
pipeline of projects with logic homes in
excess of £60m and more than £40m
with other framework partners allenbuild
is actively incorporating modern methods
of construction into its social housing
workload and is committed to achieving
zero defects on all projects 
in retail britannia construction 
secured a number of new clients and
developments including its appointment
as a framework contractor to marks 
spencer and continued to strengthen its
relationships with existing customers 
such as tesco a £66m redevelopment
of fareham town shopping centre for
dominion corporate trustees was started
in the summer for a new 32000 sq ft
extension to the existing shopping mall
allenbuild also completed the £6m north
walk development at the crystal peaks
shopping centre in sheffield for hermes
and secured repeat business with
dransfield properties for the £56m
jasper square development in tunstall
this sector is experiencing a very strong
level of enquiries
in restoration and refurbishment a
notable scheme undertaken by the group
was the £13m restoration of the historic
iron fabric at st pancras station london
we continue to see strong demand from
the high quality residential sector in
london with a number of prestigious 
high quality projects underway we 
also commenced a new framework 
with grosvenor which involves the
refurbishment of several properties in
mayfair and belgravia the £8m
refurbishment of walmsley house into
170 student units for investream was
completed the second project for this
client illustrating the high level of 
repeat business we conduct in this
specialist sector
in science and education walter lilly
enjoyed a successful year with projects
for university college london and the
burlington danes laboratory fit out as part
of the imperial college framework as well
as securing the £205m queen mary
innovation centre construction project for
the queen mary university london work
also continued for longstanding client
glaxosmithkline’s research and
development arm with two laboratory
refurbishment projects allenbuild
commenced the construction of the
£17m rossington all saints secondary
school and sports village for the diocese
of sheffield it has also completed the
main phase of the british library’s £13m
additional storage programme the
world’s first largescale automated
document retrieval complex to use
oxygen depletion technology as a fire
resistance strategy 
property and other activities
the on time and on budget completion of
a major development project for wichford
plc valued at £153m demonstrated how
the group’s various capabilities in
development land remediation and
construction could be brought together
successfully and profitably we continue
to look for other suitable development
opportunities and have recently started
construction of a specialist manufacturing 
building in cumbria for an american
client we also continue to realise surplus
land both in the uk and usa and i am
confident of further land realisations in
200708
people
we continue to attach great importance
to health  safety practices across 
the group i am delighted to report that
during the year we have decreased the
accident incidence rate by 41 which
given our annual target of a 10
reduction is a major achievement 
the improvement in the group’s
performance is a testament to the hard
work and dedication of all of our
employees for which the board is
extremely grateful
strategic update
the benefits of our strategic focus and
improved management practices are
becoming increasingly evident our
specialist activities are also well
positioned in serving robust market
sectors with good potential for growth
this provides an excellent platform for
the future and we will continue to 
expand our presence in our existing 
areas of activity both organically and 
in specialist engineering via further
strategic acquisitions the group’s strong
financial position and cash generation
provides excellent flexibility for funding
any future acquisitions
our goal is within the next three years
for the group’s specialist engineering
activities to increase to at least a third of
group turnover we are targeting group
turnover of at least £500m by 2010
however we will not lose sight of our
primary objective of delivering increased
cash backed profits from progressive
operating margin improvement with the
target of a group operating profit margin
of 25 by the same date
brian may
chief executive
27 november 2007
90319renewholdingsra text  71207  1921  page 6 05 financial
review
annual report  accounts 2007
djob number90319renewholdings  ra    page 7
results
the group’s turnover from ongoing
operations was £3478m 2006 £3417m
with an operating profit of £50m 2006
£35m profit before tax was £72m 
2006 £46m a tax charge of £01m
2006 £14m credit resulted in a profit
after tax for the year of £71m 2006 £60m
accounting policies
the group has continued to prepare its
accounts in accordance with uk gaap
and has made no changes to its
accounting policies during the year
although we have incorporated frs 20
share based payments for the first time
it is required to transition to international
financial reporting standards in 200708
and so the interim results to march 2008
which will be issued in may 2008 will be
prepared under ifrs the group expects
to announce the impact of ifrs on
previously reported results prior to the
announcement of the march 2008 interims
cash generation
the group’s operating performance has
been complemented by strong cash
generation both from operations and
from the continued realisation of surplus
property assets operating activities
generated £219m 2006 £107m of cash
as stocks and work in progress reduced
by over £11m and payments in advance
increased by £39m
the major development project which we
completed in december 2006 yielded
£153m of gross cash the related loan
which was used to fund this project was
repaid and the group then became free
of any material bank borrowings a small
development project has been undertaken
and this has been funded internally with
£13m invested by the year end 
during the year all of the group’s uk
banking was moved to barclays bank plc
facilitating better group cash and
treasury management as a result better
interest income was achieved on short
term deposits
the group’s only borrowings are 
£547000 of finance leases and £165000
of borrowings in lovell america inc at
the year end our net cash position was
£244m compared to £93m last year
after deducting the development loan 
lovell america inc
the group has approximately £12m of
assets in the usa where lovell america
inc is progressively realising these assets
for cash repatriation to the uk this
process has led to more than 37 of the
us assets being in the form of cash at
the year end compared to 28 last year 
pensions
the gross deficit in the lovell pension
scheme which was closed to new
members in 2000 has remained largely
unchanged since last year at £36m as
discount rates have risen with interest
rate increases although the board 
has incorporated stronger mortality
assumptions which predict longer lives
for pension fund members together with
a higher level of forecast future inflation
during the year and in accordance with
the scheme specific funding requirements
of the pensions act 2005 the board
reached agreement with the trustees 
of the scheme on the level of future
contributions at £17m per annum
effective from 1 april 2007 previously the
contribution rate was £12m per annum
acquisition of seymour
the acquisition of seymour in late july
cost a net £59m in cash all payable on
acquisition following the acquisition an
independent valuation was carried out 
of seymour’s freehold land which resulted
in a fair value uplift of £03m reducing
goodwill on acquisition to £46m
seymour’s results for the two months
since the acquisition were not material to
the group’s overall performance
taxation
a deferred tax asset included in debtors
of £37m is carried in the balance sheet
which results from the likely future
utilisation of tax losses through the
improved and profitable trading of the
group during the year material
additional trading losses were identified
as usable within the next two years in one
of the engineering businesses and it is
these losses which are the main reason
for the increase in the deferred tax asset 
despite having material unused tax
losses the group anticipates an increase
in corporation tax payable in each of the
next few years although tax payable is
expected to remain below the headline
rate of tax due to losses brought forward
net assets
the consolidated net assets of the group
were £101m 2006 £53m an increase
of 91 the distributable profits of
renew holdings plc stood at £39m
2006 £05m providing the board with
the platform to propose an increase in 
the dividend for the full year by 50 from
12p to 18p per share
john samuel
group finance director
27 november 2007
90319renewholdingsra text  71207  1921  page 7 06
djob number90319renewholdings  ra    page 8
the company has also been involved in 
a number of major projects the high
active south outer haso cell project
involves the decommissioning and
removal of redundant plant from one of
the original magnox fuel reprocessing
facilities on completion over fifty tonnes
of various types of equipment will have
been decommissioned and removed from
the cell the magnox storage pond
emergency pumping system entails the
provision and installation of new plant
and equipment within a particularly
challenging radiological environment 
asset support activities are ongoing
within the thermal oxide reprocessing
plant thorp sellafield mixed oxide
plant smp and various high level
waste plants
shepley engineers was also awarded a
second consecutive rospa president’s
award for an outstanding performance in
health and safety at work over an eleven
year period
nuclear
specialist engineering within the nuclear
sector is delivered through shepley
engineers a major mechanical and
electrical contractor and project manager
activity in the year has been well
balanced between operational asset
support and the decommissioning and
demolition of redundant facilities by far
the largest spend within the national civil
nuclear legacy programme is at sellafield
in cumbria where shepley engineers has
worked continuously for more than 25
years shepley engineers is the largest
mechanical and electrical contractor at
sellafield with a workforce in excess of
400 people
during the year shepley engineers was
awarded four longterm framework
agreements at sellafield these include 
a multi disciplined site wide agreement
worth in excess of £25m over the next
two years and with an option for a two
year extension a decommissioning
framework agreement in consortium a
demolition framework agreement and a
fabrication and spares agreement
specialist 
engineering
review of 
operations
© british nuclear group ltd 
90319renewholdingsra text  71207  1921  page 8 during the year we grew specialist engineering
activities organically by over 20 our goal is
within the next three years for the group’s
specialist engineering activities to increase to 
at least a third of the group turnover
07
annual report  accounts 2007
djob number90319renewholdings  ra    page 9
the remediation of the former clough
road gas works in hull is also nearing
completion the £7m works involves
the excavation of over 110000m
3
of
material of which 55000m
3
will be
treated by bioremediation 
two other major contracts comprise the
remediation of former coalfired power
stations at rugeley in staffordshire and
stella south near gateshead both
entailed substantial land reclamation to
create clean development platforms for
future housing development
the company’s expertise was recognised
with awards from a number of bodies
these include the ‘specialists in
construction’ award from construction
news runner up in brownfield briefing’s
remediation innovation awards finalist
in the chartered institute of waste
management environmental excellence
awards 07 and the rospa gold medal in
may 07 in recognition of five consecutive
years gold awards
land remediation
vhe is a leading provider of land
remediation services with a varied public
sector and private sector client base 
the company has extensive experience 
in reclaiming brownfield land utilising 
inhouse designed and developed
solutions these apply innovative and
sustainable services such as specialist
biophysical treatment soil washing
stabilisation and groundwater treatment
to maximise the value of redundant land 
during the year vhe was reappointed 
as a term contractor by national grid
property ltd to continue remediation
works on its sites across the uk the
work primarily involves the cleanup of
former gas manufacturing sites with the
aim of returning the land to beneficial
use the appointment for the east and
north east of england is for a threeyear
term with the option to extend for a
further two years vhe was first
appointed to the term contract in 1996  
review of 
operations
90319renewholdingsra text  71207  1921  page 9 seymour
acquired by renew in july 2007 
seymour delivers specialist 
environmental services including 
water infrastructure development 
and maintenance
08
djob number90319renewholdings  ra    page 10
the company has undertaken a range of
major works for northumbrian water in
the last 12 months one of the largest is
a £35m flood alleviation scheme which
involved installing a 6000m
3
storage 
tank to store excess waterflows at
shiremoor in north tyneside a further
flood alleviation scheme worth £15m
was completed over two phases in
hartlepool along with a similar 
£650000 project in a residential area 
at kilton beck
recent contracts include a major coastal
protection scheme completed over two
phases at seaton carew the £6m
contract involved the removal of existing
sea wall construction of 1000m of new
reinforced concrete wall protection with
rock armour weighing up to 25 tons
concrete steps and ramps and
promenade works the company has 
just completed a £1m contract to install 
a new raw water main at teesside 
power station without affecting the
operation of the station
water
in july 2007 renew expanded its
specialist engineering capability with the
acquisition of seymour civil engineering
contractors limited which provides
specialist engineering services in the
water sector 
seymour is a leading civil engineering
business in the north east of england 
it delivers specialist environmental
services including water infrastructure
development and maintenance flood
alleviation and coastal protection as well
as urban renewal and other infrastructure
services to customers in both the public
and private sectors 
three quarters of seymour’s work is
generated from longer term framework
agreements and negotiated contracts
these include a £10m per annum
framework agreement with northumbrian
water with whom seymour has worked
for over 20 years this framework has
been extended since acquisition by
another two years until 2011
review of 
operations
90319renewholdingsra text  71207  1921  page 10 a further project completed during the
year was a £5m scheme in deptford to
construct 37 new homes for london 
quadrant housing trust as part of the
regeneration of the pepys estate in
lewisham a major scheme in progress 
is the £86m clyde terrace contract 
in forest hill to construct a mixed
development of residential livework 
and commercial units which is due for
completion in 2008 
significant new contracts included 
the £15m construction of 106 new
apartments and retail space in hackney
for metropolitan housing trust and a
further contract award for the community
housing trust to build on a former petrol
site at ponders end enfield  
the recently completed £165m gray’s
inn road project for community 
housing group featured in the exhibition
of excellence at the 2007 housing 
design awards
social housing
new build social housing is a key sector
especially within the south east where
allenbuild has six frameworks with major
housing associations pipeline projects
with logic homes exceed £60m 
current contracts for logic homes
include the £28m scheme to create 30
units at st mark’s field rochford and a
£22m contract at st francis of assisi in
hainault essex to construct 12 flats and
a new church hall work also continued
for the same client on the £9m scheme 
to construct 60 units at cranes farm
road in basildon
the company is actively incorporating
modern methods of construction into 
its social housing workload and is
committed to achieving zero defects on
all projects zero defects was achieved
on two schemes for logic homes the
£5m construction of 40 flats at tushmore
roundabout in crawley and a timber
framed project at pegler way 
09 specialist 
building
annual report  accounts 2007
djob number90319renewholdings  ra    page 11
review of 
operations
90319renewholdingsra text  71207  1921  page 11 10
djob number90319renewholdings  ra    page 12
three new retail units in hereford were
completed for the bbc pension trust
together with the refurbishment of an
existing retail unit in the horsefair 
bristol for the bristol alliance partnership
a developer’s shell for next retail 
was built in quedgeley district centre 
for robert hitchins properties and a
50000 sq ft diy retail shell constructed
in folkestone for madford developments
on the leisure side of retail work was
recently completed on a new five 
screen multiplex cinema in didcot and 
a fit out contract for a twelve screen
facility commenced at high wycombe
both for cineworld
allenbuild completed the £6m north 
walk development at the crystal peaks
shopping centre in sheffield for hermes
and secured repeat business with
dransfield properties for the £56m
jasper square development in tunstall
retail
britannia construction’s expertise in the
retail sector helped secure a number 
of new clients and developments
including appointment as a framework
contractor to marks  spencer in
addition to this framework britannia
construction is due to begin its first
project for this client at barton square in
manchester by the end of 2007
the £66m redevelopment of fareham
town shopping centre for dominion
corporate trustees was started in the
summer comprising the demolition of 
an existing multistorey car park and
adjacent retail units to form a new 
32000 sq ft extension to the existing
shopping mall and a new 209 space
multistorey car park 
tesco continues to feature significantly in
britannia construction’s portfolio of retail
clients with a major extension to the
cheltenham store completed in the year
and new stores at ilminster and maesteg
completing in the autumn
review of 
operations
90319renewholdingsra text  71207  1922  page 12 11
annual report  accounts 2007
djob number90319renewholdings  ra    page 13
residential properties in belgravia and
mayfair prestigious high quality
refurbishment and restoration projects are
underway in regents park and belgrave
square both projects involved substantial
structural alteration and installation of
swimming pools the properties will be
amongst some of the finest residences in
london when completed
yjl infrastructure continues to operate 
in the rail sector providing construction
services to rail operators and asset
providers throughout london and the
south east much of the company’s work
is undertaken in close proximity to the
travelling public working overnight or
within very tight timescales
projects completed include underground
station upgrade projects at hampstead
and belsize park on the northern line
and bounds green on the piccadilly line
a new depot facility was also completed
for gner in north london a step 
free access project at morden and a
challenging engineering scheme to “cool
the tube” at victoria underground station
restoration and refurbishment
restoration and refurbishment often
involving historic or listed properties 
and extensive structural alterations is 
a key skill among a number of group
companies walter lilly continued to
deliver a number of exclusive private
residential schemes in london such as
the fitting out of the former chelsea
school of art into a number of exclusive
apartments with fine quality finishes
including marble solid wood floors
bespoke joinery and underfloor heating
around the corner in chelsea square
walter lilly is carrying out the fitting out
of a fivestorey villa for a private client
having also constructed the shell and
core this luxury property will include
seven bedrooms an elevating stainless
steel swimming pool and glass lift
several projects have been undertaken
for longstanding client the cadogan
estate including the refurbishment of a
fivestorey office building in king’s road
into retail units on the ground and
basement floors with luxury apartments
on the three upper floors a further
contract involving structural alterations 
on the sloane square tavern has also
been undertaken currently walter lilly is
working on an £8m project in cadogan
gardens which includes extensive
structural alterations and a retained
façade to convert the property into 
retail units offices and a private house
one of walter lilly’s four framework
agreements is with grosvenor which
involves the refurbishment of several
preconstruction works are ongoing for
four station upgrade projects that are all
likely to be delivered during the course 
of next year including a £10m scheme 
at earls court
allenbuild commenced work on the
£58m contract for the major
refurbishment of the youth courts within
the queen elizabeth ii court facility in
liverpool for her majesty’s courts
services the project requires the
majority of the work to be undertaken
“out of hours” to prevent any disruption
to the daily operation of the building
yjl london continues to develop a
specialism in structural refurbishment
works with the majority of its work 
being centred around the west end 
and city fringes
projects include the conversion of 
offices into high quality residential
apartments in barter street holborn for
holborn links property developers
which in turn has led to a negotiated
project for the same client in high
holborn consisting of the conversion of 
review of 
operations
90319renewholdingsra text  71207  1922  page 13 an existing commercial property into six
‘affordable homes’ apartments
the £8m refurbishment of walmsley
house into 170 student units for
investream was completed having 
been secured following the successful
completion of 70 units at goswell road
for the same client
yjl london has a long track record in
hospital refurbishment and won two
contracts for the guy’s and st thomas’s
hospital trust the formation of a new
urology suite and the formation of the
assisted conception unit and stem 
cell research facility on the 11th floor 
of guy’s tower 
her majesty the queen and hrh the
duke of edinburgh opened the new
morrison wing of the caledonian club
walter lilly constructed a fourstorey
extension and basement to complement
the original building that provides additional
function rooms snooker and music
rooms and bedroom accommodation 
also in london allenbuild is working on
the £26m contract to construct the new
sackler centre for arts education at the
victoria and albert museum va in
south kensington the project in the
henry cole wing of the grade i listed
building entails the construction of an
auditorium artdesign and digital studios
and seminar rooms over two floors
a notable restoration scheme undertaken
by the group was the £13m restoration 
of the historic iron fabric at st pancras
the work involved the faithful repair and
replication of numerous corroded and
world war ii bomb damaged elements 
of the famous barlow shed as well as 
in the chambers and undercroft within
very strict conservation constraints 
the stunning refurbished iron and glass
roof at st pancras provides a landmark
demonstration of the group’s highly
specialist capability in this type of work
science and education
walter lilly enjoyed a successful year in
science and education with projects for
university college london and the
burlington danes laboratory fit out as part
of the imperial college framework the
company also secured the £205m queen
mary innovation centre project part of
queen mary university london which will
provide accommodation for the university
as well as incubator space aimed at
encouraging business innovation
work continued for longstanding 
client glaxosmithkline’s research and
development arm with two laboratory
refurbishments a further negotiated
award is a £25m warehouse upgrade 
at harlow where walter lilly has 
received commendations for outstanding
project delivery
hrh the princess royal opened the
james black centre for kings college
london which focuses on research into
stem cell cardiology neuroscience and
sickle cell disease
allenbuild commenced the construction
of the £17m rossington all saints
secondary school and sports village for
the diocese of sheffield the new school
will provide almost 10000m
2
of modern
teaching and sports facilities and will be
constructed within the grounds of the
existing school the contract also includes
a modern ‘sports village’ to strengthen
further the school’s ‘sports college’ status
one of the most innovative schemes
being undertaken by allenbuild is the
british library’s additional storage
programme building at thorp arch near
wetherby the world’s first large scale
automated document retrieval complex to
use oxygen depletion as a fire resistance
strategy the £13m scheme will provide
additional storage capacity for 7 million
items for the uk national collection and
provide over 262 linear kilometres of
highdensity storage
a number of smaller educational projects
are underway including the kenton
learning centre in harrow and the
construction of a new arts centre at mid
cheshire college in northwich
review of 
operations
12
djob number90319renewholdings  ra    page 14
90319renewholdingsra text  71207  1922  page 14 corporate
social
responsibility
renew holdings plc and its subsidiaries
endeavour to minimise the impact and to
maximise the social economic and
environmental benefits of their operations
beyond compliance with minimum 
legal requirements more information 
on the group’s policies can be found 
in the directors’ report the activities
undertaken vary across the group due 
to its organisational structure and the
diversity of the specialist nature of each
business a selection of current initiatives
undertaken by our operating companies
is outlined below
safety
as well as protecting its employees
through progressive improvements in
safety training and procedures renew
businesses work in very close proximity
to the public when working in schools or
near to children allenbuild seymour and
other group businesses host special
presentations geared to the relevant age
group illustrating the potential dangers
involved on a building site shepley
engineers is also supporting the zero
initiative at sellafield 
environment
vhe is committed to recycling sitewon
materials during land remediation which
diverts material from landfill and creates
reusable aggregates group companies
are also helping to pioneer a number of
initiatives such as cluster this enables
material from sites which are too small to
be economically remediated individually
to be treated collectively at a temporary
central hub britannia construction
donates surplus materials to suitable
local organisations on project completion 
sustainability
all renew businesses are committed to
increasing the procurement of sustainable
products and reducing construction
waste sustainable projects being
constructed include the environmental
technology energy centre for yorkshire
forward which features a 300kw wind
turbine while a sedum roof and biomass
boiler form part of the alltwen community
hospital in social housing modern
methods of construction such as timber
frames lightweight steel bathroom pods
and other prefabricated elements are
being utilised to improve energy efficiency
and reduce site waste while also improving
quality and reducing the building
programme other initiatives to minimise
waste include segregating materials on
site where space allows group offices
also separate waste such as paper
cardboard and aluminium for recycling 
considerate constructors
all group companies are active participants
in the considerate constructors scheme
and all sites are registered the scores
form a part of the key performance
indicators for each business
employment and training
providing employment opportunities to
local people is important for a number 
of businesses especially those involved
in social housing or community
regeneration allenbuild supports the
“employers racing ahead” initiative in
bradford that helps place the socially
deprived and people from ethnic
minorities in the construction industry
shepley engineers recruits around a
dozen apprentices every year and actively
contributes to regional development 
and regeneration bodies throughout 
west cumbria all group companies
support the operation and aspirations of
the construction skills certification
scheme to raise quality standards
throughout the construction industry
energy saving and 
carbon footprint
walter lilly is incorporating a number 
of energy saving technologies on its
projects such as electronic lighting
control systems heat recovery on
mechanical ventilation and ground 
source heating 75 of staff at yjli use
public transport for home to work travel 
group companies are also implementing
numerous ways to reduce the carbon
footprint of each office
charitable giving
staff across the group give financial and
practical support to a wide range of local
and national charities as well as other
good causes some group businesses
pledge to match any funds raised by staff
for charitable events 
renew holdings plc and its subsidiaries endeavour to
minimise the impact and to maximise the social economic
and environmental benefits of their operations beyond
compliance with minimum legal requirements
13
annual report  accounts 2007
djob number90319renewholdings  ra    page 15
90319renewholdingsra text  71207  1922  page 15 06
30
22
26
18
14
10
2010 2007 2006 
14 
25 
1 
actual 
target 
64
 
65
66
67
68
69
70
71
72
73
74 
2006 2007 
actual 69 
actual 72 
target 66 target 66 
percentage of orders from repeat clients
 
62 
64 
66
68 
70 
72 
74 
76 
78
80 
82 
2006 2007 
actual 78 
actual 79 
target 66 target 66 
percentage of orders in specialist sectors
 
07 
10 
13
16 
19 
22 
25 
28 
31 
34 
37 
43 
40
actual 19 
actual 41 
target 10 target 10 
2006 2007 
improvement in accident incidence rate
the directors present their report and the audited
accounts for the year ended 30 september 2007
principal activities
for the year ended 30 september 2007 the principal
activity of the group was in construction and construction
related activities the main construction activities are
carried out in the united kingdom with some
development activities in the usa more details of these
activities the year’s trading and future developments are
contained in the chairman’s statement the chief
executive’s review the review of operations and the
financial review a list of the principal operating
subsidiaries and joint ventures of the group as at 30
september 2007 appears in note 27 to the accounts
results and dividends
the group profit for the year was £7098000 2006
£5988000 the directors recommend the payment of a
final dividend on ordinary shares of 12p 2006 08p
giving a total for the year of 18p 2006 12p
acquisitions and disposals
acquisitions made by the group in the year are detailed
in the chief executive’s review there were no disposals
of businesses in the year
key performance indicators
the directors have established a number of key
performance indicators which they use to measure and
monitor the performance of the group in a number of
different areas these measures are set out in the tables
below the target given for profit before interest as a
percentage of sales is a mediumterm target which the
directors are aiming to achieve within three years the
order targets have been established as part of the
board’s drive to improve the quality and sustainability of
the group’s workload and to support the reliability of
financial performance the safety record improvement
target is set annually and achievement of this target is an
essential component of the bonus scheme for each
director and senior manager within the group 
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
14
directors’ 
report
djob number90319renewholdings  ra    page 16
profit before interest as a percentage of sales
90319renewholdingsra text  71207  1922  page 16 15
directors’ 
report
annual report  accounts 2007
a risk inherent in the construction industry occurs in the
nature timing and contractual conditions which exist at
the time of contract procurement to mitigate these risks
the group has a system of precontract and pretender
risk assessment whereby senior management including
the executive directors where appropriate review and
advise on specific issues arising in the contract
procurement process the group also seeks to limit its
risks by specialising in certain markets where it has
extensive experience and a particular skills base
derivatives and other financial instruments
the group’s principal financial instruments comprise
bank loans cash and shortterm deposits and obligations
under finance leases the main purpose of these financial
instruments is to provide finance for the group’s
operations the group has various other financial
instruments such as trade debtors and trade creditors
that arise directly from its operations the group also
uses foreign currency borrowings to hedge certain of the
currency risks arising from the group’s overseas
operations it is and has been throughout the period
under review the group’s policy that no trading in
financial instruments shall be undertaken the main risks
arising from the group’s financial instruments are interest
rate risk liquidity risk and foreign currency risk
cash flow interest rate risk
the group borrows in sterling at floating rates of interest
under the terms of overdraft and bond facilities with
barclays bank plc interest rates are linked to london
interbank offer rate libor and the bank’s base rates
hence enabling the group to track market interest rates
interest bearing assets comprise cash and bank deposits
and earn interest at floating rates
liquidity risk
the group’s policy is to ensure availability of operating
funds by maintaining an appropriate cash balance in both
current and deposit accounts and to establish
appropriate levels of borrowing facilities to provide 
shortterm flexibility
foreign currency risk
as a result of the investment in operations in the united
states movements in the us dollarsterling exchange
rate could materially affect the group’s balance sheet
the group seeks to limit the effect of this currency
exposure by using foreign currency borrowings to hedge
these investments against currency depreciation
the principal hedging instrument used by the group is a
us loan that was taken out on 8 november 2000 when
the us to £stg rate was 1446 the original hedge
amounted to us25m and this has been reduced to
us155m by the receipt of funds from the us in the
intervening period as at 30 september 2007
£11575000 2006 £12979000 of the group’s net
assets are denominated in foreign currency the group
does not use derivative financial instruments in its
management of foreign currency risk
credit risk
the group’s principal financial assets are bank balances
cash amounts recoverable on contracts and trade
debtors which represent the group’s maximum exposure
to credit risk in relation to financial assets
the group’s credit risk is primarily attributable to its
amounts recoverable on contracts and trade debtors
credit risk is managed by monitoring the aggregate
amount and duration of exposure to any one customer
depending upon their credit rating the amounts
presented in the balance sheet are net of allowances for
doubtful debts estimated by the group’s management
based on prior experience and their assessment of the
current economic environment
environment
the group’s policy with regard to the environment is to
ensure that we understand and effectively manage the
actual and potential environmental impact of our
activities our operations are conducted such that we
comply with all legal requirements relating to the
environment in all areas where we carry out our business
during the period covered by this report the group has
not incurred any fines or penalties or been investigated
for any breach of environmental regulations
payment of creditors
the group recognises the importance of good
relationships with its suppliers and subcontractors and
has established the following payment policy
a agree payment terms in advance of any commitment
being entered into
b ensure suppliers are made aware of these terms by
inclusion of the terms of payment on the order or
contract and
c ensure that payments are made in accordance with
the terms of the contract or order providing that the
presented documentation is complete and accurate
the group’s average creditor days during the year were
45 days 2006 44 days
donations
charitable donations made by the group during the year
amounted to £26948 2006 £19467 
the group made no political donations during the year
2006 £nil
djob number90319renewholdings  ra    page 17
90319renewholdingsra text  71207  1922  page 17 16
directors’
report
employees
the directors recognise the need for communication with
employees at every level all employees have access to a
copy of the annual report and accounts which together
with staff briefings internal noticeboard statements and
newsletters keeps them informed of the group’s
progress the directors are actively considering ways to
increase further the involvement of employees in the
group’s performance
the group continues to be committed to the health
safety and welfare of its employees and to observe the
terms of the health  safety at work act 1974 and all
other relevant regulatory and legislative requirements
it is the policy of the group that there shall be no
discrimination or less favourable treatment of employees
workers or job applicants in respect of race colour ethnic
or national origins religious beliefs sex sexual
orientation disability political beliefs age or marital
status full consideration will be given to suitable
applications for employment from disabled persons
where they have the necessary abilities and skills for that
position and wherever possible to retrain employees
who become disabled so that they can continue their
employment in another position renew and its
subsidiaries engage promote and train staff on the basis of
their capabilities qualifications and experience without
discrimination giving all employees an equal opportunity to
progress within the group
health  safety management
brian may continues as the designated board director of
health  safety with group responsibility for safety and
environmental management health safety and
environmental management issues and reports are
regularly reviewed at group board meetings with the
head of department in attendance when necessary
the executive management committee chaired by the
chief executive discusses and progresses policy
legislative changes best practice training needs
inspections audits internal and external performance
measurement and statistical information all topics are
discussed with a specific focus on improvement 
control at business level remains with subsidiary
managing directors who are required to appoint a director
who is responsible for safety and environmental matters
both safety and environmental issues are discussed as
the first agenda item at monthly board meetings each
business safety and environmental meeting encourages
open communication between all employees and is a key
part of the group’s efforts to gather and disseminate good
practice for inclusion in businessbased management
systems minimum safety and environmental standards
are contained within the new bespoke business safety
and environmental management systems that were
launched in 2007 this new system is based on group
activities and provides specific standards procedures
information forms and advice management advice is
provided by the group health safety and environmental
department consisting of the group health safety and
environmental director an administrator and our group
safety and environmental advisors
certain group companies employ their own specialist
advisors who liaise directly with the group hse director
on common issues the group maintains its membership
with the royal society for the prevention of accidents
rospa and locallybased construction safety groups all
safety and environmental department personnel hold
membership with the institution of occupational safety
and health iosh attendance on the five day citb site
safety management training scheme continues to be a
requirement for all construction management personnel
with a twoday refresher required every five years 
a oneday directors and senior managers course is
available internally and was used to introduce new
systems and detail changes to construction legislation
short duration ‘tool box talks’ and ‘safety briefings’ are
increasingly used to enhance the knowledge and
competence of supervisory management 
group policy requires each business to report and record
all injuries diseases and dangerous occurrences
regardless of severity an incident database is maintained
to collate this information and provide statistical data
allowing performance to be measured and to help
determine system amendment and future training
requirements a system of safety and environmental
alerts ensures lessons learnt and changes to working
practices are rapidly transmitted to our workforce
businesses and their contractors the accident incidence
rate air for the 12 month period to 30 september
2007 measured on the standard base line of 100000
persons at work is a key area where the group measures
its performance at the start of the financial year the
chief executive set a target of reducing air by 10 per
annum against this taxing target the group actually
achieved a 41 reduction
directors
the directors of the company who served throughout the 
year and brief biographical details are set out below 
arnold wagner obe resigned as a nonexecutive director
on 31 october 2006
djob number90319renewholdings  ra    page 18
90319renewholdingsra text  71207  1922  page 18 17
directors’
report
annual report  accounts 2007
nonexecutive directors
john bishop  director 62 appointed to the board as a 
nonexecutive director in october 2006 he is a
chartered accountant with over 20 years plc experience
at main board level before retiring in 2005 john spent 12
years at morgan sindall plc as development director and
latterly as finance director he is currently chairman of
clc group plc a leading uk building maintenance
business and primary medical property limited a
specialist property investment company
roy harrison  director 60 appointed to the board as a
nonexecutive director in november 2003 subsequently
appointed executive chairman in march 2004 reverting
to nonexecutive chairman with effect from 1 october
2005 he is a former chief executive of the tarmac
group and has a number of investing director positions
in private construction materials companies roy is a
nonexecutive director of bss group plc and governor
and chairman of a number of city academies
executive directors
brian may  director 56 appointed to the board as
chief executive in june 2005 he is a chartered civil
engineer who progressed his career in tarmac
subsequently holding a number of senior positions in
mowlem plc before becoming chief executive of laing
construction plc and more latterly hbg construction ltd
john samuel  director 51 joined the board in may
2006 as group finance director he was previously
group finance director at filtronic plc from 1991 until
2004 and subsequently chief financial officer of zetex
plc from july 2004 until february 2006 john qualified as
a chartered accountant in 1981 with deloitte haskins
and sells before serving as a partner with baker tilly from
1987 until 1991 
an organogram with the directors’ areas of responsibility
can be found on the company’s website
wwwrenewholdingscom
roy harrison will retire by rotation at the 2008 annual
general meeting “agm” and will offer himself for
reappointment the board recommends the
reappointment of mr harrison as it is considered that he
brings considerable management and related commercial
experience to the group’s business
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 20 no
director has any interest in any other group company
details of the directors’ remuneration and service
contracts appear on pages 19 and 20
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
share capital
as at the date of this report the total number of shares in
issue being ordinary shares of 10p each is 59898927
during the year the company has not bought back any
of its own shares nor issued any new share capital
disclosure of information to auditors
at the date of making this report each of the company’s
directors as set out on this page confirms the following
• so far as each director is aware there is no relevant
information needed by the group’s auditors in
connection with preparing their report of which the
group’s auditors are unaware and
• each director has taken all the steps that he ought to
have taken as a director in order to make himself
aware of any relevant information needed by the
group’s auditors in connection with preparing their
report and to establish that the group’s auditors are
aware of that information
auditors
on 31 july 2007 the company received the resignation
of rsm robson rhodes llp as auditors to the group
the company’s directors appointed kpmg audit plc on
31 july 2007 to fill the casual vacancy in the office of
auditors to the group a resolution will be proposed at
the forthcoming agm to reappoint kpmg audit plc as
auditors to the group and to authorise the directors to
determine their remuneration
approval
the board approved the report of the directors on 
27 november 2007
by order of the board
ben feather 
group solicitor and company secretary
27 november 2007
number of percentage of 
ordinary shares issued share 
capital
ruffer llp 4760700 795
johan claesson and 
connected parties 3930723 656
jp morgan asset 
management uk limited 3193375 533
octopus asset management 
nominees limited 3151560 526
g merrett 2323250 388
aviva plc and its subsidiaries 1846000 308
djob number90319renewholdings  ra    page 19
90319renewholdingsra text  71207  1922  page 19 18
directors’ 
remuneration 
report
the directors present the directors’ remuneration report
for the financial year ended 30 september 2007
as an aim listed company renew is not required 
to prepare the report in accordance with the 
directors’ remuneration report regulations 2002 
the “regulations” which introduced new requirements
in respect of financial periods ending on or after 
31 december 2002 however the directors recognise the
importance and support the principles of the regulations
and would normally seek to follow them to the extent
considered relevant for an aim listed company the
auditors are not required to report to the shareholders on
the directors’ remuneration report
remuneration committee
following the appointment of roy harrison as executive
chairman in march 2004 there was only one
independent nonexecutive director on the board and the
committee was rendered inquorate the board therefore
decided in july 2004 to temporarily suspend all
committees roy harrison’s previous role as an
executive director precludes him from being considered
as independent under the combined code the “code”
and so the board has decided to continue to review
remuneration matters as a full board any matters
normally reserved for consideration by the remuneration
committee are currently decided upon by the full board 
with any individual having a personal interest in the
matter under consideration not taking part in the meeting
the board held four meetings during the financial year to
discuss remuneration arrangements 
the remuneration committee’s normal terms of 
reference include
a to determine and agree with the board the framework
and policy for the remuneration packages including
bonuses incentive payments and share options or
share awards of the executive directors and
members of the executive management as it is
designated to consider
b to review and approve the design of all share
incentive plans and performance related pay
schemes for approval by the board and shareholders
as applicable
c to determine targets and awards made under share
incentive plans and performance related pay
schemes
d to determine the policy for and scope of pension
arrangements for each executive director and other 
senior executives
e to ensure contractual terms on termination and
payments made are fair to the individual and
company and that failure is not rewarded
nonexecutive directors do not have any personal
interest in the matters to be decided by the committee
other than as shareholders nor any potential conflicts of
interest arising from crossdirectorships and no dayto
day involvement in the running of the company the
executive directors and other senior personnel may be
invited to attend meetings when appropriate to provide
advice however no director is present or takes part in
discussions concerning their own remuneration
remuneration policy
the company’s remuneration policy is that the
remuneration package of the executive directors should
be sufficiently competitive to attract retain and motivate
directors to achieve the company’s objectives without
making excessive payments the remuneration and
employment terms of the executive directors are
determined by the committee by comparison with
salaries paid and terms agreed with directors in similar
companies in the same sector and of a similar size and
after a review of the performance of the individual
it is the aim of the committee to reward executive
directors competitively and on the broad principle that
they should be in the range of median to upperquartile
of remuneration paid to senior management of
comparable public companies for guidance the
committee refers to published survey data the 
board determines the terms and conditions of 
nonexecutive directors 
there are four main elements to the remuneration
packages of the executive directors and other senior
executives
• basic salary including benefits
• annual bonus awards
• share option plans and
• pension arrangements
basic salary
basic salaries are reviewed annually by the board in its
capacity as remuneration committee and increased
where the committee believes that adjustments are
appropriate to reflect performance increased
responsibilities andor market conditions
other benefits for executive directors include car
allowances and certain medical cover for the director and
immediate family the company also has a permanent
health insurance policy to provide cover for the 
executive directors
annual bonus awards
the company provides a bonus incentive scheme for
directors and senior executives of the operating
companies linked to the performance of the business for
djob number90319renewholdings  ra    page 20
90319renewholdingsra text  71207  1922  page 20 19
directors’ 
remuneration 
report
annual report  accounts 2007
which they are responsible all performance criteria are
subject to approval by the remuneration committee
before payment is made
share option plans
the renew 2004 executive share option scheme the
“2004 esos” was approved at an extraordinary general
meeting “egm” held on 11 march 2004 during the year
522292 options were granted under the 2004 esos to
the executive directors there are 761904 other options
outstanding under the scheme 
the renew savings related share option scheme 
the “renew saye” was also approved at the egm on
11 march 2004 there are no options outstanding under
this scheme the company’s policy to grant options 
or awards under the above schemes is at the 
remuneration committee’s discretion as and when
considered appropriate
pension arrangements
the group provides retirement benefits for executive
directors and employees through independent pension
schemes the assets of these schemes are held by trustees
and managed by independent investment managers
the retirement age of the executive directors is 65
messrs may and samuel are not members of these
schemes and receive salary in lieu of pension
contributions from the company
service contracts and letters of appointment
the company’s policy is for the executive directors to
have 12month rolling service contracts that provide for a
12month notice period the nonexecutive directors do
not have service contracts the nonexecutive directors
have letters of appointment concerning amongst other
things the initial terms for which they are appointed a
general statement of their role and duties and the fees
they will receive as a director the fees of nonexecutive
directors are determined by the full board within the
limits set out in the articles of association the non
executive directors are not eligible for bonuses pension
benefits share options or other benefits the letters of
appointment do not contain a provision for termination
payments the directors are indemnified to the full extent
permitted by statute under the articles of association
the service contracts and letters of appointment of the
directors who served during the year ended 
30 september 2007 include the following terms
directors executive letter of appointment date of contract unexpired terms notice period 
nonexecutive or contract or letter months months
j bishop nonexecutive letter 4 october 2006 24 1
r harrison nonexecutive letter 7 october 2005 12 1
b may executive contract 20 june 2005 rolling one year 12
j samuel executive contract 17 may 2006 rolling one year 12
directors’ remuneration
information is provided below for directors who served during the financial year and as at 30 september 2007
notes salaryfees bonuses benefits total total
emoluments emoluments
2007 2006
£000 £000 £000 £000 £000
executive directors
b may 1 2  3 286 138 22 446 435
j samuel 1 2  3 220 46 22 288 144
734 579
nonexecutive directors
r harrison 50   50 50
j bishop 27   27 
a wagner obe 4 2   2 25
79 75
notes
1 the highest paid director for 2007 and 2006 was b may who received emoluments of £446000 2006 £435000 
2 benefits include car allowances and certain medical cover for the director and immediate family
3 messrs may and samuel received salary payments in lieu of company pension contributions which are paid
through payroll and taxed as salary and are included in salary above
4 a wagner obe resigned on 31 october 2006
djob number90319renewholdings  ra    page 21
90319renewholdingsra text  71207  1922  page 21 20
directors’ 
remuneration 
report
directors’ share options
options have been granted to messrs may and samuel under the renew esos as set out in the table below no other
options lapsed were exercised or were awarded during the year the market price of the company’s shares at 30
september 2007 was 1145p and the range of market prices during the year was between 5975p and 12075p
information is provided below for directors who served during the financial year and as at 30 september 2007
2007 award 2006 award cumulative total
30 september 1 october
2007 2006
b may 331210 476190 807400 476190
j samuel 191082 285714 476796 285714
date of award 8 january 2007 7 june 2006
exercise price £ 0785 0525
earliest exercise date 9 january 2010 8 june 2009
expiry of exercise period 8 january 2017 7 june 2016
performance criteria for the vesting of the share options is set out in note 19 to the financial statements
directors’ share interests
those directors serving at the end of the year and their immediate families had interests in the share capital of the
company at 30 september 2007 as follows
ordinary shares of £010 each
30 september 2007 30 september 2006
j bishop 10000 
r harrison 60000 60000
b may 105000 105000
j samuel 130000 130000
directors’ pension information
no director had pension entitlements under the company’s defined benefit pension scheme
approval
the directors’ remuneration report was approved by the board on 27 november 2007 and signed on its behalf by
r harrison
chairman
27 november 2007
djob number90319renewholdings  ra    page 22
90319renewholdingsra text  71207  1922  page 22 21
corporate 
governance
annual report  accounts 2007
as an aim listed company renew is not required to
follow the provisions of the combined 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
because of this the directors would normally seek to
follow the code to the extent considered relevant for an
aim listed company but have been unable to achieve
compliance with the code in a number of areas this year
primarily because of the lack of independent non
executive directors these matters are explained 
in further detail in the sections below
the board of directors
the board currently comprises the chief executive the
nonexecutive chairman one executive director and one
independent nonexecutive director brief biographies of
the directors are given on page 17
as the company has only had one independent non
executive director within the meaning of the code during
the year it has not been compliant with the requirement
of the code that more than half of the board should be
comprised of independent nonexecutive directors 
the composition of the board is reviewed regularly 
the board in its capacity as nomination committee
considered external candidates leading to the
appointment of john bishop as a nonexecutive director
on 1 october 2006 appropriate training briefings and
induction are available to all directors on appointment
and subsequently as necessary taking into account
existing qualifications and experience new directors are
subject to election by shareholders at the first agm after
their appointment 
the board met formally 10 times in the year with all
directors in attendance plus committee meetings
dealing with the daily business of the company being
held as necessary the board receives written and oral
reports from the executive directors ensuring matters are
considered fully and enabling directors to discharge their
duties properly there is a formal schedule of matters
reserved for the board’s decision ensuring the
maintenance of control over strategic financial and 
operational matters 
in addition the directors have access to the advice and
services of the group solicitor and company secretary
and procedures are in place for them to seek independent
professional advice if necessary at the company’s expense
board committees
following the appointment of r harrison as executive
chairman on 24 march 2004 a wagner obe became the
sole independent nonexecutive director and the audit
remuneration and nomination committees were
rendered inquorate the board therefore decided in july
2004 to temporarily suspend all committees since the
committees were rendered inquorate any matters 
normally reserved for consideration by the committees
have been decided upon by the full board with any
individual having a personal interest in the matter under
consideration not taking part in the meeting as at 
1 october 2005 r harrison reverted to nonexecutive
chairman however his previous role as an executive
director prevents him from being considered as
independent under the code the board has decided
therefore to continue to consider the above committee
matters as a full board and will reinstate the committees
as soon as it is in a position to do so 
in normal circumstances the board delegates clearly
defined powers to its audit general purposes
remuneration and nomination committees each of the
board’s committees has carefully drafted terms of reference
the remuneration committee determines and agrees
with the board the framework and policy of executive
remuneration packages including bonuses incentive
payments share options or awards and pension
arrangements further information concerning the
remuneration committee is set out in the directors’
remuneration report on pages 18 to 20 
the nomination committee monitors the composition of
the board and recommends the appointment of new
directors the board in its capacity as nomination
committee with all directors present has held two
meetings during the year to discuss nomination matters
the nomination committee terms of reference include
a to review the structure size and composition of 
the board
b to consider succession planning for directors and 
senior executives
c to identify and nominate for approval by the board
suitable candidates to fill board vacancies 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 company ceased to comply with the code guidance
section c 31 that the audit committee should
comprise of at least two nonexecutive directors
following the appointment of r harrison as an executive
director the board in its capacity as audit committee
with all directors present has held five meetings to
consider audit committee business john bishop acts as
chairman of the board for the purposes of audit
committee business in normal circumstances the audit
committee considers the adequacy and effectiveness of
the risk management and control systems of the group
and reports the results to the board it reviews the scope
and results of the external audit its cost effectiveness
and the objectivity of the auditors the audit committee
monitors the nonaudit work performed by the auditors 
to help ensure that the independence of the auditors is
maintained the audit committee also reviews the 
djob number90319renewholdings  ra    page 23
90319renewholdingsra text  71207  1922  page 23 22
corporate 
governance
interim statement the preliminary announcement and
accounting policies 
the general purposes committee is constituted by two
executive directors and considers routine daytoday
business decisions which are then reported to the board
internal controls
throughout the financial year to 30 september 2007 and
up to the date of approval of the report and accounts the
group has fully complied with the relevant provisions of
the code and the turnbull guidance the directors
acknowledge that they have overall responsibility for the
group’s system of internal control and for reviewing and
monitoring its effectiveness the system of internal control
is designed to manage and mitigate rather than eliminate
the risks to which the company is exposed and therefore
provides a reasonable but not absolute assurance against
a company failing to meet its business objectives or
against material misstatement or loss consequently the
board confirms that there is an ongoing process for
identifying evaluating and managing significant risks faced
by the group and that it is regularly reviewed by the board 
the group operates a risk management process which
is embedded in normal management and governance
processes there is a system of selfexamination of risk
areas and controls by subsidiaries and departments
within the group where significant risks are identified
the probability of those risks occurring their potential
impact and the plans for managing and mitigating each
of those risks is reported the group operates a series of
controls which include the annual strategic planning and
budgeting process shortterm cash monitoring achieved
by means of weekly forecasts which are compared
against budget and previous forecasts clearly defined
capital investment guidelines and levels of authority a
clear organisational structure within which individuals’
responsibilities are identified and monitored these
results and processes are monitored updated reviewed
and considered by the board 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 an internal audit function is
necessary however it is continuing to review this position
going concern
after making enquiries the directors consider that at the
time of approving the financial statements there is a
reasonable expectation that the company and the group
have adequate resources to continue in operational 
existence for the foreseeable future for this reason they
continue to adopt the going concern basis in preparing
the financial statements
directors’ remuneration
the company’s policy on the remuneration of executive
directors and information relating to the directors’
remuneration and their interests in share options is
included in the directors’ remuneration report
directors and officers’ indemnity
the articles of association provides that each director or
other officer or auditor of the company shall be
indemnified by the company against losses costs and
expenses he may sustain or incur in connection with the
performance of his duties of office to the fullest extent
permitted by law
shareholder relationships
members of the board have dialogue with individual
shareholders during the year in addition to the annual
and interim report and accounts the chairman
addresses shareholders at the agm and invites questions
to any members of the board 
the agm is normally attended by all directors and
provides an opportunity for communication with those
shareholders attending notice of the agm is given to
shareholders at least 21 days in advance and separate
resolutions are proposed on each substantially separate
issue where resolutions at the agm are dealt with by
show of hands the results of proxy votes for and against
are still announced 
financial and other information about the company 
is available on the company’s website
wwwrenewholdingscom from which shareholders can
also access their shareholding details via a link to the
website of capita registrars plc
annual general meeting
the agm will be held on 30 january 2008 the notice for
which is set out on page 52 the notice contains special
business including the renewal of the board’s power to
allot equity shares brief details of the purpose and effect
of the proposed resolutions are set out on page 53 in the
notes to the notice of agm 
shareholders should complete the proxy form
accompanying this document in accordance with the
notes contained in the notice of agm
approval
the board approved the corporate governance report
on 27 november 2007
by order of the board
ben feather
group solicitor and company secretary
27 november 2007
djob number90319renewholdings  ra    page 24
90319renewholdingsra text  71207  1922  page 24 23
statement of
directors’
responsibilities
statement of directors’ responsibilities
the directors are responsible for preparing the annual
report and the financial statements in accordance with
applicable law and regulations 
company law requires the directors to prepare financial
statements for each financial year under that law they
have elected to prepare the group and company
financial statements in accordance with uk accounting
standards and applicable law uk generally accepted
accounting practice 
the company and group financial statements are
required by law to give a true and fair view of the state of
affairs of the company and the group and of the profit or
loss for that period 
in preparing these financial statements the directors are
required to 
• select suitable accounting policies and then apply 
them consistently 
• make judgments and estimates that are reasonable 
and prudent 
• state whether applicable uk accounting standards
have been followed subject to any material
departures disclosed and explained in the 
financial statements
• 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 proper
accounting records that 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 1985 
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
wwwrenewholdingscom legislation in the uk
governing the preparation and dissemination of 
financial statements may differ from legislation in 
other jurisdictions 
annual report  accounts 2007
djob number90319renewholdings  ra    page 25
90319renewholdingsra text  71207  1922  page 25 24
independent 
auditors’ 
report 
independent auditors’ report to the members of 
renew holdings plc 
we have audited the group and parent company
financial statements the “financial statements” of renew
holdings plc for the year ended 30 september 2007
which comprise the group profit and loss account the
group and company balance sheets the group cash
flow statement the group statement of total
recognised gains and losses and the related notes
these financial statements have been prepared under the
accounting policies set out therein 
this report is made solely to the company’s members as
a body in accordance with section 235 of the companies
act 1985 our audit work has been undertaken so that
we might state to the company’s 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 auditors 
the directors’ responsibilities for preparing the annual
report and the financial statements in accordance with
applicable law and uk accounting standards uk
generally accepted accounting practice are set out in
the statement of directors’ responsibilities on page 23 
our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory
requirements and international standards on auditing 
uk and ireland 
we report to you our opinion as to whether the financial
statements give a true and fair view and are properly
prepared in accordance with the companies act 1985
we also report to you whether in our opinion the
information given in the directors’ report is consistent
with the financial statements the information given in the
directors’ report includes that specific information
presented in the chairman’s statement the chief
executive’s review and the financial review that is cross
referred from the principal activities section of the 
directors’ report
in addition we report to you if in our opinion the
company has not kept proper accounting records if we
have not received all the information and explanations we
require for our audit or if information specified by law
regarding directors’ remuneration and other transactions
is not disclosed 
we read the other information contained in the annual
report and consider whether it is consistent with the
audited financial statements we consider the
implications for our report if we become aware of any
apparent misstatements or material inconsistencies with
the financial statements our responsibilities do not
extend to any other information
basis of audit opinion
we conducted our audit in accordance with international
standards on auditing uk and ireland issued by the
auditing practices board an audit includes examination
on a test basis of evidence relevant to the amounts and
disclosures in the financial statements it also includes an
assessment of the significant estimates and judgments
made by the directors in the preparation of the financial
statements and of whether the accounting policies are
appropriate to the group’s and company’s circumstances
consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence
to give reasonable assurance that the financial
statements are free from material misstatement whether
caused by fraud or other irregularity or error in forming
our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements
opinion
in our opinion
• the financial statements give a true and fair view in
accordance with uk generally accepted accounting
practice of the state of the group’s and the parent
company’s affairs as at 30 september 2007 and of
the group’s profit for the year then ended 
• the financial statements have been properly prepared
in accordance with the companies act 1985 and 
• the information given in the directors’ report is
consistent with the financial statements
kpmg audit plc
chartered accountants and registered auditors
1 the embankment
neville street
leeds
ls1 4dw 
27 november 2007
djob number90319renewholdings  ra    page 26
90319renewholdingsra text  71207  1922  page 26 25
group profit  loss account
for the year ended 30 september 2007
turnover group  share of joint ventures 349129 365266
less share of joint ventures’ turnover 980 2823
continuing operations 347770 341698
discontinued operations 379 20745
group turnover 2 348149 362443
cost of sales 2 311486 328393
gross profit 36663 34050
administrative expenses 2 31646 30577
profit on ordinary activities before interest 2 5017 3473
interest receivable 2199 1561
interest payable 4 768 1437
other finance income – frs 17 pension 4 745 1042
profit on ordinary activities before taxation 7193 4639
taxation chargecredit on ordinary activities 6 95 1349
profit for the financial year 7098 5988
basic earnings per ordinary share 8 1185p 1000p
diluted earnings per ordinary share 8 1163p 995p
note total total
2007 2006
£000 £000
profit for the financial year 7098 5988
exchange movement in reserves 150 119
movements in defined benefit pension scheme 25 1804 6175
movement on deferred tax relating to the defined benefit pension scheme 427 1186
total recognised gains and losses for the year 5571 880
note total total
2007 2006
£000 £000
group statement of total recognised gains  losses
for the year ended 30 september 2007
annual report  accounts 2007
djob number90319renewholdings  ra    page 27
90319renewholdingsra text  71207  1922  page 27 26
djob number90319renewholdings  ra    page 28
balance sheets
at 30 september 2007
fixed assets
intangible assets goodwill 9 8741 4527  
tangible assets 10 5188 3819 196 209
investments 11   90493 83672
investments in joint ventures 12
loans to joint ventures 751 561  
share of gross assets 3623 4429  
share of gross liabilities 1321 1722  
3053 3268  
16982 11614 90689 83881
current assets
stocks and work in progress 13 6391 18673  
debtors due after more than one year 14 3902 4346  
debtors due within one year 14 85118 77093 26233 23987
cash at bank and in hand 15 24565 19735 9893 13951
119976 119847 36126 37938
creditors amounts falling due in less than one year 16 122352 121555 106990 105473
net current liabilities 2376 1708 70864 67535
total assets less current liabilities 14606 9906 19825 16346
creditors amounts falling due after more than one year 17 1899 1821  
net assets excluding pension liability 12707 8085 19825 16346
pension liability 25 2562 2769  
net assets 10145 5316 19825 16346
capital and reserves
share capital 19 5990 5990 5990 5990
share premium account 20 5893 5893 5893 5893
capital redemption reserve 20 3896 3896 3896 3896
revaluation reserve 20 73 73 73 73
share based payments reserve 20 97  97 
profit and loss account 20 5804 10536 3876 494
equity shareholders’ funds 21 10145 5316 19825 16346
approved by the board and signed on its behalf by
r harrison
chairman
27 november 2007
note group group company company
2007 2006 2007 2006
£000 £000 £000 £000
90319renewholdingsra text  71207  1922  page 28 27
group cash flow statement
for the year ended 30 september 2007
net cash inflow from operating activities 26 21878 10661
returns on investments and servicing of finance
interest received 2199 1561
interest paid 768 1437
1431 124
taxation
net corporation tax paid 107 36
capital expenditure and financial investment
payments to acquire tangible fixed assets 1060 1291
proceeds on sale of tangible fixed assets 308 393
loans advanced to joint ventures 231 149
983 1047
acquisitions and disposals
acquisition of a subsidiary 6821 664
cash obtained on acquisition of subsidiaries and businesses 889 65
5932 599
equity dividends paid to shareholders 839 360
cash inflow before financing 15448 8743
financing
movement in shortterm borrowings  3600
repayment of mortgage  8363
repayment ofadditional development loans 9795 9795
finance lease payments 543 686
10338 2854
increase in cash during the year 5110 5889
reconciliation of net cash flow to movement in net funds
increase in cash during the year 5110 5889
movement in borrowings 10053 2556
changes in net funds arising from cash flows 15163 8445
other noncash movements 280 256
movement in net funds during the year 14883 8701
opening net funds 8970 269
closing net funds 23853 8970
note total total
2007 2006
£000 £000
annual report  accounts 2007
djob number90319renewholdings  ra    page 29
90319renewholdingsra text  71207  1922  page 29 28
djob number90319renewholdings  ra    page 30
notes to the accounts
i basis of accounting
the accounts have been prepared on the going concern
basis and in accordance with applicable accounting
standards under the historical cost convention modified
by the revaluation of certain long leasehold land 
and buildings
a summary of the more important group accounting
policies which have been applied consistently is set 
out below
ii basis of consolidation
the group accounts consolidate the accounts of the
company and its subsidiary undertakings and include the
attributable share of the results and net assets of joint
ventures the results and net assets of undertakings
acquired are included in the group profit and loss
account and balance sheet using the acquisition method
of accounting from the effective date of acquisition the
results of undertakings disposed of are included to the
effective date of disposal subsidiary undertakings have
been consolidated using the acquisition method of
accounting and joint ventures are included in accordance
with the accounting policies noted below
iii joint ventures
in the normal course of business the group invests in
joint ventures which are classified as fixed asset
investments in the individual accounts of the company
joint ventures arise where the group has a participating
interest in an entity and shares the control of its strategic
and operating policies joint ventures are accounted for
using the gross equity method of accounting where
necessary adjustments are made on consolidation to
bring the results and net assets of joint ventures into line
with group accounting policies
iv investments in subsidiaries
investments in subsidiaries are recorded at cost less
provision for impairment
v goodwill
goodwill is the difference between the amount paid on
the acquisition of a business and the aggregate fair value
of its separable net assets goodwill arising on
acquisitions prior to 30 september 1997 has been written
off directly against the profit and loss reserve and has not
been reinstated on implementation of frs 10 “goodwill
and intangible assets” as allowed by the standard
goodwill arising on acquisition of subsidiaries after 
1 october 1997 is capitalised in the balance sheet and is
being amortised over its estimated useful economic life
up to a maximum of 20 years
reviews for impairment of goodwill are performed at the
end of the first full financial year following the related
acquisition and thereafter if events indicate that the
carrying value may not be recoverable on the sale of a
subsidiary undertaking any goodwill relating to the
disposed subsidiary is written off in the year
vi longterm contracts
longterm contracts are stated at cost plus attributable
profit after providing for anticipated future losses and
contingencies progress payments received are deducted
from these amounts cost includes attributable
overheads longterm contract work in progress is
recorded in turnover on a monthly basis as the contract
proceeds and therefore is included in debtors as
amounts recoverable on contracts no profit is
recognised until the outcome of the contract can be
foreseen with reasonable certainty
vii stocks and work in progress
stocks and work in progress comprise developments
and land held for development and raw materials and are
stated at the lower of cost and net realisable value cost
includes appropriate attributable overheads and excludes
interest where necessary provision is made for obsolete
slow moving and defective stocks
viii 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
• group occupied property
freehold land  no depreciation charge
long leasehold land  shorter of fifty years and
and buildings and remainder of lease
• plant and vehicles  three to ten years
• office equipment  two to seven years
changes in the revalued amounts of assets carried at
valuations are taken directly to the revaluation reserve
upon disposal the balance of any revaluation reserve
relating to the property sold is transferred to the profit 
and loss account in reserves
1 accounting policies
90319renewholdingsra text  71207  1922  page 30 29
notes to the accounts
1 accounting policies continued
ix 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
d extra tax payable if the overseas retained profits of
subsidiaries joint ventures or associates are remitted
in the future
deferred tax assets are recognised for taxable losses
relating to trading to the extent that those losses are
expected to be recoverable within the foreseeable future
and also in respect of the pensions deficit recorded
under frs 17 where the directors consider that the asset
will be utilised by the expected profitability of the group
x turnover
turnover which excludes sales within the group and 
value added tax comprises
• value of work executed during the year on 
construction contracts
• sales of properties and land which are recorded upon 
legal completion
xi foreign currencies
transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction or at the contracted
rate if the transaction is covered by a forward exchange
contract monetary assets and liabilities denominated 
in foreign currencies are retranslated at the rate of
exchange ruling at the balance sheet date or if
appropriate at the forward contract rate the accounts of
overseas subsidiary and joint venture undertakings are
translated at the rate of exchange ruling at the balance
sheet date the exchange difference arising on the
retranslation of the opening net assets is taken directly to
reserves together with differences on foreign currency
borrowings to the extent that they are used to finance or
provide a hedge against group equity investments in
foreign enterprises all other exchange differences are
taken to the profit and loss account
xii leasing commitments
assets held under finance leases where substantially all
the benefits and risks of ownership of an asset have
been transferred to the group are capitalised and are
depreciated in accordance with the depreciation policy
for the relevant class of asset or the remaining lease term
if shorter the interest element of the rental obligation is
charged to the profit and loss account and represents a
constant proportion of the balance of capital repayments
outstanding rentals under operating leases are charged
to the profit and loss account on a straightline basis
over the term of the lease
xiii defined benefit pension scheme
the group has adopted the requirements of frs 17
“retirement benefits” the pension scheme assets are
measured using market values pension scheme liabilities
are measured using the projected unit actuarial method
and are discounted at the current rate of return on a high
quality corporate bond of equivalent term and currency
to the liability any increase in the present value of
liabilities within the group’s defined benefit scheme
expected to arise from employee service in the period is
charged to operating profit the expected return on the
scheme’s assets and the increase during the period in
the present value of the scheme’s liabilities arising 
from the passage of time are included in other finance
income actuarial gains and losses are recognised in 
the consolidated statement of total recognised gains 
and losses
pension scheme surpluses to the extent they are
considered recoverable under the guidance of frs 17
or deficits are recognised in full and presented on the
face of the balance sheet net of related deferred tax
further information on the structure of the defined benefit
scheme is contained within note 25 of these accounts
xiv defined contribution pension scheme
contributions to the defined contribution scheme are
charged to the profit and loss account as incurred
xv share based payments
frs 20 share based payments requires a fair value to be
established for any equity settled share based payments
fair value has been independently measured using a
black scholes valuation model the fair value determined
at the grant date of the equity settled share based
payments is expensed on a straightline basis over the
vesting period based on the group’s estimate of shares
that will eventually vest
annual report  accounts 2007
djob number90319renewholdings  ra    page 31
90319renewholdingsra text  71207  1922  page 31 30
djob number90319renewholdings  ra    page 32
2 segmental analysis
turnover is analysed as follows
building 265289 271888
engineering 68777 54553
inter divisional turnover 3265 8999
property and central activities 17949 27079
discontinued operations 379 20745
group and share of joint ventures’ turnover 349129 365266
less share of joint ventures’ turnover 980 2823
group turnover 348149 362443
analysed as to
continuing operations 347770 341698
discontinued operations 379 20745
group turnover 348149 362443
analysis of cost of sales
continuing operations 311107 308017
discontinued operations 379 20376
group cost of sales 311486 328393
analysis of administrative expenses
continuing operations 31646 30208
discontinued operations  369
group adminstrative expenses 31646 30577
analysis of profit on ordinary activities before interest
building 3700 2603
engineering 3374 2810
property and central activities 2057 1940
discontinued operations  
profit on ordinary activities before interest 5017 3473
net financing income 2176 1166
profit on ordinary activities before taxation 7193 4639
discontinued operations relates to the activities of yjl construction excluding yjl infrastructure
the directors have not disclosed segmental information relating to the net assets since they are of the opinion that to
fully comply with the requirements of ssap 25 “segmental reporting” would be seriously prejudicial to the interests
of the group
as permitted by section 230 of the companies act 1985 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 £4221000
2006 loss £822000
2007 2006
£000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 32 31
3 profit on ordinary activities before interest
profit on ordinary activities before interest is arrived at after chargingcrediting
auditors’ remuneration – audit services company £56000 2006 £74000 150 193
depreciation of owned assets 1047 1113
depreciation of assets held under finance leases 279 410
amortisation of goodwill 356 306
operating lease rentals – plant and machinery 34 33
operating lease rentals – motor vehicles 358 306
operating lease rentals – other 3055 3400
rental income 1348 2158
profit on sale of fixed assets 85 
profit on sale of current asset investments  544
foreign exchange losses 192 163
during the period the following services were provided by the group auditor
fees payable to the company’s auditor for the audit of the financial statements 56 74
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 94 119
other services related to taxation  64
other services related to employment matters 37 
187 257
2007 2006
£000 £000
4 interest payable and other finance income
interest payable
on bank loans and overdrafts 739 1375
other interest payable 29 62
768 1437
other finance incomecharges – frs 17 pension
expected return on scheme assets 6560 6452
interest on scheme liabilities 5815 5410
745 1042
further information on the pension scheme is set out in note 25 to the accounts
2007 2006
£000 £000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 33
90319renewholdingsra text  71207  1922  page 33 32
djob number90319renewholdings  ra    page 34
6 taxation chargecredit on ordinary activities
a analysis of chargecredit in year
current tax
uk corporation tax on profits of the year 291 
adjustments in respect of previous periods  74
291 74
foreign tax 107 2
total current tax 398 76
deferred tax  pensions 616 
deferred tax  other 919 1425
total deferred tax 303 1425
taxation chargecredit on profit on ordinary activities 95 1349
5 employee numbers and remuneration
the average monthly number of employees
including executive directors during the year was 1341 1322
at 30 september 1512 1326
productive 633 628
administrative 708 694
1341 1322
the analysis of the average monthly number of employees 
including executive directors during the year was
continuing activities 1341 1293
discontinued activities  29
1341 1322
cost of staff including executive directors during the year amounted to
wages and salaries 50858 48598
social security costs 5507 5223
other pension costs 2628 1207
share based payments 97 
59090 55028
details of individual directors’ emoluments and pension contributions can be found on pages 19 and 20 
these figures have been audited
2007 2006
number number
2007 2006
£000 £000
2007 2006
£000 £000
2007 2006
number number
notes to the accounts
90319renewholdingsra text  71207  1922  page 34 33
2007 2006
£000 £000 b factors affecting tax charge for the year
profit on ordinary activities before taxation 7193 4639
profit on ordinary activities multiplied by standard rate of corporation tax in the uk 
of 30 2006 30 2158 1392
effects of
income not subject to tax 224 549
expenses not deductible for tax purposes 90 499
tax deductible expenses not recognised in the profit  loss account 713 353
foreign tax 107 2
utilisation of brought forward tax losses 1020 989
adjustments to tax charge in respect of previous periods  74
current tax charge for the year 398 76
the group and company have available further unused uk tax losses of £88m and £39m respectively and the group
has £22m 43m of tax losses in the usa to carry forward against future taxable profits a substantial element of
these losses relates to activities which are not forecast to generate the level of profits needed to utilise these losses 
a deferred tax asset has been provided to the extent considered reasonable by the directors where recovery is
expected to be recognisable within the foreseeable future the unrecognised deferred tax asset in respect of losses 
is £308m for the group and £109m for the company
c deferred tax
accelerated capital allowances 90 90
tax losses 3815 2989
3725 2899
d reconciliation of deferred tax asset
as at 1 october 2899 1474
acquisition of seymour 93 
change in deferred tax rate to 28 193 
origination of timing differences 1112 1425
at 30 september 3725 2899
6 taxation chargecredit on ordinary activities continued
2007 2006
£000 £000
2007 2006
£000 £000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 35
90319renewholdingsra text  71207  1922  page 35 34
djob number90319renewholdings  ra    page 36
7 dividends
interim related to the year ended 30 september 2007 060 040
final related to the year ended 30 september 2006 080 020
total dividend paid 140 060
£000 £000
interim related to the year ended 30 september 2007 359 240
final related to the year ended 30 september 2006 480 120
total dividend paid 839 360
in accordance with frs 21 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 12p per 
ordinary share be paid in respect of the year ended 30 september 2007 this will be accounted for in the 200708
financial year
2007 2006
penceshare penceshare
frs 22 basis
basic earnings per share 7098 59899 1185 5988 59899 1000
dilutive effect of share options  1154 022  254 005
diluted earnings per share 7098 61053 1163 5988 60153 995
effect of discontinued operations
discontinued basic eps  59899   59899 
2007 2006
weighted weighted
average number average number
earnings of shares eps earnings of shares eps
£000 000 pence £000 000 pence
8 earnings per ordinary share
notes to the accounts
90319renewholdingsra text  71207  1922  page 36 35
goodwill
£000 group
cost
at 1 october 2006 7790
additions 4570
at 30 september 2007 12360
amortisation
at 1 october 2006 3263
charge for year 356
at 30 september 2007 3619
net book value
at 30 september 2007 8741
at 30 september 2006 4527
goodwill of £46m was acquired on the acquisition of seymour cec holdings limited further information is given
in note 24
9 intangible fixed assets
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 37
90319renewholdingsra text  71207  1922  page 37 36
djob number90319renewholdings  ra    page 38
group
cost or valuation
at 1 october 2006  789 5002 5791
additions   1060 1060
disposals   893 893
acquisition of subsidiary 500  4376 4876
at 30 september 2007 500 789 9545 10834
depreciation
at 1 october 2006  645 1327 1972
charge for year  5 1321 1326
disposals   670 670
acquisition of subsidiary   3018 3018
at 30 september 2007  650 4996 5646
net book value
at 30 september 2007 500 139 4549 5188
at 30 september 2006  144 3675 3819
at cost less depreciation 500  4549 5049
at valuation  139  139
at 30 september 2007 500 139 4549 5188
historical cost of revalued properties
cost  715  715
accumulated depreciation  650  650
at 30 september 2007  65  65
the valuations applied as noted above to the long leasehold land and buildings are based on directors’ valuation
the net book value of assets under finance leases at 30 september 2007 was £1026000 2006 £1033000 during
the year £279000 2006 £410000 of depreciation was charged against assets held under finance leases
freehold long leasehold plant vehicles total
land land  buildings  equipment
£000 £000 £000 £000
10 tangible fixed assets
notes to the accounts
90319renewholdingsra text  71207  1922  page 38 37
company
cost or valuation
at 1 october 2006 789 267 1056
additions  20 20
at 30 september 2007 789 287 1076
depreciation
at 1 october 2006 645 202 847
charge for year 5 28 33
at 30 september 2007 650 230 880
net book value
at 30 september 2007 139 57 196
at 30 september 2006 144 65 209
at cost less depreciation  57 57
at valuation 139  139
at 30 september 2007 139 57 196
historical cost of revalued properties
cost 715  715
accumulated depreciation 650  650
at 30 september 2007 65  65
the valuations applied as noted above to the long leasehold land and buildings are based on directors’ valuation
the company has no assets held under finance leases or hire purchase agreements
long leasehold plant vehicles total
land  buildings  equipment
£000 £000 £000
10 tangible fixed assets continued
11 investments
company
shares at cost
at 1 october 2006 152552
additions 6821
at 30 september 2007 159373
provisions
at 1 october 2006 and 30 september 2007 68880
net book value
at 30 september 2007 90493
at 30 september 2006 83672
details of the principal subsidiary undertakings are included in note 27
the investment in subsidiaries is supported by their net asset values and their discounted expected future cash flows
subsidiary
undertakings
£000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 39
90319renewholdingsra text  71207  1922  page 39 38
djob number90319renewholdings  ra    page 40
12 investments in joint venture developments
the investments in joint venture developments consist of
group
at 1 october 2006 2707 561 3268
exchange movements 199 41 240
loan advances  231 231
realisations 206  206
at 30 september 2007 2302 751 3053
the group’s share of assets and liabilities in these joint ventures comprises
stocks 2649 2894
debtors 958 1534
cash 16 1
gross assets 3623 4429
less
creditors 899 1449
partner loans 422 273
gross liabilities 1321 1722
share of net assets 2302 2707
the group’s share of the assets and liabilities in each joint venture varies stocks include interest on nongroup
specific project finance of £769000 2006 £1475000 details of the principal joint ventures are shown in note 27
a letter of credit of £607000 2006 £1257000 remains outstanding at 30 september 2007 this letter of credit
which is guaranteed by the company was issued by barclays bank plc to m  t bank in the usa in respect of the
russett center joint venture
share of loan total
net assets advances
£000 £000 £000
2007 2006
£000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 40 39
14 debtors
due after more than one year
amounts recoverable on contracts 2388 2291  
other debtors 1514 2055  
3902 4346  
due within one year
trade debtors 38908 28240 276 585
due from subsidiary undertakings   24847 19113
amounts recoverable on contracts 39190 35891  
other debtors 1640 8335 237 3401
corporation tax 35 35  
deferred tax note 6 3725 2899 61 
prepayments and accrued income 1620 1693 812 888
85118 77093 26233 23987
included within deferred tax is an amount of £2430000 2006 £769000 which may not be recoverable within 
one year
group company
2007 2006 2007 2006
£000 £000 £000 £000
15 cash at bank and in hand
cash at bank 24559 19725 9893 13951
cash in hand 6 10  
24565 19735 9893 13951
cash at bank includes £04m 2006 £02m in respect of the net position on a sterling bank deposit of 
£81m 2006 £81m and a connected us loan of £77m us 155m translated at the year end rate 
2006 £83m used to hedge part of the intercompany balance due by lovell america inc to the company 
group company
2007 2006 2007 2006
£000 £000 £000 £000
13 stocks and work in progress
group
developments and undeveloped land 6021 18395
raw materials 370 278
6391 18673
2007 2006
£000 £000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 41
90319renewholdingsra text  71207  1922  page 41 40
djob number90319renewholdings  ra    page 42
16 creditors amounts falling due after more than one year
bank loans and overdrafts – secured 165 10093  
obligations under finance leases 429 361  
payments received on account 15426 11555  
trade creditors 43951 39862 109 214
corporation tax 480 56 3 3
other taxation and social security 2053 1806 840 786
due to subsidiary undertakings   98561 97963
other creditors 5951 5496 4652 4418
accruals and deferred income 53897 52326 2825 2089
122352 121555 106990 105473
group company
2007 2006 2007 2006
£000 £000 £000 £000
17 creditors amounts falling due after more than one year
obligations under finance leases 118 311  
accruals and deferred income 1781 1510  
1899 1821  
obligations under finance leases comprise £118000 2006 £280000 due between one and two years and £nil 
2006 £31000 due between two and five years
group company
2007 2006 2007 2006
£000 £000 £000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 42 41
an explanation of the group’s objectives policies and strategies for the role of derivatives and other financial
instruments in managing the risks facing the group can be found within the directors’ report on page 15 the
disclosures below do not include shortterm debtors and creditors as permitted by the exemption allowed in frs 13
interest rate profile of financial assets and liabilities
2007
assets
sterling   28167 28167
dollar   4498 4498
 32665 32665
liabilities
sterling 30 547  547
dollar   7857 7857
547 7857 8404
2006
assets
sterling   24317 24317
dollar   3522 3522
 27839 27839
liabilities
sterling 30 672 10093 10765
dollar  8299 8299
672 18392 19064
the sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or libor
certain us interest bearing liabilities accrue interest at a rate which is linked to the lender’s us prime rate
the maturity of the financial liabilities is disclosed in notes 16 and 17 the fixed rate liabilities have a weighted
average period of one year 2006 two years
currency exposures
the only exposure of the group to currency risk ie exposure to gains or losses on foreign exchange which would be
recognised in the profit and loss account is in respect of the us dollar bank account which is maintained by the
parent company in the uk and the unhedged portion of an intercompany loan at 30 september 2007 the unhedged
portion of the intercompany loan was 4905000 2006 4905000 at 30 september 2007 the balance on the us
dollar bank account was 1000 2006 1000
all functional currencies of the group operations are denominated in sterling with the exception of the us operations
whose functional currency is the us dollar
hedges
the company has a loan hedge of 15537000 2006 15537000 with barclays bank plc against the intercompany
balance due by lovell america inc exchange gains of £608000 2006 £515000 were made during the year on
foreign currency borrowings this has been fully offset against exchange losses made on the hedged portion of the
intercompany balance due by lovell america inc 
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
18 derivatives and other financial instruments
fixed rate financial assetsliabilities
weighted average fixed floating 
interest rate rate rate total
 £000 £000 £000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 43
90319renewholdingsra text  71207  1922  page 43 42
djob number90319renewholdings  ra    page 44
19 share capital
group and company
authorised
100000000 2006 100000000 ordinary shares of 10p each 10000 10000
allotted called up and fully paid
59898927 2006 59898927 ordinary shares of 10p each 5990 5990
share options
the group operates a share option scheme the renew holdings 2004 executive share option scheme the scheme
has both an approved and unapproved element the difference between the two elements is that the approved
scheme has the advantage of certain inland revenue approved tax benefits
both elements have the same general terms and conditions options issued under the scheme must be held for three
years before they can vest and become exercisable they must be exercised within 10 years from the date of grant 
vesting of options is dependent on the achievement of certain performance criteria which are established by the
remuneration committee in respect of the options granted prior to this financial year 25 of the options will vest if
the group’s earnings per share for the year ending 30 september 2008 exceeds 8p for 100 vesting to occur the
group’s earnings per share for the year ending 30 september 2008 must be at least 12p in respect of the options
granted during this financial year 25 of the options will vest if the group’s earnings per share for the year ending 
30 september 2009 exceeds 12p for 100 vesting to occur the group’s earnings per share for the year ending 
30 september 2009 must be at least 14p the scheme does not permit retesting of performance conditions and if the
performance criteria are not achieved then the options will lapse
the number of options in issue and their exercise price is given in note 20
2007 2006
£000 £000
20 reserves
group
at 1 october 2006 5893 73 3896  10536
transfer from profit and loss account for the year 7098
dividends paid 839
recognition of share based payments 97 
exchange differences 150
actuarial loss recognised in pension scheme 1804
movement on deferred tax relating to the pension scheme 427
at 30 september 2007 5893 73 3896 97 5804
there is no available analysis of goodwill written off against reserves in respect of existing subsidiaries that were acquired
prior to 1989 and therefore in accordance with the guidance of frs 10 the directors are not able to state this figure
goodwill written off against reserves in respect of subsidiaries acquired after 1989 amounts to £nil 2006 £nil
share capital share based profit  loss
premium revaluation redemption payments account 
£000 £000 £000 £000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 44 43
20 reserves continued
company
at 1 october 2006 5893 73 3896 494
transfer from profit and loss account for the year 4221
recognition of share based payments 97 
dividends paid 839
at 30 september 2007 5893 73 3896 97 3876
share based payments reserve
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 by baker tilly chartered accountants using a blackscholes valuation
model the fair value determined at the grant date of the equity settled share based payments is expensed on a
straightline basis over the vesting period based on the group’s estimate of shares that will eventually vest
£97000 has been charged to administrative expenses
there is no impact on net assets since an equivalent amount is credited to the share based payments reserve no
options were exercised or lapsed during the year the value per option represents the fair value of the option less the
consideration payable the expected volatility is based on historical volatility of the share price since the company
listed on aim in 2001 the risk free rate of return has been derived from the bank of england’s yield curve taking the
spot rate for a maturity of 36 months this period has been selected as being the minimum period over which the
options could remain extant
options granted under the renew holdings 2004 executive share option scheme over the company’s ordinary
shares at 30 september 2007 were as follows
date of grant 7 june 2006 8 january 2007 total
awards outstanding at 30 september 2007 – directors 761904 522292 1284196
exercise price and price at date of grant 525p 785p 
maximum option life 10 years 10 years 
assumed option life for purposes of valuation 3 years 3 years 
expected volatility 47 46 
dividend yield 1 150 
risk free interest rate 467 488 
value per option 205p 259p 
there were 761904 options outstanding at 1 october 2006 being those issued on 7 june 2006 and detailed above
share capital share based profit  loss
premium revaluation redemption payments account 
£000 £000 £000 £000 £000
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 45
90319renewholdingsra textqxp  101207  0938  page 45 44
djob number90319renewholdings  ra    page 46
22 capital and leasing commitments
group
annual commitments under noncancellable
operating leases expiring in
under one year 81 113 194 1013
two to five years 518 328 846 935
five or more years 2651 78 2729 2892
3250 519 3769 4840
company
annual commitments under noncancellable
operating leases expiring in
under one year 29 3 32 881
two to five years 224 31 255 488
five or more years 1662  1662 2031
1915 34 1949 3400
the group has capital commitments at 30 september 2007 of £90000 2006 £nil
21 reconciliation of movements in group shareholders’ funds
group
profit for the year 7098 5988
dividends paid 839 360
6259 5628
other recognised gains and losses for the year 1527 5108
recognition of share based payments 97 
net movement on shareholders’ funds 4829 520
at 1 october 2006 5316 4796
at 30 september 2007 10145 5316
2007 2006
£000 £000
land  other total total
buildings 2007 2006
£000 £000 £000 £000
land  other total total
buildings 2007 2006
£000 £000 £000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 46 45
24 acquisition of subsidiary undertaking
on 25 july 2007 the company acquired the whole of the issued share capital of seymour cec holdings limited a
company registered in england  wales seymour cec holdings limited is a dormant holding company which has
a wholly owned subsidiary seymour civil engineering contractors limited seymour which trades as civil
engineers from the date of acquisition seymour has contributed sales of £40m and a profit before taxation of £nil to
the consolidated results 
the value of the assets and liabilities of seymour at the date of acquisition were
fixed assets
tangible assets 1859
current assets
stocks and work in progress 72
debtors due within one year 3619
cash at bank and in hand 889
4580
creditors amounts falling due in less than one year 3948
net current assets 632
total assets less current liabilities 2491
creditors amounts falling due after more than one year 240
net assets 2251
the consideration paid was £6821000 in cash goodwill of £4570000 was acquired on acquisition and will be
reviewed for impairment one year after the acquisition as permitted by frs 10
the trading result and cashflows of seymour are not considered by the directors to be significant enough to warrant
separate disclosure in accordance with frs 3
the value of land acquired with seymour and included in tangible fixed assets has been increased from £239000 to
£500000 as a result of a fair value adjustment the land was independently valued by hanline associates
book value
£000
23 contingent liabilities
the company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the
normal course of business
a letter of credit guaranteed by the company has been issued by barclays bank plc to mt bank see note 12
as part of the office of fair trading’s review of tender activities within the construction industry the company notes
that one of its subsidiaries has been contacted in relation to some historic contract tenders these tenders represent a
small proportion of the tenders made during the period in question it is not possible to predict whether this enquiry
will have an adverse effect on the group’s financial position or results of its operations
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 47
90319renewholdingsra text  71207  1922  page 47 46
djob number90319renewholdings  ra    page 48
notes to the accounts
25 pension commitments
defined benefit scheme
the defined benefit scheme was closed to new members in june 2000 on 1 august 2001 the board decided that no
further benefits would accrue to existing members with more than five years expected service remaining these
members were transferred to the defined contribution scheme but retained the benefits earned to date under the defined
benefit scheme 
frs 17 “retirement benefits”
the directors have adopted the accounting required by frs 17 with effect from 1 october 2003 the directors have
discussed the assumptions used in determining the actuarial valuations set out below with independent pensions
advisors and have determined that they are appropriate
the following disclosures required by frs 17 have been based on the most recent actuarial valuation as at 
30 september 2007 carried out by barnett waddingham consulting actuaries using the following financial
assumptions
rate of increase in salaries 400 400 400
lpi increases to pensions in payment 290 250 250
discount rate 620 530 520
inflation assumption 290 250 250
increases in deferred pensions 290 250 250
the assets in the scheme and the expected rates of return were
equities  850  795  785
gilts  25 fund 54914 750 56494 695 57212 685
bonds 47998 620 52058 530 51401 520
cash 36 575 89 475 79 450
total 102948 108641 108534
as at as at as at 
30 september 30 september 30 september
2007 2006 2005
value as at expected rate value as at expected rate value as at expected rate
30 september of return 30 september of return 30 september of return
2007 2006 2005
£000 £000 £000
90319renewholdingsra text  71207  1922  page 48 47
notes to the accounts
annual report  accounts 2007
25 pension commitments continued
the following amounts at 30 september were measured in accordance with the requirements of frs 17
total market value of assets 102948 108641 108534 
present value of scheme liabilities 106507 112596 106906 
deficitsurplus in the scheme 3559 3955 1628 
deferred tax 997 1186  
net deficitsurplus 2562 2769 1628 
balance sheet adjustments to reduce surplus to nil at 30 september 2005   1628 
net deficit 2562 2769  
frs 17 was adopted with effect from 1 october 2003 the two columns in the following tables identify the actual
amounts included in the 2007 accounts and the 2006 comparatives
amounts charged to operating profit
current service cost excluding employee contributions 79 68
79 68
amount charged to other financial incomecharges
expected return on assets 6560 6452
interest on scheme liabilities 5815 5410
745 1042
amounts recognised in the statement of total recognised gains and losses
actual less expected return on assets 7960 1786
experience losses on liabilities 575 72
effect of change in assumptions on liabilities 6731 5945
actuarial loss 1804 7803
adjustment for pension asset not recognised in previous year  1628
1804 6175
movement in the deficit during the year
deficit brought forward 3955 
current service cost excluding employee contributions 79 68
cash contribution excluding employee contributions 1534 1246
other financial charges 745 1042
actuarial loss 1804 7803
net deficit 3559 5583
adjustment for pension asset not recognised in previous year  1628
deficit carried forward 3559 3955
the group has agreed an annual contribution rate of £1716000 with the trustees of the defined benefit scheme with
effect from 1 april 2007 
as at as at as at 
30 september 30 september 30 september 
2007 2006 2005 
£000 £000 £000 
at 30 september at 30 september
2007 2006
£000 £000
djob number90319renewholdings  ra    page 49
90319renewholdingsra text  71207  1922  page 49 48
djob number90319renewholdings  ra    page 50
25 pension commitments continued
difference between the expected and £7960000 £1786000 £6623000 £426000 £338000
actual return on scheme assets
as a percentage of the assets at the end of the year 80 16 610 042 023
experience lossesgains on scheme liabilities £575000 £72000 £647000 £1176000 £336000
as a percentage of the liabilities at the end of the year 10 000 061 111 023
total amount recognised in the statement £1804000£7803000 £412000 £11294000 £25340000
of total recognised gains and losses
as a percentage of the liabilities at the end of the year 169 693 039 1070 1770
the scheme has been in operation for many years and after taking advice from the group’s pensions advisors the
directors have determined that it is not possible to allocate the assets and liabilities of the scheme between the
various group companies as permitted by frs 17 the group has taken advantage of the multiemployer exemption
and the deficit of the scheme is accounted for as an unallocated consolidation adjustment
money purchase scheme 
the assets of the money purchase scheme are held in separate trusteeadministered funds the group made
contributions of £1494000 2006 £1139000 into the money purchase scheme during the year there is also
£114000 2006 £68000 of accruals relating to the scheme
26 cash flow notes
operating profit 5017 3473
amortisation of goodwill 356 306
depreciation 1326 1523
profit on sale of fixed assets 85 
decreaseincrease in stocks and work in progress 11910 9551
increase in operating debtors and prepayments 3067 866
decrease in current asset investments  16643
increasedecrease in creditors and accruals 7573 1152
net movement on pension deficit included within operating profit note 25 79 68
cash contribution to defined benefit scheme 1534 1246
charge in respect of share options 97 
realisation of joint venture assets 206 1463
net cash inflow from operating activities 21878 10661
2007 2006 2005 2004 2003
2007 2006
£000 £000
notes to the accounts
90319renewholdingsra text  71207  1922  page 50 49
26 cash flow notes continued
analysis of net funds
cash 19735 5110 280 24565
debt due within one year 10093 9928 165
finance leases due after one year 311 193 118
finance leases due within one year 361 68 429
10765 10053  712
net funds 8970 15163 280 23853
the noncash movement on cash relates to an unrealised foreign exchange loss on translation of the opening balance
sheet of the us subsidiary
27 principal subsidiary undertakings and joint ventures
the company acts as the holding company of the group the principal activity of the group during the year was
construction and construction related activities
the principal subsidiary undertakings and joint ventures are shown below 
subsidiary undertakings
yjl ltd owned by renew holdings plc england and wales 100
allenbuild ltd owned by subsidiary england and wales 100
britannia construction ltd owned by subsidiary england and wales 100
walter lilly  co ltd owned by subsidiary england and wales 100
yjl london ltd owned by subsidiary england and wales 100
yjl infrastructure ltd owned by subsidiary england and wales 100
vhe construction plc owned by subsidiary england and wales 100
shepley engineers ltd owned by subsidiary england and wales 100
seymour civil engineering contractors ltd owned by subsidiary england and wales 100
lovell america inc owned by subsidiary usa 100
joint ventures  interest
russett center limited partnership usa 50
100 investment limited partnership center 9500 usa 67
the joint venture entities are held by lovell america inc
at 1 october noncash at 30 september
2006 cash flow movements 2007
£000 £000 £000 £000
incorporation  proportion of
principal place ordinary shares
of business held by the company
notes to the accounts
annual report  accounts 2007
djob number90319renewholdings  ra    page 51
90319renewholdingsra text  71207  1922  page 51 50
shareholder
information
annual general meeting 30 january 2008
results announcement of interim results – may 2008
preliminary announcement of full year results  november 2008
electronic communications
following shareholder approval to amend the company’s articles at the agm in march 2006 the company may
deliver shareholder information including annual and interim reports and notices of general meetings in an electronic
format to shareholders
if you would like to receive shareholder information in electronic format please register your request on the
company’s registrar’s electronic database at wwwcapitaregistrarscom you will initially need your unique “investor
code” which you will find at the top of your share certificate there is no charge for this service if you wish to
subsequently change your mind you may do so by contacting the company’s registrars by post or through 
their website
if you elect to receive shareholder information electronically please note that it is the shareholder’s responsibility to
notify the registrars of any change to their name address email address or other contact details shareholders
should also note that with electronic communication the company’s obligations will be satisfied when it transmits the
notification of availability of information or such other document as may be involved to the electronic address it has on
file the company cannot be held responsible for any failure in transmission beyond its control any more than it can
for postal failure in the event of the company becoming aware that an electronic notification is not successfully
transmitted a further two attempts will be made in the event that the transmission is still unsuccessful a hard copy of
the notification will be mailed to the shareholder in the event that specific software is required to access information
placed on the company’s website it will be available via the website without charge before electing for electronic
communications shareholders should ensure that they have the appropriate equipment and computer capabilities
sufficient for the purpose the company takes all reasonable precautions to ensure no viruses are present in any
communication it sends out but cannot accept responsibility for loss or damage arising from the opening or use of any
email or attachments from the company and recommends that shareholders subject all messages to virus checking
procedures prior to use any electronic communication received by the company that is found to contain any virus will
not be accepted
shareholders wishing to receive shareholder information in the conventional printed form will continue to do so and
need take no further action
should you have any further questions on this please contact the company’s registrars capita registrars 
on 0870 162 3131
djob number90319renewholdings  ra    page 52
90319renewholdingsra text  71207  1922  page 52 51
directors 
advisors
directors 
r harrison nonexecutive chairman 
b may chief executive 
j samuel fca group finance director 
j bishop fca independent nonexecutive
registrars auditors
capita registrars plc kpmg audit plc
northern house 1 the embankment
woodsome park neville street
fenay bridge leeds
huddersfield ls1 4dw
hd8 0la
nominated advisor and broker
brewin dolphin securities ltd
34 lisbon street
leeds
ls1 4lx
company secretary b feather llb
company number 650447
registered address yew trees
main street north
aberford
west yorkshire
ls25 3aa
website address wwwrenewholdingscom
annual report  accounts 2007
djob number90319renewholdings  ra    page 53
90319renewholdingsra text  71207  1922  page 53 52
notice of annual 
general meeting
djob number90319renewholdings  ra    page 54
notice is hereby given that the fortyeighth annual general meeting of the company will be held at the offices of
brewin dolphin securities limited 12 smithfield street london ec1a 9bd on 30 january 2008 at 1100am
the meeting will consider the following business
ordinary business
to consider and if thought fit to pass the following ordinary resolutions
1 to receive and adopt the accounts for the year ended 30 september 2007 and the reports 
of the directors and auditors thereon
resolution 1
2 to declare a final dividend of 12p per share 
resolution 2
3 to reelect the following director who retires in accordance with the company’s articles 
of association roy harrison 
resolution 3
4 to approve the remuneration report for the year ended 30 september 2007 
resolution 4
5 to reappoint kpmg audit plc as auditors of the company having previously been appointed 
on 31 july 2007 by the directors to fill a casual vacancy arising on the resignation of 
rsm robson rhodes llp and to authorise the directors to determine their remuneration
resolution 5
special business
to consider and if thought fit to pass resolution 6 which shall be proposed as a special resolution
6 that the power conferred upon the directors by regulation 53 of the company’s articles of
association to allot equity securities as defined in section 942 of the companies act 1985
wholly for cash free from the preemption provisions in section 89 of the companies act 1985
be renewed for the period ending on the date of the annual general meeting in 2009 or on 
30 april 2009 whichever is the earlier and for such period the “section 89 amount” referred 
to in regulation 5 of the company’s articles of association shall be £299495
resolution 6
by order of the board
b c feather llb
company secretary
27 november 2007
renew holdings plc 
registered office yew trees main street north aberford west yorkshire ls25 3aa
90319renewholdingsra text  71207  1922  page 54 53
notice of annual 
general meeting
notes
1 holders of ordinary shares are entitled to attend and vote at this meeting a shareholder entitled to attend and vote
may appoint a proxy or proxies who need not be a shareholder of the company to attend speak and vote instead
of him or her should a shareholder wish to appoint more than one proxy the shareholder is requested to attach to
the proxy form a schedule detailing the names of the proxies the shareholder wishes to appoint the number of
shares each proxy will represent and the way in which the shareholder wishes them to vote on the resolutions that
are to be proposed
2 proxy forms and the powers of attorney or other authority if any under which they are signed need to be deposited
at the office of the company’s registrars capita registrars proxy department po box 25 beckenham kent br3
4br not later than 48 hours exclusive of any time in a nonworking day before the time of the meeting completion
of a proxy will not preclude a shareholder from attending and voting in person at the meeting
3 pursuant to regulation 41 of the uncertified securities regulations 2001 members will be entitled to attend and
vote at the meeting if they are registered in the company’s register of members 48 hours before the time appointed
for the meeting or any adjournment thereof
4 resolution 5 on 31 july 2007 rsm robson rhodes llp resigned as auditors and the directors appointed kpmg
audit plc in their place special notice of the resolution proposing the reappointment of kpmg audit plc has been
received by the company pursuant to sections 391a and 379 of the companies act 1985 kpmg audit plc has
confirmed that it is willing to continue in office
5 resolution 6 by resolution 6 the directors are seeking renewal of the power to allot shares for cash for the purposes
of a rights issue or otherwise in connection with a rights issue limited to the issue of shares up to an aggregate
nominal value of £299495 being 5 of the issued ordinary share capital of the company at the date of this notice
if given this power will expire at the company’s agm in 2009 or on 30 april 2009 whichever is the earlier
location of agm
underground
farringdon and barbican are both on the circle
metropolitan and hammersmith  city lines 
chancery lane and st paul’s are on the central line
train
the nearest stations are city thameslink and farringdon
bus
services 8 25  521 stop on holborn viaduct
services 8 25 56 242  521 all stop on newgate street
for further information about public transport in london 
visit the transport for london website at wwwtflgovuk 
or phone london travel information on 020 7222 1234
car parking
car parks are located on the map opposite
12 smithfield street london ec1a 9bd
annual report  accounts 2007
djob number90319renewholdings  ra    page 55
90319renewholdingsra text  71207  1922  page 55 54
group
businesses
djob number90319renewholdings  ra    page 56
shepley engineers
robinson house
westlakes science park
moor row
cumbria 
ca24 3hy
tel 01946 599 022
vhe
phoenix house
hawthorn park
coal road
seacroft
leeds
ls14 1pq
tel 0113 273 9200
seymour
3034 navigation point
hartlepool
ts24 0vq
tel 01429 223521
yjl london
18 mansell street
london
e1 8aa
tel 020 7977 0050
yjl infrastructure
39 cornhill
london
ec3v 3nu
tel 020 7522 3220
walter lilly
waddon house
283 stafford road
croydon
surrey
cr0 4nn
tel 020 8730 6200
britannia construction
britannia house
staverton technology park
cheltenham
gloucestershire
gl51 6tq
tel 01452 859 880
allenbuild
jubilee house
waterside drive
wigan
wn3 5az
tel 01942 246 265
unecol house
819 london road
north cheam
surrey
sm3 9bn
tel 020 8335 4800
phoenix house
hawthorn park
coal road
seacroft
leeds
ls14 1pq
tel 0113 237 5600
stoneygate road
spondon
derby
de21 7ry
tel 01332 680 400
seymour
90319renewholdingsra text  71207  1922  page 56 djob number90319renewholdings  ra    page 2
renew delivers specialist
construction services in
engineering and building
through its branded businesses
which operate in robust and
sustainable markets
financial highlights 01
chairman’s statement 02
chief executive’s review 03
financial review 05
review of operations 06
specialist engineering 06
specialist building 09
corporate social responsibility 13
directors’ report 14
directors’ remuneration report 18
corporate governance 21
statement of directors’ responsibilities 23
independent auditors’ report 24
group profit  loss account 25
group statement of 
total recognised gains  losses 25
balance sheets 26
group cash flow statement 27
notes to the accounts 28
shareholder information 50
directors  advisors 51
notice of annual general meeting 52
group businesses 54
produced by salient communications tel 01635 861112
djob number90319renewholdings  ra    page 57
90319renewholdingsra cover  71207  1750  page 2 renew holdings plc annual report  accounts 2007
annual report  accounts   2007
delivering specialist
construction services
djob number90319renewholdings  ra    page 1
renew holdings plc
yew trees main street north
aberford west yorkshire ls25 3aa 
tel 0113 281 4200 fax 0113 281 4210
web wwwrenewholdingscom
company number 650447 
registered in england  wales
djob number90319renewholdings  ra    page 58
90319renewholdingsra cover  71207  1750  page 1


Summary:
 03 chief 
executive’s
review
annual report  accounts 2007
djob number90319renewholdings  ra    page 5
overview 
another year of strong performance has
been delivered across all of our business
with profit before tax up 55 this profit
growth has been matched by cash which
remains a primary objective and we have
achieved our target of delivering a 2
group profit before tax a year earlier than
anticipated the group strategy which
has been progressively implemented 
over the last two years is now firmly
established both operationally and
culturally and its benefits are reflected in
these very positive results 
all of our specialist market sectors
continue to demonstrate robust
fundamentals during the year we grew
our specialist engineering activities
organically by over 20 whilst expanding
into new markets through the acquisition
of seymour a specialist contractor in the
water sector this was achieved whilst
maintaining target margins and following
the acquisition specialist engineering is
now expected to account for more than
20 of group turnover 
in specialist building we maintained
turnover at a similar level to last year
while increasing operating profits by
42 with margins up to 14 from
10 this is an excellent achievement
and demonstrates the significant
improvement in risk management as 
we progress towards our target of 2
operating margins in specialist building
within the next two years 
group operating margins increased by
40 during the year and as a result 
we have set a new objective for the
group of achieving an operating profit
margin of at least 25 by 2010 
the group order book has grown by
more than 21 during the period and the
order intake since the end of the financial
year has been very strong the secured
forward order book at 30 september
2007 stood at £252m compared to
£209m a year ago our selective
approach to winning new contracts has
meant the proportion of new orders that
fall within our specialist areas of activity
has increased to nearly 80 the level of
contracts secured from repeat customers
has also increased to 72 our level of
negotiated framework and two stage
tendered work reached 68 this gives
us greater earnings visibility and further
reduces risk both of which remain key
objectives going forward
specialist engineering
i am delighted that the quality of our
specialist engineering work is being
recognised both by our customers and
third parties vhe was awarded the
specialists in construction award from 
construction news and was runner up 
in brownfield briefing’s remediation
innovation awards it was also awarded
the rospa gold medal in may in
recognition of five consecutive years of
gold awards shepley engineers was
awarded a second consecutive rospa
president’s award for an outstanding
performance in health  safety at work
over an eleven year period seymour won
two ceca training awards and was
runner up for the north east ceca
project of the year
in nuclear the largest spend within the
national civil nuclear legacy programme is
at sellafield in cumbria where shepley
engineers has worked continuously for
more than 25 years shepley engineers is
the largest mechanical and electrical
contractor at sellafield with a workforce
in excess of 400 people overall activity is
well balanced between operational asset
support and the decommissioning and
demolition of redundant facilities during
the year shepley engineers was awarded
four longterm frameworks at sellafield
the most important being the major 
multi disciplinary site wide framework
where the company is one of three 
tier 2 contractors alongside amec and 
hertel this framework is worth in 
excess of £25m over the next two years
and includes an option for a further two
year extension
in land remediation vhe was
reappointed as a term contractor by
national grid property limited to
continue remediation works on sites
across the uk this three year framework
contract is worth £10m per annum and
has an option to extend it for a further
two years major contracts with other
clients include the remediation of former
coalfired power stations in rugeley in
staffordshire and stella south near
gateshead both entailed substantial land
reclamation to create clean development
platforms for future housing development
in water the group acquired seymour a
leading civil engineering business in the
north east of england in july 2007
seymour carries out water infrastructure
development and maintenance flood
alleviation and coastal protection and
urban renewal works to the public and
private sectors seymour has a long
standing relationship with northumbrian
water and has recently had its framework
agreement extended until 2011 recent
contracts also include a £6m coastal
protection scheme completed over two
phases at seaton carew and a £1m
contract to install a new raw water 
main at teesside power station the
integration of seymour is progressing 
well and we are confident of growing the
business as part of the enlarged group
building 
£265m
 
engineering 
£69m 
 
building 
£37m 
engineering 
£34m 
turnover 
profit 
90319renewholdingsra text  71207  1921  page 5 04 chief 
executive’s
review
djob number90319renewholdings  ra    page 6
specialist building
our specialist building businesses have
experienced a strong increase in repeat
business as well as a number of 
industry commendations including 
riba rics and breeam awards for
architectural design innovation and
environmental construction 
in social housing allenbuild now has 
six framework agreements with major
housing associations in the south east
we have recently been awarded a £15m
contract by metropolitan housing
association to build 106 new apartments
and retail space in hackney we have a
pipeline of projects with logic homes in
excess of £60m and more than £40m
with other framework partners allenbuild
is actively incorporating modern methods
of construction into its social housing
workload and is committed to achieving
zero defects on all projects 
in retail britannia construction 
secured a number of new clients and
developments including its appointment
as a framework contractor to marks 
spencer and continued to strengthen its
relationships with existing customers 
such as tesco a £66m redevelopment
of fareham town shopping centre for
dominion corporate trustees was started
in the summer for a new 32000 sq ft
extension to the existing shopping mall
allenbuild also completed the £6m north
walk development at the crystal peaks
shopping centre in sheffield for hermes
and secured repeat business with
dransfield properties for the £56m
jasper square development in tunstall
this sector is experiencing a very strong
level of enquiries
in restoration and refurbishment a
notable scheme undertaken by the group
was the £13m restoration of the historic
iron fabric at st pancras station london
we continue to see strong demand from
the high quality residential sector in
london with a number of prestigious 
high quality projects underway we 
also commenced a new framework 
with grosvenor which involves the
refurbishment of several properties in
mayfair and belgravia the £8m
refurbishment of walmsley house into
170 student units for investream was
completed the second project for this
client illustrating the high level of 
repeat business we conduct in this
specialist sector
in science and education walter lilly
enjoyed a successful year with projects
for university college london and the
burlington danes laboratory fit out as part
of the imperial college framework as well
as securing the £205m queen mary
innovation centre construction project for
the queen mary university london work
also continued for longstanding client
glaxosmithkline’s research and
development arm with two laboratory
refurbishment projects allenbuild
commenced the construction of the
£17m rossington all saints secondary
school and sports village for the diocese
of sheffield it has also completed the
main phase of the british library’s £13m
additional storage programme the
world’s first largescale automated
document retrieval complex to use
oxygen depletion technology as a fire
resistance strategy 
property and other activities
the on time and on budget completion of
a major development project for wichford
plc valued at £153m demonstrated how
the group’s various capabilities in
development land remediation and
construction could be brought together
successfully and profitably we continue
to look for other suitable development
opportunities and have recently started
construction of a specialist manufacturing 
building in cumbria for an american
client we also continue to realise surplus
land both in the uk and usa and i am
confident of further land realisations in
200708
people
we continue to attach great importance
to health  safety practices across 
the group i am delighted to report that
during the year we have decreased the
accident incidence rate by 41 which
given our annual target of a 10
reduction is a major achievement 
the improvement in the group’s
performance is a testament to the hard
work and dedication of all of our
employees for which the board is
extremely grateful
strategic update
the benefits of our strategic focus and
improved management practices are
becoming increasingly evident our
specialist activities are also well
positioned in serving robust market
sectors with good potential for growth
this provides an excellent platform for
the future and we will continue to 
expand our presence in our existing 
areas of activity both organically and 
in specialist engineering via further
strategic acquisitions the group’s strong
financial position and cash generation
provides excellent flexibility for funding
any future acquisitions
our goal is within the next three years
for the group’s specialist engineering
activities to increase to at least a third of
group turnover we are targeting group
turnover of at least £500m by 2010
however we will not lose sight of our
primary objective of delivering increased
cash backed profits from progressive
operating margin improvement with the
target of a group operating profit margin
of 25 by the same date
brian may
chief executive
27 november 2007
90319renewholdingsra text  71207  1921  page 6