annual report  accounts  2008
delivering
specialist
construction
services
renew holdings plc annual report  accounts  2008
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
93035 renew ra 2008 cover page obc 93035 renew ra 2008 cover page ofc
93035renewra2008coverqxp93035renewra2008cover  121208  1338  page 1 renew delivers specialist construction
services in engineering and building
through its branded businesses which
operate in robust and sustainable markets
36 independent auditors’ report
37 group income statement
37 group statement of recognised income and expense 
38 group balance sheet
39 group cash flow statement
40 notes to the accounts
66 company balance sheet
67 notes to company accounts
74 shareholder information
75 directors and advisors 
76 notice of annual general meeting 
80 group businesses 
01 financial highlights 
02 chairman’s statement 
03 chief executive’s review
05 financial review
06 review of operations
06 specialist engineering
14 specialist building
24 corporate social responsibility
26 directors’ report
30 directors’ remuneration report 
33 corporate governance 
35 statement of directors’ responsibilities 
produced by salient communications tel 01635 861112
93035 renew ra 2008 cover page ifc 93035 renew ra 2008 cover page ibc
93035renewra2008coverqxp93035renewra2008cover  121208  1338  page 2 revenue £3906m
2007 £3481m
profit 
before tax
2007 £74m
earnings 
per share 122p

2007 122p
full year
dividend 30p
2007 18p
net cash
balance £282m
2007 £244m
net assets £143m
2007 £100m
financial highlights
01 financial highlights
12
up
67
up
15
up
43
up
£95m

figures given prior to exceptional items and amortisation charges
up
29
annual report  accounts 2008
93035 renew ra 2008 text page 1
93035renewra2008textqxp93035renewra2008text  121208  1809  page 1 introduction
i am pleased to report a strong set of results
we are successfully meeting our strategic
objectives for our two main business
streams in specialist engineering we have
continued to grow revenue which was
bolstered by a full year’s contribution from
seymour while in specialist building we saw
a marked increase in revenue and particularly
in operating profits prior to exceptional items
against a background of increasingly difficult
market conditions the results again illustrate
the quality and sustainability of earnings with
our forward order book indicating an increased
level of work in our specialist sectors
results
group revenue for the year ended 
30 september 2008 was £3906m 
2007 £3481m a 12 increase over the
corresponding period last year profit before
income tax for the year prior to exceptional
items and amortisation charges was up 29
to £95m 2007 £74m profit after tax
exceptional items and amortisation charges
was £53m 2007 £73m
at 30 september 2008 the group’s net cash
position stood at £282m 2007 £244m
as has been well documented conditions 
in the house building market which is 
the principal end market for our land
remediation business have worsened
considerably over the last six months 
we are also seeing weaker market conditions
for our nonspecialist and retail businesses
which jointly accounted for 46 of 
specialist building revenue in 2008
as stated in our preclose announcement on
1 october 2008 the board has taken
decisive action to address these issues by
realigning the land remediation activities to
address the more robust regional civil
engineering market whilst retaining its land
remediation capability in specialist building
the group has reduced capacity by 15
whilst these actions have resulted in an
exceptional charge in 2008 of £15m for
redundancy costs the resultant saving in
annual costs will be in excess of £5m
the group’s order book at 30 september
2008 stood at £219m 2007 £252m 
with pleasingly 79 represented by repeat
order work the 13 reduction which is
predominantly in nonspecialist areas is 
in line with the implemented capacity
reductions this reflects our emphasis on
project selectivity and quality of earnings as
we seek to continue to improve percentage
operating margins in these more challenging
market conditions 
dividend
in accordance with the group’s progressive
policy a final dividend of 20p per share
2007 12p is being proposed this takes
the total dividend for the year to 30p 
2007 18p a 67 increase over last year
the dividend will be paid on 23 february
2009 to shareholders on the register as at 
30 january 2009 and in accordance with
accounting standards will be accounted for 
in the 2009 financial year the shares will
become exdividend on 28 january 2009
growth strategy
our declared strategy of focusing on two
distinct business streams specialist
engineering and specialist building remains
in place
our aim is to increase revenue in specialist
engineering both organically and by
acquisition with operating margins of at least
4 in specialist building our aim is to
continue to increase operating margins with 
a mediumterm target of 2 currently our
specialist building margin stands at 17
our mediumterm objective remains to
develop a specialist construction business
with overall operating margins of 25 and
with specialist engineering providing 33 
of revenue
outlook
market conditions are more challenging but
the group is operating from a position of
strength supported by a strong balance
sheet with cash resources available to take
advantage of carefully considered
opportunities which may arise our
management team led by our chief executive
brian may is very experienced and i am
confident in their ability to deliver excellent
performance in the difficult economic climate
the impact of the decisive action taken in
september to realign and reduce capacity
and the continued resilience of our specialist
markets gives the board confidence that we
can continue to grow the group’s operating
margin percentage albeit on reduced levels of
activity in 2009
roy harrison obe
chairman
25 november 2008
chairman’s statement 02
chairman’s statement
£74m
£95m

£46m
profit before tax £m
10
0
2006 2007 2008
50
0
£244m
£282m
2006 2007 2008
£194m
net cash £m
figures given prior to
exceptional items and
amortisation charges
annual report  accounts 2008
93035 renew ra 2008 text page 2
93035renewra2008textqxp93035renewra2008text  121208  1809  page 2 03 chief executive’s review
chief executive’s review
overview
our strategy of seeking growth in specialist
engineering whilst maintaining target
margins combined with growing margins in
specialist building continues 
in specialist engineering revenue increased
by 36 which included a full year’s
contribution from seymour which we
acquired in july 2007 whilst margins were
lower due to falling demand for land
remediation related to the house building
sector they remain at 37 over double that
of the margins in building the forward order
book in specialist engineering stands at
£49m 2007 £54m
revenue in specialist building increased by
11 with a 34 increase in operating profit
to £49m prior to exceptional charges the
forward order book in specialist building is
£170m 2007 £198m 14 lower than last
year which is in line with the capacity
reductions implemented in september
our total order book remains strong at
£219m 2007 £252m with 86 being in
our specialist sectors and 79 in the form of
repeat business these key performance
indicators remain ahead of our targets of
66 in each case
as part of our strategy of developing our
specialist engineering business we continue
to look for complementary acquisitions that
can meet our demanding criteria
immediately following the year end we
completed the acquisition of ca pumps
limited “ca” a specialist water services
business based in county durham but which
operates nationally ca will combine with
seymour to offer an extended package of
capability to the water industry this
acquisition is a further demonstration of our
commitment to grow our specialist
engineering business both organically and by
acquisition and follows on from the previous
acquisitions of seymour itself and pps
engineering limited in the nuclear sector
review of operations
specialist engineering
nuclear
shepley engineers continues to be the
largest tier 2 mechanical and electrical
contractor at sellafield operating in the fields
of asset support and decommissioning
activity levels on the multi disciplined site
wide framework were 70 above those
anticipated our four frameworks continue at
sellafield with extensions recently agreed on
both demolition and decommissioning our
pps subsidiary which we acquired in 2006
had an exceptional year outperforming
forecasts and repaying its acquisition cost
within two years we have also secured a
position in a consortium with energysolutions
to process metals recycling at sellafield and
drigg we continue to have activity at the
springfields facility at preston and have also
been awarded a decommissioning project at
capenhurst which is our first award at 
this site
land remediation
in response to the downturn in the house
building market we have quickly realigned
the vhe business to access regional civil
engineering opportunities this is
demonstrated by the recent £15m award of
the cudworth bypass which is the fifth major
award in recent years from barnsley mbc
vhe retains its land remediation capability
and has established itself as the leading
specialist contractor for local authority
remediation works under part lla of the
environment act completing five such
residential projects during the year with a
further recent £2m award in glasgow we are
also seeing renewed activity for 2009 from
the national grid framework
water
the seymour acquisition has been fully
integrated into the group and is performing in
line with our expectations and acquisition
plans with 15 organic growth achieved this
year the northumbrian water framework
continues to provide a significant level of
activity with good visibility out to 2010 we
have seen an encouraging increase in repeat
business for regional industrial and local
authority clients including the award of a
framework with darlington mbc the ca
acquisition enhances our offering to the
water industry in the year ended
31 december 2007 ca recorded an
operating profit of £02m on a turnover of
£47m organic expansion of civil engineering
capabilities in the south west under the
britannia civil engineering brand has also
been achieved to enable access to regional
specialist water and environmental markets
50
0
specialist engineering 
20
24
15
2006 2007 2008
5
0
group operating margins 
15
10
2006 2007 2008
19

 of group revenue
annual report  accounts 2008
93035 renew ra 2008 text page 3
93035renewra2008textqxp93035renewra2008text  121208  1809  page 3 specialist building
social housing 
including the recent agreements with
sanctuary and hexagon housing
associations allenbuild now has eight
framework agreements in place all with
leading housing associations in the south
east of england for the delivery of their new
build programmes we secured £42m of new
projects during the year new projects
completed during the year include cranes
farm and clyde terrace each valued at over
£8m this business area is particularly well
secured for 2009 and our pipeline of future
projects for our existing framework partners
remains in excess of £100m
retail
britannia construction’s first project with
marks  spencer in manchester has been
completed four projects were completed for
tesco with another at wells in progress
allenbuild successfully completed a £26m
negotiated hotel and mixed retail
development at southport which included
hotel casino and retail outlets and
incorporated restoration works to the historic
floral hall
science and education
allenbuild has been appointed preferred
bidder on a £58m project to build the new
kirklees college waterfront project at
huddersfield and has successfully completed
the £18m rossington school project in
doncaster elsewhere walter lilly has
continued good progress on the £20m
queen mary innovation centre project in
london and has received awards for two
further projects from gsk together with a
£12m contract for eisai pharmaceuticals 
at hatfield
restoration and refurbishment
the highend residential sector remains busy
with a number of awards for walter lilly
giving good visibility for 2009 and beyond
five projects have now been successfully
completed under the grosvenor framework
with others being processed good progress
continued on the major contracts at
grosvenor crescent and regent’s park our
established relationship with cadogan
estates continues with a further project at
cadogan gardens 
yjli has been appointed to a five year lul
framework for tube network modernisations
during the year further modernisation works
were secured for ctrl platforms for south
eastern and for network rail at waterloo
where we are bringing a redundant eurostar
platform back into operational use
property and other activities
we have successfully developed and sold a
new factory in cumbria for the cumberland
pencil company but in light of recent market
conditions there are no current development
activities ongoing in the uk during the year
we completed and sold the applied research
facility in the usa for johns hopkins
university we continue to look to realise
value from our land assets in the us with our
portfolio particularly well located in maryland
predominantly in the baltimorewashington
corridor near to the fort meade national
security centre 
people
the health and safety of our people at work
is our priority at all times during the year we
achieved a further reduction in the accident
incidence rate which has now reduced by
57 over the last three years our target for
each of these years was a 10 reduction 
the group’s success derives from the quality
and skills of our people throughout the
group we have an excellent blend of
experience youth talent and ambition the
board has great confidence in our staff and
thanks them all for their commitment 
and effort
summary 
the group continues to make progress on
the implementation of its strategy despite the
prevailing economic environment our
specialist markets are resilient and this is
reflected in the quality of our forward 
order book
brian may
chief executive
25 november 2008
chief executive’s review 04
chief executive’s review
annual report  accounts 2008
93035 renew ra 2008 text page 4
93035renewra2008textqxp93035renewra2008text  121208  1809  page 4 financial review
results
the group’s revenue from ongoing
operations was £3906m 2007 £3481m
with an operating profit of £76m 
2007 £52m prior to exceptional items and
amortisation charges profit before income
tax was £67m 2007 £74m a tax charge
of £15m 2007 £01m resulted in a profit
after tax for the year of £53m 2007 £73m
accounting policies
the group was required to adopt
international financial reporting standards
“ifrs” in the year and so comparative
financial information has been restated
accordingly the impact of ifrs on previously
reported results is set out at the start of the
accounting policies section in note 1 of the
notes to the financial statements on pages
40 and 41 other than the changes required
by ifrs the group’s accounting policies
have remained consistent
cash generation
the group’s operating performance has 
been complemented by strong cash
generation and a growth in our net cash
balances of over 15 to £282m the
group’s only borrowings are £77000 of
finance leases and £110000 of overdraft
funding in lovell america inc 
treasury
whilst the group seeks to maximise the short
term interest returns on its cash we have
been mindful of the risk profiles of deposit
takers and our policy remains to deposit
funds only with aa rated institutions the
board approves the list of institutions with
which deposits are made on a regular basis
and applies its own experience and
judgement as to which institutions to use
over and above the credit rating
property 
the group has not realised any uk property
during the year as a result of the prevailing
market conditions the group has taken
advantage of those conditions to terminate
certain leasehold arrangements over
properties which were not being used by the
group for its construction activities 
lovell america inc
the group now has approximately £10m
2007 £12m of net assets in the usa where
lovell america inc is progressively realising
these assets for cash repatriation to the uk
during the year the development of the
applied research facility for johns hopkins
university was completed and sold 
pensions
the gross deficit in the lovell pension
scheme which was closed to new members
in 2000 has reduced to £15m 2007 £36m
as discount rates have risen 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 in
accordance with the scheme specific funding
requirements of the pensions act 2005 the
board has an agreement with the trustees 
of the scheme on the level of future
contributions which are currently £20m per
annum inclusive of costs this level of
contribution will be reviewed following the
next triennial valuation of the scheme which is
due to be carried out as at 31 march 2009 
taxation
a deferred tax asset included in noncurrent
assets of £41m 2007 £50m is carried in
the balance sheet which principally results
from the likely future utilisation of tax losses
through the improved and profitable trading
of the group the deferred tax asset related
to the defined benefit pension scheme has
reduced by £06m to £04m as a result of the
reduction in the gross scheme liability 
a prior year adjustment to current uk tax
payable of £04m has been recognised in the
current financial year following the disposal of
britannia joinery ltd together with £51000
of us current taxes payable the payable
current year uk tax charge is £159000 
this represents a 3 group tax payable rate
which rises to 22 when the prior year
adjustment and deferred tax impacts are
taken into account
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 £143m 2007 £100m an increase of
43 the distributable profits of renew
holdings plc stood at £55m 2007 £39m
providing the board with the platform to
propose an increase in the dividend for the
full year of 67 from 18p to 30p per share
the dividend cover stands at 29 times 
john samuel
group finance director
25 november 2008
05 financial review annual report  accounts 2008
93035 renew ra 2008 text page 5
93035renewra2008textqxp93035renewra2008text  121208  1809  page 5 specialist 
engineering
review of operations 06 annual report  accounts 2008
93035 renew ra 2008 text page 6
93035renewra2008textqxp93035renewra2008text  121208  1809  page 6 07 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 7
93035renewra2008textqxp93035renewra2008text  121208  1809  page 7 water
specialist 
engineering
value of annual
framework with
northumbrian water
£1 0m
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 sea
defences land reclamation urban renewal
and other infrastructure services  
a significant proportion of seymour’s work is
procured under longer term framework
agreements and negotiated contracts these
include a £10m per annum framework
agreement with northumbrian water which
has been extended until 2011
flood alleviation projects formed a major part
of seymour’s work during the year these
important schemes help to protect people
and property by rapidly dispersing rainwater
that falls during the increasingly frequent
heavy storms 
one of the largest schemes worth £23m
was in guisborough where 1500m of up to
1200mm diameter pipeline was installed in
the highway through residential areas in
darlington a £1m scheme involved the
installation of 600m of 1200mm diameter
pipeline together with a combined sewer
overflow cso and outfall similar projects
were also undertaken in penshaw shiney
row leamside billingham and gateshead
seymour also worked on a further six
separate cso projects which allows excess
rainwater to disperse while preventing the
discharge of solid waste in corbridge seven
csos and 200m of pipeline was installed
under a £1m contract 
a £900000 project at seaton burn
comprised the construction of 14 csos and
500m of pipeline other projects were carried
out in washington chesterlestreet
spennymoor billingham and 
stocktonontees
the company’s skills in flood relief were
recognised when the £35m shiremoor flood
relief project was highly commended in
three categories of the regional constructing
excellence awards and secured bronze in the
national considerate constructor awards
seymour’s capability in the water industry
was further enhanced with the acquisition of
ca pumps ltd with effect from 1 october
2008 ca is based in county durham but
operates nationally ca’s capabilities are
mechanical and electrical installation and
design pump sales and service steel
fabrication and health and safety consultancy
and training both companies will be able to
offer clients a full civil engineering and
mechanical and electrical package 
including design
seymour continued to play a leading role in
the urban regeneration of the region with a
number of important environmental contracts
for both local authorities and the private
sector these included the £5m shiremoor
bypass coastal protection projects for both
hartlepool borough council and
scarborough borough council and a first
contract for leeds city council
seymour
review of operations 08 annual report  accounts 2008
93035 renew ra 2008 text page 8
93035renewra2008textqxp93035renewra2008text  121208  1809  page 8 09 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 9
93035renewra2008textqxp93035renewra2008text  121208  1809  page 9 nuclear
specialist 
engineering
year presence of
shepley at sellafield
50
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 remained focused at
sellafield which continues to command the
significant majority of available funding within
the national civil nuclear legacy programme
and where shepley has worked continuously
for more than 50 years shepley is the largest
tier 2 mechanical and electrical contractor at
sellafield with a workforce in excess of 400
people across three businesses
shepley’s work is derived largely from four
framework agreements the largest
framework is the multi discipline site wide
agreement which comprises asset care
maintenance and support across a range of
complex operational plants within sellafield’s
controlled areas 
one major project in very challenging
radiological conditions within the high level
waste plant complex involved the removal of
redundant contaminated equipment together
with the installation of new pipework
steelwork and electrical systems shepley
was fully involved in the planning and
methodology development of the task which
included the use of a full size ‘mockup’ thus
enabling the entire team to develop and
practice the proposed methods of approach
from design through implementation to
testing and commissioning 
the decommissioning and demolition
framework agreements have recently 
been extended a whole range of
decommissioning challenges has been
delivered in the year covering aspects from
design and safety through to implementation
in june shepley secured a decommissioning
waste framework in partnership with
energysolutions this contract is associated
with the recovery and processing of low level
metal waste generated within the ongoing
decommissioning programme at both
sellafield and drigg
at capenhurst in cheshire shepley secured
its first contract for decommissioning the
establishment of a shepley presence on this
facility complements its presence at
springfields near preston where shepley
has been on site for more than 10 years
carrying out both decommissioning and
remediation works
all work is undertaken with the utmost regard
to safety and in april shepley gained a third
consecutive rospa president’s award
review of operations 10 annual report  accounts 2008
93035 renew ra 2008 text page 10
93035renewra2008textqxp93035renewra2008text  121208  1809  page 10 11 review of operations annual report  accounts 2008
© british nuclear group ltd 
93035 renew ra 2008 text page 11
93035renewra2008textqxp93035renewra2008text  121208  1809  page 11 93035 renew ra 2008 text page 12
land remediation
specialist 
engineering
remediation
projects undertaken
by vhe
500
vhe is a leading provider of land remediation
services with a varied public and private
sector client base the company has
extensive experience in reclaiming 
brownfield land and completed its 500th
remediation contract during the year 
vhe utilises inhouse designed and
developed solutions which apply innovative
and sustainable services such as specialist
biophysical treatment soil washing
solidification and stabilisation along with
groundwater treatment to maximise the
value of redundant land the company 
also adds value by enhanced recycling of
site won materials for reuse in 
development infrastructure
a growing sector of work is in the remediation
of contaminated land as determined by 
part iia of the environment act this act sets
out the regulatory framework for local
authorities to identify and deal with the
estimated 200000 hectares of land
contaminated during previous use during the
year vhe completed 5 projects including the
remediation of the front and rear gardens of
31 residential properties and public open
space in littleport cambridgeshire which had
been partly constructed on the site of a
former gas works residents remained in
occupation throughout the contract which
was completed in 16 weeks similar part iia
projects have also been undertaken in
warrington and pontesbury and a further
£21m project in renfrew involves the
remediation of land on 26 properties
constructed during the 1970s on a former 
gas works
the greater manchester passenger transport
executive appointed vhe to undertake
remediation works to enable the development
of the proposed new transport interchange in
rochdale town centre vhe’s work
comprised soil remediation by stabilisation
and the replacement of the existing river wall
with a sheet piled wall with masonry cladding
along the wall’s current alignment together
with improvements to the river walkway 
vhe utilises onsite validation technology
such as xray and ultraviolet fluorescence
xrf and uvf which reduces the need for
samples to be sent for laboratory analysis to
hasten the reclamation of contaminated sites
the technology has been used on a number
of schemes including the remediation of the
former bristol diesel depot for the south
west england regional development agency
a further major contract is the £15m
cudworth and west green bypass awarded
in november by barnsley mbc this is the
fifth major project that vhe has secured with
this client in recent years the 18month
programme comprises the construction of
52km of new single carriageway along with
rail and road overbridges
vhe continues to undertake work for
national grid property ltd to carry out
remediation works on its sites across the uk
under a framework agreement vhe has also
been appointed as a panel contractor on the
remade programme reclamation and
management of derelict land which has
been set up by lancashire county council in
partnership with the northwest regional
development agency 
review of operations 12 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1809  page 12 13 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 13
93035renewra2008textqxp93035renewra2008text  121208  1809  page 13 specialist 
building
review of operations 14 annual report  accounts 2008
93035 renew ra 2008 text page 14
93035renewra2008textqxp93035renewra2008text  121208  1809  page 14 15 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 15
93035renewra2008textqxp93035renewra2008text  121208  1809  page 15 93035 renew ra 2008 text page 16
social housing
specialist 
building
social housing
development 
pipeline 
£1 00m
new build social housing is delivered
principally in the south east through allenbuild
which has eight framework agreements with
major housing associations which is reflected
in a project pipeline in excess of £100m two
new frameworks have been secured during
the year with sanctuary housing association
and hexagon housing association
the company is involved in a number of
major projects the largest is a £185m urban
regeneration project for paddington
churchesgenesis housing group in bow’s
conservation area and comprises the
construction of several multistorey blocks to
accommodate 146 flats and ground floor
office space in woolwich three blocks are
being constructed to provide 74 flats in a
£11m contract for the same client also
underway is a £55m brownfield project for
community housing group in plaistow
which comprises the demolition and
decontamination of an existing petrol filling
station and construction of a life skills 
and turnaround centre with 23 
associated apartments
a further contract for paddington churches
involves the £10m construction of an eight
storey block consisting of 35 residential units
and 12 livework units with terraces and
balconies together with retail restaurant and
office use plus underground parking for 40
cars extensive use has been made of the
adjacent grand union canal to transport
excavated material and dramatically reduce
the number of lorry movements to the site 
a number of major schemes were completed
during the year these include 106
apartments in hackney in a £155m contract
for metropolitan housing trust and 50
apartments 10 livework units and seven
commercial units for london  quadrant
housing trust valued at £82m
one of the greatest innovations in recent
years has been the widespread adoption of
modern methods of construction mmc
these include factory made timber frames
lightweight steel frames and prefabricated
components such as bathroom pods mmc
also helps reduce dependency on 
site labour 
allenbuild has supply chain partnering
arrangements with mmc manufacturers
which helps reduce the project lead in times
mmc has contributed greatly to reducing
construction programmes as the
components are much quicker to erect than
traditional materials precast foundations
timber frames and bathroom pods have been
used on the £9m cranes farm road project
in basildon which will provide 60 affordable
housing units in a combination of flats
terraced and semidetached houses 
allenbuild is currently utilising mmc on eight
social housing projects where the use of post
tensioned reinforced concrete floors shortens
build time and significantly reduces the extent
of reinforcement and concrete required thus
lowering the carbon footprint in the
construction stages
review of operations 16 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1809  page 16 17 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 17
93035renewra2008textqxp93035renewra2008text  121208  1809  page 17 93035 renew ra 2008 text page 18
retail
specialist 
building
square feet of retail
space constructed
for tesco 
195000
during 2008 group companies undertook
a number of significant retail projects across
the uk encompassing new build and
refurbishment in both town centres and 
retail parks 
britannia continued its long association with
tesco which dates back to 1984 and now
encompasses approximately 100 contracts
new stores were constructed in maesteg
cullompton aston and ilminster totalling
more than 195000 sq ft 
britannia completed its first project for 
marks  spencer the £68m fitout of a
40000 sq ft extension to the trafford centre
in manchester 
smaller works included the £3m
pedestrianisation of the broadmead in bristol
as part of the cabot circus development for
the prudential also in bristol britannia
delivered the £15m food court alterations at
the giant mall shopping centre at cribbs
causeway retail centre
in wales britannia is working on a £56m
bq warehouse in newport and continued
annual improvement works to cwmbran 
town centre
on the leisure side of retail britannia
completed the fitout contract for a 12screen
facility at high wycombe for cineworld
following a similar project in didcot for the
same client 
retail and leisure schemes have formed a
central part of urban regeneration in
southport where allenbuild has recently
completed the £26m redevelopment of the
floral hall gardens site for neptune
developments the scheme included a
133 bed fourstar hotel and casino including
extended conference facilities for the nearby
historic floral hall which was also restored
within the contract 
nearby allenbuild completed the £9m
construction and fitout of the vincent hotel
the 60 bed hotel is the first “boutique” five
star hotel to be constructed in the town
allenbuild has also constructed the £56m
jasper square development in tunstall for
dransfield properties the design and build
project provides a new 45000 sq ft jjb
facility a carphone warehouse and a further
retail unit
review of operations 18 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1809  page 18 19 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 19
93035renewra2008textqxp93035renewra2008text  121208  1810  page 19 93035 renew ra 2008 text page 20
walter lilly continues to excel in the
restoration and refurbishment of high quality
residential properties in prime london
boroughs the company is especially skilled
in the transformation of historic or listed
buildings where extensive structural alteration
is often required
one of the most technically challenging
schemes is a £32m contract in grosvenor
crescent in belgravia to convert and refurbish
an unbroken crescentshaped terrace of
eight grade ll listed buildings into 17
essenzastyle lateral living apartments
the project includes an underground car
stacking system for 22 cars created in a
46 foot deep basement over three storeys
to construct the basement and provide
access to the rear of the site for a piling rig
a 52 foot long access passage was broken
through the building this involved the
approval of both grosvenor and english
heritage cutting a 13 foot square hole
dismantling the ground floor and three
staircases and identifying 300 numbered
components for eventual reinstatement
a £20m project in regent’s park comprises
the alteration and extensive refurbishment of
a grade ii listed private residence it includes
finishes to eight bathrooms fitting out of the
family kitchen and pantry and neoclassical
formal rooms throughout there are
exceptional joinery and fibrous plaster
finishes bespoke marble and hardwood
floors ornate bronze and mirrored panelling
surrounds the elevated deck swimming pool
enabling works are underway at a prestigious
private residence in mayfair as the first stage
of a proposed £35m refurbishment work is
also ongoing to fitout a number of
apartments and penthouses in manresa
road in kensington and chelsea
frameworks with london’s leading estates
continued with a £8m mixed use scheme
being constructed in cadogan gardens for
cadogan estates grosvenor also awarded
five projects totalling £74m principally for
residential schemes
in the rail sector yjl infrastructure completed
a train servicing depot for network rail at
tonbridge a station upgrade for cgl rail at
cutty sark and a further phase of station
cooling works for london underground on
the central and circle lines the company
was also selected for a five year framework
for london underground
allenbuild completed the £5m redevelopment
and extension of the grade ii listed wood
end museum in scarborough the scheme
includes a mix of studios gallery areas
workspace educational and learning
resources exhibition and storage space
additionally allenbuild completed over £7m of
restoration and expansion works at the
reform club in pall mall london and at the
victoria and albert museum in kensington
notable iron restoration projects included the
peach house at the president’s residence in
phoenix park dublin and on the outskirts of
belfast the historically significant iron
conservatory at ballywalter house for baron
dunleath walter lilly is working on the £18m
restoration of the 13000 sq ft grade i listed
conservatory at chiswick house for client
english heritage
restoration and refurbishment
specialist 
building
foot depth of three
storey basement
constructed 
in belgravia
46
review of operations 20 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 20 21 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 21
93035renewra2008textqxp93035renewra2008text  121208  1810  page 21 93035 renew ra 2008 text page 22
science and education
specialist 
building
item capacity of the
british library
archive
7000000
group companies enjoyed significant
success with a wide range of science and
education projects
allenbuild has delivered a “world first” project
for the british library a £22m fully automated
archival facility in yorkshire the blasp
project features the world’s first use of
oxygen depletion as a fire prevention
strategy in an airtight archive which will
accommodate up to seven million items on
262 linear kilometres of steel racking
following the success of this project
allenbuild is now able to offer a tried and
tested airtight solution which can provide a
‘fire free’ environment for clients wanting to
store valuable volatile or perishable goods
or indeed safeguard expensive process
equipment or technology
one of the largest schemes under
construction during the year was the 
108000 sq ft rossington all saints church
of england school for the diocese of
sheffield constructed within the grounds of
the existing school in doncaster the £18m
project also includes a modern sports village
allenbuild has also been selected as
preferred bidder for the £58m kirklees
college waterfront project in huddersfield
the stateoftheart campus will provide
approximately 300000 sq ft of new
accommodation for the college work is
expected to commence in the summer of
2009 and continue until 2011 preferred
bidder status has also been achieved with
st helens mbc for the provision of a new
specialist secure teaching facility at red bank
school in wigan the company has just
successfully completed its first contract with
wigan mbc under the council’s education
framework whilst in manchester allenbuild is
in the second year of the framework
agreement with salford city council 
other education projects undertaken by
allenbuild include the new £7m kingfisher
primary school in solihull and the completion
of the £26m arts and creative media building
at midcheshire college in northwich
many of walter lilly’s science projects are
delivered under frameworks the company
completed its eighth year on defra’s
veterinary laboratory agency framework as
well as securing the £54m award of a
specialist stores building walter lilly has
carried out numerous projects for
glaxosmithkline spanning more than 20
years the works have included category ii
and iii laboratories gmp manufacturing
areas and clean rooms along with offices
packaging and other facilities the most
recent project being a £71m laboratory
refurbishment at ware a further significant
award in the year was a £124m laboratory
fitout for eisai pharmaceuticals in hatfield
walter lilly is also the design and build
contractor for the £21m queen mary
bioenterprises innovation centre in
whitechapel which will provided science
based incubator premises work continued
on walter lilly’s imperial college framework
with the £63m fitout of the burlington 
danes laboratory on their hammersmith
hospital campus
at westonbirt school near tetbury britannia
completed the £11m construction of a new
twostorey vl form accommodation block in
natural materials to blend in with the
surrounding cotswold stone buildings the
project was undertaken in a live school
environment and included a twobedroom
apartment on the ground floor together with
associated landscaping and external works
review of operations 22 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 22 23 review of operations annual report  accounts 2008
93035 renew ra 2008 text page 23
93035renewra2008textqxp93035renewra2008text  121208  1810  page 23 93035 renew ra 2008 text page 24
renew holdings plc and its subsidiaries
make every effort to minimise the impact and
to maximise the social economic and
environmental benefits of their operations
beyond compliance with minimum legal
requirements the group continues to build
on the achievements of previous years and
develop corporate social responsibility
initiatives that reflect the diverse operations of
each specialist business
safety
the safety of the group’s employees sub
contractors and all who come into contact
with its operations is paramount safety
forms one of the group’s key performance
indicators and is measured in the accident
incidence rate in which the group has
achieved a 57 reduction in the last three
years against a year on year target of 10
the safety report is the first item on every
agenda at all group or subsidiary board
meetings some businesses such as
shepley work in the most highly regulated
safety environments in the world during the
year shepley received a third consecutive
rospa president’ s award while pps gained
a fourth consecutive rospa gold medal and
first prize in the annual sellafield resident
engineers presentations for ‘the company’s
commitment and leadership in its health and
safety programme’ 
environment
renew intends that all group companies
should achieve iso14001 the environmental
management standard and a programme is
in place to gain this accreditation vhe
continues to promote the use of recycling
and on site treatment of contaminated
materials where appropriate the company is
also actively working with local authorities
across the country to remediate historically
contaminated land on which residential
properties have been built 
in order to dramatically reduce the number of
vehicle movements to site allenbuild utilised
the grand union canal in london to transfer
excavated material from a £10m housing
project in kilburn around 12000m
3
of soil
was moved on barges to a waste transfer
station for recycling the development also
makes extensive use of dry construction
eliminating the waste such as surplus sand
and cement arising from wet construction
sustainability 
all renew businesses are committed to
increasing the procurement of sustainable
products and reducing construction waste
timber frames were used exclusively on a
£9m development of 60 homes in basildon
allenbuild has secured the sustainable
procurement support package from action
sustainability to further embed sustainable
procurement into business culture the
company was also one of the first to sign up
to the buy recycled code
considerate constructors scheme
all group companies are active participants
in the considerate constructors scheme with
walter lilly and seymour each winning
bronze awards all projects are required to
register with the scheme and scores are
reported and monitored at board meetings
a minimum target score of 265 has been set
for each inspection with the group averaging
a score of 318 in 2008
employment and training
allenbuild maintained sponsorship of the all
hallows rc business and enterprise college
construction centre in salford which delivers
btec diplomas to years 10 and 11 the
success of this scheme has prompted
discussion with three schools in the 
maghull area
allenbuild has recently signed up to help
deliver the salford youthbuild scheme a
charitable programme run by nch helping
disadvantaged young people into work within
the construction industry through work
placements and skills training the
programme offers an initial 8 week placement
after which there is an option for an extended
26 week programme of support
corporate social responsibility
corporate social responsibility 24 annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 24 corporate social responsibility
25 corporate social responsibility
shepley has a thriving apprenticeship
programme which currently supports 25 craft
apprentices at various stages of development
and this year joined the arkwright scholarship
scheme which assists those seeking a career
in mechanical or electrical engineering
energy saving and carbon footprint
vhe has continued to investigate the
potential for alternative energy supplies for
small or remote site establishments and has
invested in an inverter which allows storage
of electricity provided by generators during
the day to supply via batteries noise free
power overnight solar powered welfare
facilities have also been trialled for use
alternative power schemes have been installed
on a number of projects such as alltwen
hospital in north wales which incorporates
biomass boilers that burn wood pellets
britannia is also involved in a biomass heating
system for new star college in cheltenham
allenbuild is constructing the innovative
environmental energy technology centre
eetc at the advanced manufacturing park
in waverley for yorkshire forward the entire
project aims to be zero carbon and have the
lowest carbon footprint in the uk it will be
heated by a network of pipes set into the 
concrete supplied by water from bore holes 
electricity will come from a 225kw wind
turbine at the edge of the site attached to an
electrolysis unit which will convert some of
the wind energy into hydrogen 
community engagement
at st mark’s field in rochford allenbuild
worked with the local youth project
“footprints” to decorate the site hoardings
all of vhe’s part iia projects involve working
around occupied residential properties and
the scheme in yarm on teesside won a
national award for best community
stakeholder engagement
charitable giving
group companies and their employees
undertake a wide range of charitable work
the group prefers to support local charities
or those with which our employees are
personally engaged among the many
activities walter lilly supported genes for
jeans day allenbuild participated in the
manchester dragon boat race for the
construction sector charity crash and vhe
took part in a 10km road race for the
yorkshire air ambulance society “team
allenbuild” comprising 27 employees cycled
for 100km to raise funds for the wigan 
leigh hospice and the queenscourt hospice
in southport other charities supported
during the year included ilkley candlelighters
climb the hospital heartbeat appeal and
the jane tomlinson appeal
annual report  accounts 2008
93035 renew ra 2008 text page 25
93035renewra2008textqxp93035renewra2008text  121208  1810  page 25 93035 renew ra 2008 text page 26
the directors present their report and the audited 
accounts for the year ended 30 september 2008
principal activities
for the year ended 30 september 2008 the principal activity
of the group was in construction and construction related
activities the main construction activities are carried out in
the united kingdom with some development activities in the
usa more details of these activities the year’s trading and
future developments are contained in the chairman’s
statement the chief executive’s review the review of
operations and the financial review a list of the principal
operating subsidiaries of the group as at 30 september
2008 appears on page 73
international financial reporting standards ifrs
the group is obliged to comply with ifrs for the first time in
preparing these financial statements a reconciliation of the
financial position as at 30 september 2007 as previously
reported under uk gaap and the revised position under
ifrs is given within note 1 to the financial statements on
pages 40 to 42
results and dividends
the group profit for the year was £5260000 
2007 £7320000 the directors recommend the payment
of a final dividend on ordinary shares of 20p 2007 12p
giving a total for the year of 30p 2007 18p
business review
information that fulfils the business review requirements
applicable to the company can be found in this report the
chief executive’s review and the review of operations and 
is incorporated into this report by cross reference
acquisitions and disposals
the group made no acquisitions in the year details of the
acquisition by the group of c a pumps limited which
took effect on 1 october 2008 are included in the chief
executive’s review on 13 november 2007 the group
disposed of its interest in britannia joinery limited
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 income tax which 
is set prior to exceptional costs and amortisation charges 
as a percentage of revenue is a mediumterm target which
the directors are aiming to achieve within two 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 
directors’ report 26
directors’ report
06
30
22
26
18
14
10
2010 2007 2008 2006
15
25
1
actual
target
19
operating profit as a percentage of revenue
64

65
66
67
68
69
70
71
72
73
74
75
76
77
78
2006 2007 2008
target 66
actual 77
target 66
actual 72
target 66
actual 69
percentage of orders from repeat clients

2006 2007 2008
62
64
66
68
70
72
74
76
78
80
82
84
target 66 target 66
actual 79
target 66
actual 83
actual 78
percentage of orders in specialist sectors

2006 2007 2008
05
10
15
20
25
30
35
40
45
50
55
65
60
target 10
actual 19 target 19
actual 52
target 27
actual 57
cumulative improvement in accident incidence rate
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 26 93035 renew ra 2008 text page 27
27 directors’ report
directors’ report
principal risks and uncertainties
this annual report contains certain forward looking
statements these statements are made by the directors in
good faith based on the information available to them up to
the time of approval of this report actual results may differ
to those expressed in such statements depending on a
variety of factors these factors include customer
acceptance of the group’s services levels of demand in the
market restrictions to market access competitive pressure
on pricing or additional costs failure to retain or recruit key
personnel and overall economic conditions
a risk inherent in the construction industry occurs in the
nature timing and contractual conditions which exist at the
time of contract procurement to mitigate these risks the
group has a system of precontract and pretender risk
assessment whereby senior management including the
executive directors where appropriate review and advise on
specific issues arising in the contract procurement process
the group also seeks to limit its risks by specialising in
certain markets where it has extensive experience and a
particular skills base
derivatives and other financial instruments
the group’s principal financial instruments comprise bank
loans cash and shortterm deposits and obligations under
finance leases the main purpose of these financial
instruments is to provide finance for the group’s operations
the group has various other financial instruments such as
trade 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 dollars at floating rates of interest
under the terms of loan facilities with barclays bank plc
interest rates are linked to the bank’s prime us dollar lending
rate hence enabling the group to track market interest rates
interest bearing assets comprise cash and bank deposits
and earn interest at floating rates
liquidity risk
the group’s policy is to ensure availability of operating funds
by maintaining an appropriate cash balance in both current
and deposit accounts and to establish appropriate levels of
borrowing facilities to provide shortterm flexibility
foreign currency risk
as a result of the investment in operations in the united
states movements in the us dollarsterling exchange rate
could materially affect the group’s and the company’s
balance sheet the company seeks to limit the effect of this
currency exposure by using foreign currency borrowings to
hedge the debt due to it by its us subsidiary against
currency depreciation the principal hedging instrument
used by the group is a 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 us35m by the receipt of funds from the us in
the intervening period as at 30 september 2008
£10212000 2007 £11575000 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
payment of creditors
the group recognises the importance of good relationships
with its suppliers and subcontractors and has established
the following payment policy
a agree payment terms in advance of any commitment
being entered into
b ensure suppliers are made aware of these terms by
inclusion of the terms of payment on the order or
contract and
c ensure that payments are made in accordance with
the terms of the contract or order providing that the
presented documentation is complete and accurate
the company’s average creditor days during the year were
32 days 2007 37 days
donations
charitable donations made by the group during the year
amounted to £34592 2007 £26948 
the group made no political donations during the year
2007 £nil
employees
the directors recognise the need for communication with
employees at every level all employees have access to a
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 27 93035 renew ra 2008 text page 28
copy of the annual report and accounts which together
with staff briefings internal noticeboard statements 
and newsletters keeps them informed of the group’s
progress the directors are actively considering ways to
increase further the involvement of employees in the 
group’s performance
the group continues to be committed to the health safety
and welfare of its employees and to observe the terms of the
health  safety at work act 1974 and all other relevant
regulatory and legislative requirements
it is the policy of the group that there shall be no
discrimination or less favourable treatment of employees
workers or job applicants in respect of race colour ethnic or
national origins religious beliefs sex sexual orientation
disability political beliefs age or marital status full
consideration will be given to suitable applications for
employment from disabled persons where they have the
necessary abilities and skills for that position and wherever
possible to retrain employees who become disabled so that
they can continue their employment in another position
renew and its subsidiaries engage promote and train staff
on the basis of their capabilities qualifications and
experience without discrimination giving all employees an
equal opportunity to progress within the group
health and safety management
brian may continues as the designated board director 
of health and safety with group responsibility for safety 
and environmental management health safety and
environmental management issues and reports are regularly
reviewed at group board meetings with the head of
department in attendance when necessary
the executive management committee chaired by the chief
executive discusses and progresses policy legislative
changes best practice training needs inspections audits
internal and external performance measurement and
statistical information all topics are discussed with a specific
focus on improvement 
control at business level remains with subsidiary managing
directors who are required to appoint a director who is
responsible for safety and environmental matters both safety
and environmental issues are discussed as the first agenda
item at monthly board meetings each business safety and
environmental meeting encourages open communication
between all employees and is a key part of the group’s
efforts to gather and disseminate good practice for inclusion
in businessbased management systems minimum safety
and environmental standards are contained within bespoke
business safety and environmental management systems
this system is based on group activities and provides
specific standards procedures information forms and
advice which accommodates changes in legislation expected
during the coming financial year management advice is
provided by the group health safety and environmental
department consisting of the group health safety and
environmental director an administrator and six group
safety and environmental advisors
certain group companies employ their own specialist
advisors who liaise directly with the group hse director on
common issues the group maintains its membership with
the royal society for the prevention of accidents rospa
and locallybased construction safety groups all safety and
environmental department personnel hold membership with
the institution of occupational safety and health iosh
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 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 2008
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 5 per annum
against this taxing target the group actually achieved an
85 reduction
corporate social responsibility and the environment
the group’s corporate social responsibility report which
includes its report on the environment is on pages 24 to 25
directors
the directors of the company who served throughout the
year and brief biographical details are set out below 
nonexecutive directors
john bishop  director 63 was appointed to the board as
a nonexecutive director in october 2006 he is a chartered
accountant with over 20 years plc experience at main
board level before retiring in 2005 john spent 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
directors’ report 28
directors’ report
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 28 93035 renew ra 2008 text page 29
29 directors’ report
directors’ report
roy harrison obe  director 61 was appointed to the
board as a nonexecutive director in november 2003
subsequently he was appointed executive chairman in
march 2004 reverting to nonexecutive chairman with effect
from 1 october 2005 he is a former chief executive of the
tarmac group senior independent director of bss group
plc and has a number of investing director positions in
private construction materials companies he is governor
and chairman of a number of city academies
executive directors
brian may  director 57 was 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 52 joined the board in may 2006
as group finance director he was previously group finance
director at filtronic plc from 1991 until 2004 and
subsequently chief financial officer of zetex plc from july
2004 until february 2006 he qualified as a chartered
accountant in 1981 with deloitte haskins and sells before
serving as a partner with baker tilly from 1987 until 1991 
an organogram with the directors’ areas of responsibility can
be found on the company’s website wwwrenewholdingscom
john bishop will retire by rotation at the 2009 annual
general meeting “agm” and will offer himself for
reappointment the board recommends the reappointment
of john bishop as it is considered that he brings
considerable management financial and related commercial
experience to the group’s business
the articles of association provide that each director shall 
be indemnified by the company against losses costs and
expenses he may sustain or incur in connection with the
performance of his duties of office to the fullest extent
permitted by law the company has purchased and
maintained throughout the year directors’ and officers’ liability
insurance in respect of its directors
directors’ interests
the beneficial interests of the directors and their immediate
family members in the shares of the company and options
for shares are set out on page 32 no director has any
interest in any other group company details of the directors’
remuneration and service contracts appear on pages 
30 to 32
disclosable interests
as at the date of this report the company has been notified
of the following disclosable interests in the voting rights of 
the company
share capital
as at the date of this report the total number of shares in
issue being ordinary shares of 10p each is 59898927 
during the year the company has not bought back any of its
own shares nor issued any new share capital
disclosure of information to auditors
the directors who held office at the date of approval of this
directors’ report confirm the following
� so far as each director is aware there is no relevant 
audit information of which the group’s auditors are
unaware and
� each director has taken all the steps that he ought to
have taken as a director in order to make himself aware
of any relevant audit information and to establish that the
group’s auditors are aware of that information
auditors
resolutions will be proposed at the forthcoming agm to 
reappoint kpmg audit plc as auditors to the group and to
authorise the directors to determine their remuneration
approval
the board approved the report of the directors on 
25 november 2008
by order of the board
ben feather 
group solicitor and company secretary
25 november 2008
number of percentage of 
ordinary shares issued share 
capital
gartmore investment limited 8477691 1415
octopus investments 
nominees limited 4830510 806
johan claesson and 
connected parties 3930723 656
jpmorgan asset management 
uk limited 3193375 533
rensburg sheppards investment 
management limited 2467820 412
g merrett 2323250 388
ruffer llp 2262850 378
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 29 93035 renew ra 2008 text page 30
the directors present the directors’ remuneration report
the “remuneration report” for the financial year ended 
30 september 2008
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
three 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
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 and payments made on
termination are fair to the individual and the company
and that failure is not rewarded 
nonexecutive directors do not have any personal interest in
the matters to be decided by the committee other than as
shareholders nor any potential conflicts of interest arising
from crossdirectorships and no daytoday involvement in
the running of the company the executive directors and
other senior personnel may be invited to attend meetings
when appropriate to provide advice however no director 
is present or takes part in discussions concerning his 
own remuneration
remuneration policy
the company’s remuneration policy is that the remuneration
package of the executive directors should be sufficiently
competitive to attract retain and motivate directors to
achieve the company’s objectives without making excessive
payments the remuneration and employment terms of the
executive directors are determined by the committee by
comparison with salaries paid and terms agreed with
directors in similar companies in the same sector and of a
similar size and after a review of the performance of 
the individual
it is the aim of the committee to reward executive directors
competitively and on the broad principle that they should be
in the range of median to upperquartile of remuneration paid
to senior management of comparable public companies for
guidance the committee refers to published survey data
the board determines the terms and conditions of non
executive directors 
there are four main elements to the remuneration packages
of the executive directors and other senior executives
� basic salary including benefits
� annual bonus awards
� share option plans and
� pension arrangements
basic salary
basic salaries are reviewed annually by the board in its
capacity as remuneration committee and increased where
the committee believes that adjustments are appropriate to
reflect performance increased responsibilities andor 
market conditions
other benefits for executive directors include car allowances
and certain medical cover for the director and immediate
family the company also has a permanent health insurance
policy to provide cover for the executive directors
annual bonus awards
the company provides a bonus incentive scheme for
directors and senior executives of the operating companies
linked to the performance of the business for which they are
responsible all performance criteria are subject to approval
by the remuneration committee before payment is made
directors’ remuneration report 30
directors’ remuneration report
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 30 93035 renew ra 2008 text page 31
31 directors’ remuneration report
directors’ remuneration report
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
417960 options were granted under the 2004 esos to the
executive directors there are 1284196 other options
outstanding under the scheme 
the renew savings related share option scheme the
“renew saye” was also approved at the egm on 11 march
2004 there are no options outstanding under this scheme
the company’s policy to grant options or awards under the
above schemes is at the remuneration committee’s
discretion as and when considered appropriate
pension arrangements
until 1 april 2008 the group provided retirement benefits to
employees through independent pension schemes the
assets of these schemes are held by trustees and managed
by independent investment managers on 1 april 2008 the
principal such scheme the renew holdings retirement
benefits scheme commenced winding up and the group
established individual stakeholder plans for each member
into which the group continues to make contributions
messrs may and samuel are not members of these
schemes and receive salary in lieu of pension contributions
from the company
the retirement age of the executive directors under the
current articles of association of the company is 65 this
restriction is removed in the revised articles of association
being proposed for adoption at the forthcoming agm 
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 12
month 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 nonexecutive directors are not
eligible for bonuses pension benefits share options or other
benefits the letters of appointment do not contain a
provision for termination payments the directors are
indemnified to the full extent permitted by statute under the
articles of association
the service contracts and letters of appointment of the
directors who served during the year ended 30 september
2008 include the following terms
directors executive letter of appointment date of letter unexpired terms notice period 
nonexecutive or contract or contract months months
j bishop nonexecutive letter 4 october 2006 12 1
r harrison nonexecutive letter 7 october 2005 rolling one month 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
2008 2007 
£000 £000 £000 £000 £000
executive directors
b may 1234 273 203 56 532 446
j samuel 1234 210 156 43 409 288
941 734
nonexecutive directors
r harrison 53   53 50
j bishop 28   28 27
a wagner 5   2
1022 813
notes
1 the highest paid director for 2008 and 2007 was b may who received emoluments of £532000 2007 £446000 
2 benefits include car allowances and certain medical cover for the director and immediate family
3 messrs may and samuel received payments in lieu of company pension contributions which are paid through payroll
and taxed as salary and are included in benefits above
4 the bonuses paid to messrs may and samuel during the financial year included in the table above were in respect of
the year ended 30 september 2007
5 a wagner resigned on 31 october 2006
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 31 93035 renew ra 2008 text page 32
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
2008 was 755p and the range of market prices during the year was between 745p and 115p
information is provided below for directors who served during the financial year and as at 30 september 2008
2008 award 2007 award 2006 award cumulative total
30 september 1 october
2008 2007
b may 265048 331210 476190 1072448 807400
j samuel 152912 191082 285714 629708 476796
date of award 3 december 2007 8 january 2007 7 june 2006
exercise price £ 103 0785 0525
earliest exercise date 3 december 2010 8 january 2010 7 june 2009
expiry of exercise period 3 december 2017 8 january 2017 7 june 2016
performance criteria for the vesting of the share options is set out on page 59 in note 20 to the financial statements
directors’ share interests
those directors serving at the end of the year and their immediate families had interests in the share capital of the company
at 30 september 2008 as follows
ordinary shares of £010 each
30 september 2008 30 september 2007
j bishop 10000 10000
r harrison 60000 60000
b may 155000 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 25 november 2008 and signed on its behalf by
roy harrison obe
chairman
25 november 2008
directors’ remuneration report 32 annual report  accounts 2008
directors’ remuneration report
93035renewra2008textqxp93035renewra2008text  121208  1810  page 32 93035 renew ra 2008 text page 33
33 annual report  accounts 2008 corporate governance
as an aim listed company renew is not required to follow
the provisions of the combined code as set out in the
financial services authority’s listing rules the directors
however recognise the importance of and accordingly
support the principles of good corporate governance as
contained within the combined code the directors normally
seek to follow the code to the extent considered relevant for
an aim listed company but have been unable to achieve
compliance with the code in a number of areas this year
primarily because of the lack of independent nonexecutive
directors these matters are explained in further detail in the
sections below
the board of directors
the board currently comprises the chief executive the
nonexecutive chairman one executive director and one
independent nonexecutive director brief biographies of the
directors are given on pages 28 and 29
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
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 nine 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 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 combined code 2003 following the
resignation of a wagner j bishop was appointed and is now
the sole independent nonexecutive director 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 30 to 32 
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 one meeting 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 three 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 interim statement the preliminary announcement and
accounting policies 
corporate governance
93035renewra2008textqxp93035renewra2008text  121208  1810  page 33 93035 renew ra 2008 text page 34
corporate governance 34
the general purposes committee is constituted by the 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 2008 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
and a clear organisational structure within which individuals’
responsibilities are identified and monitored these results and
processes are monitored updated reviewed and considered
by the board the group has established a series of
minimum standards in a number of financial and operational
areas with which each business within the group must
comply group management monitors and reviews
compliance with these requirements on a periodic basis due
to the size and nature of the group the board does not
consider that a separate internal audit function is necessary
however during 2008 the group commenced a programme
of internal audit conducted by the group commercial director
and by members of the various subsidiaries’ finance teams
this system of peer review promotes best practice as well as
ensuring that group minimum requirements as to procedures
and internal controls are being complied with the reports
from these internal audits are made available both to the
board and to the external auditors
going concern
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 provide that each director or
other officer or auditor of the company shall be indemnified
by the company against losses costs and expenses he may
sustain or incur in connection with the performance of his
duties of office to the fullest extent permitted by law
shareholder relationships
members of the board have dialogue with individual
shareholders during the year in addition to the annual and
interim report and accounts the chairman addresses
shareholders at the agm and invites questions to any
members of the board 
the agm is normally attended by all directors and provides
an opportunity for communication with those shareholders
attending notice of the agm is given to shareholders at
least 21 days in advance and separate resolutions are
proposed on each substantially separate issue where
resolutions at the agm are dealt with by show of hands the
results of proxy votes for and against are still announced 
financial and other information about the group is available
on the company’s website wwwrenewholdingscom from
which shareholders can also access their shareholding
details via a link to the website of capita registrars plc
annual general meeting
the agm will be held on 28 january 2009 the notice for
which is set out on page 76 the notice contains special
business including the adoption of new articles of
association and the renewal of the board’s power to allot
equity shares brief details of the purpose and effect of the
proposed resolutions are set out in the notice of agm and
the notes thereto on pages 76 to 79 
shareholders should complete the proxy form accompanying
this document in accordance with the notes contained in the
notice of agm
approval
the board approved the corporate governance report on
25 november 2008
by order of the board
ben feather 
group solicitor and company secretary
25 november 2008
corporate governance
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 34 93035 renew ra 2008 text page 35
35 statement of directors’ responsibilities
the directors are responsible for preparing the annual
report and the group and parent company financial
statements in accordance with applicable law 
and regulations 
company law requires the directors to prepare group and
parent company financial statements for each financial year
as required by the aim rules of the london stock
exchange they are required to prepare the group financial
statements in accordance with ifrss as adopted by the eu
and applicable law and have elected to prepare the parent
company financial statements in accordance with uk
accounting standards and applicable law uk generally
accepted accounting practice 
the group financial statements are required by law and
ifrss as adopted by the eu to present fairly the financial
position and the performance of the group the companies
act 1985 provides in relation to such financial statements
that references in the relevant part of that act to financial
statements giving a true and fair view are references to their
achieving a fair presentation 
the parent company financial statements are required by law
to give a true and fair view of the state of affairs of the 
parent company 
in preparing each of the group and parent company financial
statements the directors are required to 
� select suitable accounting policies and then apply 
them consistently 
� make judgments and estimates that are reasonable 
and prudent 
� for the group financial statements state whether they
have been prepared in accordance with ifrss as
adopted by the eu 
� for the parent company financial statements state
whether applicable uk accounting standards have been
followed subject to any material departures disclosed
and explained in the financial statements and 
� prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
group and the parent company will continue in business
the directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time
the financial position of the 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 legislation in the uk governing
the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions
statement of directors’ responsibilities
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 35 93035 renew ra 2008 text page 36
independent auditors’ report to the members of renew holdings plc 36
we have audited the group and parent company financial
statements the “financial statements” of renew holdings
plc for the year ended 30 september 2008 which comprise
the group income statement the group statement of
recognised income and expense the group and parent
company balance sheets the group cash flow statement
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 group financial statements in accordance
with applicable law and international financial reporting
standards ifrss as adopted by the eu and for preparing
the parent company 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 35 
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 whether the financial
statements have been properly prepared in accordance with
the companies act 1985 we also report to you whether in
our opinion the information given in the directors’ report is
consistent with the financial statements the information
given in the directors’ report includes that specific
information presented in the chief executive’s review and
chairman’s statement that is cross referred from the
business review 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 group financial statements give a true and fair view
in accordance with ifrss as adopted by the eu of the
state of the group’s affairs as at 30 september 2008 and
of its profit for the year then ended 
� the parent company financial statements give a true and
fair view in accordance with uk generally accepted
accounting practice of the state of the parent
company’s affairs as at 30 september 2008 
� 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
registered auditor
25 november 2008 
independent auditors’ report to the members of renew holdings plc
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 36 37
93035 renew ra 2008 text page 37
group income statement
for the year ended 30 september 2008
note before exceptional
exceptional items and
items and amortisation
amortisation of intangible
of intangible assets
assets see note 3 total total
2008 2008 2008 2007
£000 £000 £000 £000
profit for the year attributable to equity holders of the parent company 5260 7320
exchange movement in reserves 574 150
movement in actuarial deficit 25 497 1804
movement on deferred tax relating to the defined benefit pension scheme 116 427
total recognised income and expense for the year attributable to
equity holders of the parent company 5453 5793
note total total
2008 2007
£000 £000
group statement of recognised income and expense
for the year ended 30 september 2008
group revenue from continuing activities 2 390557  390557 348149
cost of sales 347820  347820 311486
gross profit 42737  42737 36663
administrative expenses 35137 2765 37902 31445
operating profit 3 7600 2765 4835 5218
finance income 1618  1618 2199
finance costs 4 254  254 768
other finance income  defined benefit pension scheme 4 543  543 745
profit before income tax 9507 2765 6742 7394
income tax expense 6 2209 727 1482 74
profit for the year attributable to equity holders 
of the parent company 7298 2038 5260 7320
basic earnings per share 8 878p 1222p
diluted earnings per share 8 855p 1199p
group income statement annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 37 38
93035 renew ra 2008 text page 38
group balance sheet
at 30 september 2008
noncurrent assets
intangible assets  goodwill 9 8548 8516
 other 9 620 868
property plant and equipment 10 4503 5188
deferred tax assets 6 4069 4987
17740 19559
current assets
inventories 11 6367 6391
trade and other receivables 12 87766 89669
current tax assets 455 
cash and cash equivalents 14 28289 24565
122877 120625
total assets 140617 140184
noncurrent liabilities
obligations under finance leases 17 10 118
retirement benefit obligations 25 1479 3559
deferred tax liabilities 6 256 418
provisions 18 1068 1172
2813 5267
current liabilities
borrowings 16 110 165
trade and other payables 15 119246 121304
obligations under finance leases 17 67 429
current tax liabilities 159 480
provisions 18 3941 2530
123523 124908
total liabilities 126336 130175
net assets 14281 10009
share capital 20 5990 5990
share premium account 21 5893 5893
capital redemption reserve 21 3896 3896
cumulative translation reserve 21 424 150
share based payments reserve 21 233 97
retained earnings 21 2155 5717
total equity 22 14281 10009
approved by the board and signed on its behalf by
r harrison obe
chairman
25 november 2008
note 2008 2007
£000 £000
group balance sheet annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 38 39
group cash flow statement
for the year ended 30 september 2008
profit for the year 5260 7320
amortisation of intangible assets 248 41
depreciation 1708 1326
profit on sale of property plant and equipment 262 85
decrease in inventories 716 11909
decreaseincrease in receivables 2405 1766
decreaseincrease in payables 1599 6360
current service cost in respect of defined benefit pension scheme 72 79
cash contribution to defined benefit pension scheme 2106 1534
expense in respect of share options 136 97
financial income 2161 2944
financial expenses 254 768
interest paid 254 768
income taxes paid 1344 107
income tax expense 1482 74
net cash inflow from operating activities 4555 20770
investing activities
interest received 1618 2199
proceeds on disposal of property plant and equipment 1267 309
purchases of property plant and equipment 2028 1060
acquisition of subsidiary net of cash acquired 32 5932
net cash inflowoutflow from investing activities 825 4484
financing activities
dividends paid 1317 839
repayments of obligations under finance leases 470 542
repayment of development loans  9795
net cash outflow from financing activities 1787 11176
net increase in cash and cash equivalents 3593 5110
cash and cash equivalents at beginning of year 24400 19570
effect of foreign exchange rate changes on cash and cash equivalents 186 280
cash and cash equivalents at end of year 28179 24400
bank balances and cash 28289 24565
bank overdrafts 110 165
28179 24400
total total
2008 2007
£000 £000
93035 renew ra 2008 text page 39
group cash flow statement annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 39 notes to the accounts 40
93035 renew ra 2008 text page 40
explanatory note on adoption of ifrs for the year
ended 30 september 2007
a1 presentation of consolidated financial statements
the consolidated financial statements have been prepared
in accordance with the international financial reporting
standards ifrs as adopted by the eu “adopted ifrs”
the financial statements are presented in sterling since this
is the currency in which the majority of the group’s
transactions are denominated
a2 firsttime adoption of international financial
reporting and accounting standards
the group has applied ifrs 1 “first time adoption of
international financial reporting standards” to provide a
starting point for reporting under ifrs the date of
transition to adopted ifrs was 1 october 2006 and all
comparative information in these financial statements has
been restated to reflect the group’s adoption of ifrs
the adoption of ifrs has resulted in the following transition
adjustments to the group’s accounting policies from its
former basis of accounting “uk gaap”
goodwill
under uk gaap goodwill was amortised over its useful
economic life under ifrs 3 “business combinations”
goodwill is not amortised but is carried at cost with
impairment reviews being undertaken annually or when
there is an indication that the carrying value has been
reduced under ifrs 1 the group has applied the change
from the date of transition as opposed to full application to
all business combinations prior to that date
the goodwill in the balance sheet at the date of transition to
ifrs was £4527000 the impact on the 2007 profit for
the financial year is a reversal of the amortisation previously
charged under uk gaap of £356000
intangible assets 
ifrs 3 “business combinations” requires the existence of
intangible assets to be assessed and when recognised
requires an annual amortisation charge the group
acquired £909000 in relation to contractual rights on the
acquisition of seymour which is being amortised over 44
months giving rise to a charge of £41000 in 2007 deferred
tax has been provided on these intangible assets
employee benefits
ias 19 “employee benefits” requires that liabilities for
employee benefits should be recognised in the period in
which services are provided by the employee this includes
specific guidance on dealing with shortterm employee
benefits such as holiday pay for which there is no
equivalent under uk gaap  consequently the 2007 profit
for the year has been reduced by £114000 being the
increase in accrual to £626000 from the opening position
at 1 october 2006 of £512000 deferred tax has been
provided on these employee benefits
ifrs 1 transition exemptions
ifrs 1 provides certain exemptions which the group has
decided to utilise under ifrs 3 “business combinations”
the group has elected not to apply the standard
retrospectively to business combinations prior to the date of
transition accordingly the classification of such business
combinations remains unchanged from that under uk
gaap  assets and liabilities are recognised at the date of
transition if they would be recognised under adopted ifrs
and are measured using their uk gaap carrying amount
immediately following acquisition as deemed cost under
adopted ifrs unless adopted ifrs requires fair value
measurement ifrs 1 permits revaluations of property plant
and equipment which had been carried out under uk
gaap to be treated as the deemed cost at the date of
transition and the group has applied this exemption
cumulative translation differences
the group has taken advantage of the exemption whereby
the cumulative translation differences are deemed to be
zero at the date of transition to ifrs
share based payments
the group has applied ifrs 2 “share based payment” from
the date of transition to adopted ifrs
in preparing its opening adopted ifrs balance sheet the
group has adjusted amounts previously reported in financial
statements prepared in accordance with uk gaap  an
explanation of how the transition from uk gaap to adopted
ifrs has affected the group’s financial position
performance and cashflow is set out below
reconciliation on transition to adopted ifrs
1  accounting policies
1 october 30 september
2006 2007
£000 £000
total equity as presented 
under uk gaap 5316 10145
employee benefits 512 626
amortisation of goodwill  356
amortisation of intangible asset  41
deferred tax 154 175
equity as presented under 
adopted ifrs 4958 10009
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 40 41 notes to the accounts
1  accounting policies continued
a3 explanation of material adjustments to the cash
flow statement for 2007
interest paid of £768000 during 2007 is classified as
operating cash flow under adopted ifrs but was included
in a separate category of returns on investments and
servicing of finance under uk gaap 
b accounting estimates and judgements
in the preparation of these financial statements the board
has made certain judgements and estimates which impact
the measurement of various assets and liabilities in the
balance sheet the value of transactions recorded in the
income statement and the movements in equity as shown
in the statement of recognised income and expense 
the actual financial outcomes may ultimately differ from that
which is indicated by these judgements and estimates
estimates and judgements are reviewed by management
and the board on an ongoing basis and changes which may
arise in them are reflected in the financial statements for the
period in which such changes are made
the board has determined that the following areas are those
in which estimates and judgements have been made and
where material impacts could arise in the financial statements
were such estimates and judgements to be varied
a accounting for construction contracts in
accordance with ias 11 “construction contracts”
ias 11 requires management to estimate the total expected
costs on a contract and the stage of contract completion in
order to determine both the revenue and profit to be
recognised in an accounting period the group has control
and review procedures in place to monitor and evaluate
regularly the estimates being made to ensure that they are
consistent and appropriate this includes reviewing the
independent certification of the value of work done the
progress of work against contracted timescales and the
costs incurred against plan
b impairment of goodwill in accordance with ias 36
“impairment of assets”
in accordance with ias 36 goodwill is tested annually for
impairment by comparing the carrying value of goodwill with
the recoverable amount which is determined by an
estimation of the value in use of the related cash generating
unit to which the goodwill is attributed the calculation of
the value in use requires estimates to be made of the future
cash flows of the cash generating unit and the timescale
over which they will arise estimated growth rates and
discount factors are also used in the calculation to estimate
the net present value of the cash flows more information is
given in note 9 to these financial statements
c recognition and measurement of intangible assets
in accordance with ifrs 3 “business combinations” 
and ias 38 “intangible assets”
ifrs 3 requires that fair values are attributed to the assets
and liabilities acquired in a business combination as a
result of the seymour acquisition in 2007 the group
recognised as an intangible asset the value of certain
contractual rights seymour has in a framework agreement
with a major customer the recognition and subsequent
measurement of that asset required management to make
estimates as to the future economic benefits which are
encapsulated within the framework agreement this was
done by reviewing the historic cash flows which had been
received by seymour during the life of the agreement
estimating the future cash flows and then discounting them
to determine a net present value the life of these cash
flows was determined as the remaining period of the
agreement more information is given in note 9 to these 
financial statements
d accounting for the defined benefit pension scheme
in accordance with ias 19 “employee benefits”
the independent actuary to the lovell pension scheme
calculates the group’s liability in respect of the defined
benefit scheme the actuary makes assumptions as to
discount rates salary escalations expected returns on
scheme assets future pension increases mortality rates
applicable to members and future rates of inflation these
assumptions are made under the board’s direction the
board determines the appropriateness of these assumptions
by benchmarking them against those used by other
schemes and by taking advice from the independent
actuary if the actual experience of the scheme is different
from the assumptions used then the pension liability may
differ from that shown in these financial statements more
information is given in note 25 to these financial statements
30 september
2007
£000
profit as presented under uk gaap 7098
amortisation of goodwill 356
amortisation of intangible asset 41
employee benefits 114
income taxes 21
profit as presented under adopted ifrs 7320
93035 renew ra 2008 text page 41
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 41 notes to the accounts 42
93035 renew ra 2008 text page 42
1  accounting policies continued
e accounting for provisions in accordance with 
ias 37 “provisions contingent liabilities and
contingent assets”
the group has made provisions against two specific areas
where the board has determined that liabilities exist but
where judgements have to be made as to the quantification
of such liabilities a provision has been made for onerous
lease contracts in respect of property leases where the
board has determined that the expected economic benefits
to be derived from the leases are less than the unavoidable
cost of meeting the group’s obligations under the lease
contract this could arise where the group is the head
lessee for a property lease contract where the property is
not used by the group and where the group has not been
able to sublet the property or has only been able to do so
on terms which are less favourable than those of the 
head lease
the group has a pension scheme related to one of its
dormant subsidiaries which has been in wind up since
1999 the british building and engineering appliances plc
pension scheme the trustees to the scheme who are
independent of the group are determining the level of the
statutory debt on the employer in conjunction with the
independent scheme actuary the board has estimated the
level of this liability in accordance with legal and actuarial
advice a provision in respect of this liability was first made
in the 2005 financial statements however the board now
estimates that that provision was insufficient and has
increased the level of the provision in these financial
statements more information is given in note 18 to these
financial statements
f inventories
the group has undeveloped land assets both in the uk
and in the usa which are carried at the lower of cost and
net realisable value the board has prepared discounted
cash flow projections to determine the present value of the
economic benefits expected to arise from these assets
such calculations involve the use of judgements and
estimates as to the timescale over which the assets may be
realised the values which may be received and the discount
factors applied to the estimated cash flows if the economic
benefit which is ultimately received is different to that which
the board has estimated then the values of the assets as
shown in these financial statements may be overstated
c principal accounting policies
i basis of accounting and preparation
the accounts have been prepared on the going concern
basis and in accordance with applicable accounting
standards under the historical cost convention
the consolidated financial statements have been prepared in
accordance with ifrs as adopted for use in the eu the
group has applied all accounting standards and
interpretations issued by the iasb and international financial
reporting committee relevant to its operations and which are
effective in respect of these financial statements
in the current year the group has adopted the following
new accounting standards
ias 1 amendment to ias 1 “presentation of 
financial statements” capital disclosures the adoption of
the amendment had no impact on the financial statements
ifrs 7 “financial instruments” disclosure and the
consequential amendments to ias 1 the effect of the
adoption of ifrs 7 is to expand the disclosures provided in
the financial statements of the group’s financial instruments
and management of capital but has no effect on the
reported profit or net assets of the group
new ifrs standards and interpretations not applied
ifrs 8 “operating segments” effective for accounting
periods beginning on or after 1 january 2009 replaces ias
14 the new standard uses a management approach
under which segment information is presented on the same
basis as that used for internal reporting purposes the
group does not expect ifrs 8 to have a significant impact
on the group’s financial statements
amendment to ias 39 “financial instruments” recognition
and measurement on eligible hedged items effective for
accounting periods beginning on or after 1 october 2008
this amendment is not relevant to the group’s operations
the group has elected not to adopt any standards or
interpretations early
a summary of the more important group accounting policies
which have been applied consistently is set out below
ii basis of consolidation
the group accounts consolidate the accounts of the
company and its subsidiary undertakings the results and
net assets of undertakings acquired are included in the
group income statement and balance sheet using the
acquisition method of accounting 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
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 42 43 notes to the accounts
1  accounting policies continued
iii revenue
revenue which excludes intragroup revenue and value
added tax comprises
 value of work executed during the year on construction
contracts based on monthly valuations
 sales of developments and land which are recorded upon
legal completion
iv construction contracts
contract revenue includes the initial amount agreed in the
contract plus any variations in contract work claims and
incentive payments to the extent that it is probable that they
will result in revenue and can be measured reliably contract
revenue and expenses are recognised in accordance with
the stage of completion of the contract the stage of
completion is determined by surveys of work performed
contract costs incurred that relate to future activities are
deferred and recognised as amounts recoverable on
contracts when it is probable that the total contract costs
will exceed contract revenue the expected loss is
recognised as an expense immediately to the extent that
progress billings exceed costs incurred plus recognised
profits less recognised losses they are recognised as
amounts due to construction contract customers
v segment reporting
segment reporting is based on two segment formats of
which the primary format is for business streams in
accordance with the group’s internal reporting structure
and strategic plan the secondary format is for
geographical areas transactions between segments are
conducted on an arm’s length basis segment results show
the contribution directly attributable to each segment in
arriving at the group’s operating profit segment assets and
liabilities comprise those assets and liabilities directly
attributable to each segment group eliminations represent
such consolidation adjustments that are necessary to
determine the group’s consolidated assets and liabilities
vi intangible assets 
a goodwill arising on consolidation represents the excess
of the cost of acquisition over the group’s interest in the fair
value of the identifiable assets liabilities and contingent
liabilities of a subsidiary associate or jointlycontrolled entity
at the date of acquisition goodwill is recognised as an
asset and is tested for impairment annually or on such
other occasions that events or changes in circumstances
indicate that it might be impaired
on disposal of a subsidiary undertaking the attributable
amount of unamortised goodwill which has not been
subject to impairment is included in the determination of 
the profit or loss on disposal 
b other intangible assets are stated at cost less
accumulated amortisation and impairment losses the cost
of intangible assets is amortised over their expected useful
lives which is approximately four years
vii property plant and equipment
property plant and equipment are recorded at cost less
provision for impairment if required depreciation is provided
on all property plant and equipment other than freehold
land provision is made at rates calculated to write off the
cost of each asset less estimated residual value evenly
over its expected useful life as follows
� group occupied property
freehold land  no depreciation charge
long leasehold land  shorter of fifty years and
and buildings period of lease
� plant and vehicles  three to ten years
� office equipment  two to seven years
viii impairments
goodwill arising on acquisitions and other assets that have
an indefinite useful life and are not subject to amortisation
are reviewed at least annually for impairment other
intangible assets and property plant and equipment are
reviewed for impairment whenever there is any indication
that the carrying amount of the asset may not be
recoverable if the recoverable amount of any asset is less
than its carrying amount a loss on impairment is
recognised recoverable amount is the higher of the fair
value of the asset less any costs which would be incurred in
selling the asset and its value in use value in use is
assessed by discounting the estimated future cash flows
that the asset is expected to generate for this purpose
assets are grouped into cash generating units which
represent the lowest level for which there are separately
identifiable cash flows impairment losses in respect of
goodwill are not reversed in future accounting periods
reversals of other impairment losses are recognised in
income when they arise
ix inventories
inventories comprise developments land held for
development and raw materials and are stated at the lower
of cost and net realisable value cost includes appropriate
attributable overheads and excludes interest where
necessary provision is made for obsolete slow moving 
and defective inventories
x trade receivables
trade receivables do not carry any interest and are initially
recognised at their fair value and then at amortised cost
93035 renew ra 2008 text page 43
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 43 notes to the accounts 44
93035 renew ra 2008 text page 44
xi trade payables
trade payables on normal terms are not interest bearing
and are initially recognised at their fair value and then at
amortised cost
xii cash and cash equivalents
cash and cash equivalents in the cash flow statement
comprise cash at bank and in hand including bank
deposits with original maturities of less than three months
net of bank overdrafts bank overdrafts are included within
borrowings within current liabilities in the balance sheet
xiii provisions
provisions are recognised when the group has a present
legal or constructive obligation as a result of a past event
and where it is probable that an outflow will be required to
settle that obligation and where the amount can be 
reliably estimated
xiv leasing commitments
assets held under finance leases where substantially all the
benefits and risks of ownership of an asset have been
transferred to the group are capitalised and are depreciated
in accordance with the depreciation policy for the relevant
class of asset or the lease term if shorter the interest
element of the rental obligation is charged to the income
statement and represents a constant proportion of the
balance of capital repayments outstanding rentals under
operating leases are charged to the income statement on a
straightline basis over the term of the lease
xv defined benefit pension scheme
the group has adopted the requirements of ias 19
“employee 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 administrative expenses the
expected return on the scheme’s assets and the increase
during the period in the present value of the scheme’s
liabilities arising from the passage of time are included in
other finance income actuarial gains and losses are
recognised in the group statement of total recognised
income and expense
pension scheme surpluses to the extent they are
considered recoverable under the guidance of ias 19 or
deficits are recognised in full and presented on the face of
the balance sheet
xvi defined contribution pension scheme
contributions to the defined contribution scheme are
charged to the income statement as incurred
xvii taxation
the tax charge is composed of current tax and deferred
tax calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date current
tax and deferred tax are charged or credited to the income
statement except when they relate to items charged or
credited directly to equity in which case the relevant tax is
also dealt with in equity
current tax is based on the profit for the year deferred tax
is provided in full using the liability method on temporary
differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial
statements deferred tax on such assets and liabilities is not
recognised if the temporary difference arises from the initial
recognition other than in a business combination of other
assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit
deferred tax assets are recognised to the extent that it is
probable that future taxable profit will be available against
which the temporary differences can be utilised the
carrying amount of deferred tax assets is reviewed at each
balance sheet date
deferred tax is provided on temporary differences arising on
investments in subsidiary undertakings except where the
timing of the reversal of the temporary difference can be
controlled and it is probable that that the temporary
difference will not reverse in the foreseeable future
deferred tax assets and liabilities are offset when they relate
to income taxes levied by the same taxation authority and
the group intends to settle its current assets and liabilities
on a net basis
xviii foreign currencies
transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction monetary assets and
liabilities denominated in foreign currencies are retranslated
at the rate of exchange ruling at the balance sheet date
the income statements of overseas subsidiary undertakings
are translated at the average rate of exchange ruling
throughout the financial year the balance sheets of
overseas subsidiary undertakings are translated at the rate
of exchange ruling at the balance sheet date exchange
differences arising from this policy and arising on the
retranslation of the opening net assets are taken directly to
reserves all other exchange differences are taken to the
income statement 
1  accounting policies continued
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 44 45 notes to the accounts
1  accounting policies continued
xix financial instruments
financial assets are divided into the following categories
trade receivables and financial assets at fair value the
board assigns financial assets to each category on initial
recognition dependent on the purpose for which the asset
was acquired the categorisation of these assets is
reconsidered at each reporting date at which a choice of
categorisation or accounting treatment is available all
financial assets are recognised whenever the group
becomes party to the contractual provisions of the 
financial instrument all such assets are initially recognised
at fair value 
derecognition of such assets occurs when the group’s right
to receive cash flows from the asset ceases or the rights
and rewards of ownership have been transferred all such
assets are reviewed for impairment at least annually interest
and other cash flows which arise from holding a financial
asset is recognised in the income statement in accordance
with ias 39 financial assets at fair value include assets
classified as held for trading and changes in fair value are
recognised through the income statement
trade receivables are nonderivative financial assets with
expected receipts which are not quoted in an active market
and they arise when the group provides goods or services
a financial asset is assessed at each reporting date to
determine whether there is any objective evidence that it is
impaired a financial asset is considered to be impaired if
objective evidence indicates that one or more events have
had a negative effect on the estimated future cash flows of
that asset an impairment loss in respect of a financial asset
measured at amortised cost is calculated as the difference
between its carrying amount and the present value of the
estimated cash flows discounted at the original effective
interest rate all impairment losses are recognised in the
income statement
financial liabilities are recognised when the group becomes
a party to the contractual provisions of the financial
instrument all interest related charges are recognised as an
expense in the income statement bank loans and hire
purchase liabilities are entered into to provide financing for
the group’s operations and are recognised as funds are
received financial liabilities are measured at amortised cost
xx share based payments
ifrs 2 “share based payment” requires a fair value to be
established for any equity settled share based payments
fair value has been independently measured using a 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
xxi earnings per share
the group presents basic and diluted earnings per share
“eps” data for its ordinary shares basic eps is calculated
by dividing the profit or loss attributable to ordinary
shareholders of the company by the weighted average
number of ordinary shares outstanding in the period
diluted eps is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares which
comprise share options granted to employees
xxii rental income
rental income from property is recognised in the income
statement on a straightline basis over the term of the
lease lease incentives granted are recognised as an
integral part of the total rental income over the term of 
the lease
xxiii finance income and expense
finance income comprises interest income on funds
invested and gains on hedging instruments that are
recognised in income or expense interest income is
recognised as it accrues in income or expense using the
effective interest method
finance expenses comprise interest expense on
borrowings unwinding of the discount on provisions and
losses on hedging instruments that are recognised in
income or expense all borrowing costs are recognised in
income or expense using the effective interest method
93035 renew ra 2008 text page 45
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 45 notes to the accounts 46
93035 renew ra 2008 text page 46
other information
building 436 372  216 358 
engineering 1568 1302  824 935 
property  central activities 24 34 248 20 33 41
2028 1708 248 1060 1326 41
for management purposes the group is organised into three operating segments building engineering and property 
central activities the three operating segments are the basis on which the group reports its primary segment information
segment information about the group’s continuing operations is presented below
a business analysis
2  segmental analysis
revenue is analysed as follows
building 294553 265668
engineering 93286 68777
property  central activities 8213 16969
inter segment revenue 5495 3265
group revenue from continuing operations 390557 348149
2008 2007
£000 £000
analysis of operating profit
building 4892 889 4003 3652
engineering 3469 361 3108 3294
property  central activities 761 1515 2276 1728
operating profit 7600 2765 4835 5218
net financing income 1907  1907 2176
profit before income tax 9507 2765 6742 7394
before exceptional
exceptional items and
items and amortisation
amortisation of intangible
of intangible assets
assets see note 3 2008 2007
£000 £000 £000 £000
balance sheet analysis of 
business segments
building 157281 171294 14013 192515 203832 11317
engineering 30843 24739 6104 32061 25304 6757
property  central activities 234959 212769 22190 237613 223044 14569
group eliminations 282466 282466  322005 322005 
group net assets 140617 126336 14281 140184 130175 10009
2008 2007
assets liabilities net assets assets liabilities net assets
£000 £000 £000 £000 £000 £000
capital depreciation amortisation capital depreciation amortisation
additions additions
£000 £000 £000 £000 £000 £000
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 46 47 notes to the accounts
b geographical analysis
cost of sales includes £20m 2007 £145m of inventories recognised as an expense in the period there were no 
writedowns or reversal of writedowns of inventories recognised as an expense in the period 2007 £nil
2  segmental analysis continued
3  operating profit
revenue is analysed as follows
uk 384485 347780
usa 6072 369
group revenue from continuing operations 390557 348149
2008 2007
£000 £000
balance sheet analysis of geographical segments
uk 128675 126814
usa 11942 13370
group assets 140617 140184
assets assets
£000 £000
other information
uk 2028 1060
usa  
2028 1060
capital capital
additions additions
£000 £000
operating profit is arrived at after chargingcrediting
auditors’ remuneration  audit services 170 150
depreciation of owned assets 1429 1047
depreciation of assets held under finance leases 279 279
operating lease rentals  plant and machinery 29 34
operating lease rentals  motor vehicles 408 358
operating lease rentals  other 2880 3055
rental income 1275 1348
profit on sale of property plant and equipment 262 85
foreign exchange gainslosses 332 192
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 60 56
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 110 94
other services related to ifrs conversion 27 
other services related to employment matters 121 37
318 187
2008 2007
£000 £000
93035 renew ra 2008 text page 47
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 47 notes to the accounts 48
93035 renew ra 2008 text page 48
3  operating profit continued
4  finance costs
exceptional items and amortisation of intangible assets
redundancy costs 1471 
costs in relation to bbea pension scheme see note 18 1168 
profit on disposal of plant fleet 122 
total exceptional items 2517 
amortisation of intangible assets see note 9 248 41
2765 41
2008 2007
£000 £000
the board has determined that certain charges to the income statement should be separately identified for better
understanding of the group’s results for the year ended 30 september 2008
following the deterioration in market conditions faced by certain of the group’s companies the group decided to reduce its
cost base in its building business and to realign the activities of one of its engineering businesses as a result the group
has recorded redundancy costs of £1471000 approximately £750000 of which was paid prior to the year end associated
with the realignment the group disposed of its plant fleet in that engineering business and the resultant profit on disposal of
£122000 has also been separately identified
additionally the group has increased the provision in respect of the statutory debt on the employer liability arising from the
british building and engineering appliances plc pension scheme resulting in a charge of £1168000 £960000 of this cost
is an increase in the provision with the balance being costs incurred in the year the winding up of the scheme commenced
in 1999 and is expected to be completed in the year ending 30 september 2009 further details are given in note 18
the board has also separately identified the charge of £248000 for the amortisation of the fair value ascribed to certain
intangible assets other than goodwill arising from the acquisition of seymour cec holdings limited this item was not
separately identified in the income statement for 2007 as the charge of £41000 for that year was not considered by the
board to be material further details are given in note 9
interest payable
on bank loans and overdrafts 223 739
other interest payable 31 29
254 768
other finance income  defined benefit pension scheme
expected return on scheme assets 6957 6560
interest on scheme liabilities 6414 5815
543 745
2008 2007
£000 £000
further information on the defined benefit pension scheme is set out in note 25 to the accounts
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 48 49 notes to the accounts
5  employee numbers and remuneration
details of individual directors’ emoluments and pension contributions can be found in the directors’ remuneration report
on page 31 these numbers have been audited
a analysis of expense in year
the average monthly number of employees including executive directors
employed in continuing activities during the year was 1441 1341
at 30 september 1378 1512
production 736 633
administrative 705 708
1441 1341
2008 2007
number number
cost of staff including executive directors during the year amounted to
wages and salaries 57056 50858
social security costs 6286 5507
other pension costs 1819 2628
share based payments 136 97
65297 59090
£000 £000
6  income tax expense
current tax
uk corporation tax on profits of the year 159 291
adjustments in respect of previous periods 409 
568 291
foreign tax 51 107
total current tax 619 398
deferred tax  defined benefit pension scheme 699 616
deferred tax  other timing differences 164 853
deferred tax  adjustment in respect of previous periods  87
total deferred tax 863 324
income tax expense 1482 74
2008 2007
£000 £000
93035 renew ra 2008 text page 49
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 49 notes to the accounts 50
93035 renew ra 2008 text page 50
b factors affecting income tax expense for the year
the group has available further unused uk tax losses of £89m 2007 £88m to carry forward against future taxable profits
the group also has unused usa tax losses of 27m £15m 2007 43m £22m to carry forward against future taxable
profits in the usa a substantial element of these losses relates to activities which are not forecast to generate the level of
profits needed to utilise these losses a deferred tax asset has been provided to the extent considered reasonable by the
directors where recovery is expected to be recognisable within the foreseeable future the unrecognised deferred tax asset
in respect of these losses amounts to £29m 2007 £31m
profit before income tax 6742 7394
profit multiplied by standard rate
of corporation tax in the uk of 29 2007 30 1955 2218
effects of
expenses not deductible for tax purposes 187 55
timing differences not provided in deferred tax 408 503
losses utilised not previously recognised 1480 1882
change in tax rate 48 166
foreign tax 51 107
adjustments to tax charge in respect of previous periods 409 87
1482 74
2008 2007
£000 £000
c deferred tax asset
defined benefit pension scheme 414 997
other timing differences 191 175
tax losses 3464 3815
4069 4987
2008 2007
£000 £000
d deferred tax liabilities
accelerated capital allowances 9 90
fair value adjustments 247 328
256 418
e reconciliation of deferred tax asset
at 1 october 4987 4329
change in deferred tax rate to 28  193
origination of timing differences 335 1040
defined benefit pension scheme  income statement 699 616
defined benefit pension scheme  sorie 116 427
at 30 september 4069 4987
6  income tax expense continued
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 50 51 notes to the accounts
f reconciliation of deferred tax liability
dividends are recorded only when authorised and are shown as a movement in equity rather than as a charge in the income
statement the directors are proposing that a final dividend of 20p per ordinary share be paid in respect of the year ended
30 september 2008 this will be accounted for in the 200809 financial year
the dilutive effect of share options is to increase the number of shares by 1598000 2007 1154000 and reduce basic
earnings per share by 023p 2007 023p
at 1 october 418 90
accelerated capital allowances 81 
arising on fair value adjustments 81 328
at 30 september 256 418
2008 2007
£000 £000
interim related to the year ended 30 september 2008 100 060
final related to the year ended 30 september 2007 120 080
total dividend paid 220 140
interim related to the year ended 30 september 2008 598 359
final related to the year ended 30 september 2007 719 480
total dividend paid 1317 839
2008 2007
penceshare penceshare
£000 £000
6  income tax expense continued
7  dividends
earnings before exceptional costs 
and amortisation 7298 1218 1187 7320 1222 1199
exceptional costs and amortisation 2038 340 332   
basic earnings per share 5260 878 855 7320 1222 1199
weighted average number of shares 59899 61497 59899 61053
2008 2007
earnings eps deps earnings eps deps
£000 pence pence £000 pence pence
8  earnings per share
93035 renew ra 2008 text page 51
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 51 notes to the accounts 52
93035 renew ra 2008 text page 52
cost
at 1 october 2006 4527 
additions 3989 909
at 1 october 2007 8516 909
additions 32 
at 30 september 2008 8548 909
impairment lossesamortisation
at 1 october 2006  
charge for year  41
at 1 october 2007  41
charge for year  248
at 30 september 2008  289
carrying amount
at 30 september 2008 8548 620
at 30 september 2007 8516 868
at 1 october 2006 4527 
the carrying amounts of goodwill by business segment are as follows
building 2503 2503
engineering 6045 6013
property  central activities  
8548 8516
goodwill contractual
rights
£000 £000
2008 2007
£000 £000
9  intangible assets
goodwill of £4021000 was acquired on acquisition of seymour cec holdings limited and has been reviewed for
impairment one year after the acquisition as permitted by ifrs 3 no impairment has been identified
amortisation charges in respect of intangible assets with a finite life are recorded within administrative expenses in the
income statement the amortisation rates are disclosed in the accounting policies
in order to test goodwill for impairment the group prepares cash flow forecasts for each cash generating unit derived from
the most recent financial budgets approved by management and extrapolates cash flows based on conservative estimated
growth rates according to management’s view of longer term prospects for each cash generating unit the growth rate
used at 30 september 2008 was 3 this rate does not exceed the average longterm growth rate for the construction
industry or gross domestic product the rate used to discount the forecast cash flows is 8 as the board considers that
rate appropriate in the current financial market as an approximation of the cost of funds to the group
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 52 53 notes to the accounts
cost
at 1 october 2006  789 5002 5791
additions   1060 1060
disposals   893 893
acquisition of subsidiary 500  1358 1858
at 1 october 2007 500 789 6527 7816
additions   2028 2028
disposals   3735 3735
at 30 september 2008 500 789 4820 6109
depreciation
at 1 october 2006  645 1327 1972
charge for year  5 1321 1326
disposals   670 670
at 1 october 2007  650 1978 2628
charge for year  5 1703 1708
disposals   2730 2730
at 30 september 2008  655 951 1606
net book value
at 30 september 2008 500 134 3869 4503
at 30 september 2007 500 139 4549 5188
at 1 october 2006  144 3675 3819
freehold long leasehold plant vehicles total
land  buildings land  buildings  equipment
£000 £000 £000 £000
10  property plant and equipment
developments and undeveloped land 6231 6021
raw materials 136 370
6367 6391
2008 2007
£000 £000
11  inventories
the net book value of assets under finance leases at 30 september 2008 was £460000 2007 £1026000 during the
year £279000 2007 £279000 of depreciation was charged against assets held under finance leases
£04m 2007 £20m of inventories are pledged as security for liabilities
93035 renew ra 2008 text page 53
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 53 notes to the accounts 54
93035 renew ra 2008 text page 54
contracts in progress at the balance sheet date
amounts due from construction contract customers included in trade and other receivables 80044 81453
amounts due to construction contract customers included in trade and other payables 15082 15426
64962 66027
contract costs incurred plus recognised profits less recognised losses to date 3303391 2987238
less progress billings 3238429 2921211
64962 66027
trade receivables 346 3196
amounts due from construction contract customers 80044 81453
other receivables 5943 3400
prepayments and accrued income 1433 1620
87766 89669
2008 2007
£000 £000
ageing of past due but not impaired receivables
30180 days 1502 1507
180  365 days 2247 1567
greater than 1 year 4013 4489
7762 7563
2008 2007
£000 £000
2008 2007
£000 £000
12  trade and other receivables
13  construction contracts
the directors consider that the carrying amount of trade and other receivables approximates to their fair value 
included in trade and other receivables are debtors with a carrying value of £78m 2007 £76m which are past due at the
reporting date for which the group has not provided as there has not been a significant change in credit quality and the
group believes that the amounts are still considered recoverable since there is no objective evidence that these financial
assets are impaired the group does not hold any collateral over these balances the average age of these receivables is
341 days 2007 354 days
at 30 september 2008 retentions held by customers amounted to £170m 2007 £179m advances received from
customers for contract work amounted to £151m 2007 £154m
amounts due from construction contract customers which are past due at the reporting date amounted to £78m 2007 £76m
this amount includes retention balances of £45m 2007 £51m the group does not hold any collateral over these
balances or other trade and other receivables
contract revenue recognised in the year amounted to £3823m 2007 £3312m
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 54 55 notes to the accounts
cash at bank 28281 24559
cash in hand 8 6
28289 24565
2008 2007
£000 £000
14  cash and cash equivalents
amounts due to construction contract customers 15082 15426
trade payables 35519 36646
other taxation and social security 2021 2053
other payables 1272 3771
accruals and deferred income 65352 63408
119246 121304
2008 2007
£000 £000
15  trade and other payables
bank overdrafts 110 165
2008 2007
£000 £000
16  borrowings
cash at bank includes £00m 2007 £04m in respect of the net position on a sterling bank deposit of £20m 
2007 £81m and a connected us  loan of £20m us 35m 2007 £77m 155m translated at the year end rate
used to hedge the intercompany balance with the us subsidiary company
amounts payable under finance leases
within one year 73 458 67 429
within 25 years 11 126 10 118
84 584 77 547
less future finance charges 7 37  
present value of lease obligations 77 547 77 547
less amount due for settlement within 12 months 67 429
amount due for settlement after 12 months 10 118
minimum lease payments present value of minimum
lease payments
2008 2007 2008 2007
£000 £000 £000 £000
17  obligations under finance leases
93035 renew ra 2008 text page 55
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  151208  1358  page 55 notes to the accounts 56
93035 renew ra 2008 text page 56
it is the group’s policy to lease certain of its plant and equipment under finance leases the average outstanding lease term
is 1 year 2007 2 years for the year ended 30 september 2008 the average effective borrowing rate was 7 2007 7
interest rates are fixed at the contract date all leases are on a fixed repayment basis and no arrangement has been entered
into for contingent rental payments
all lease obligations are denominated in sterling the fair value of the group’s lease obligations approximates to their carrying
amount the group’s obligations under finance leases are secured on the asset to which the lease relates
property obligations represent commitments on leases for properties which the group does not occupy where the group
does not expect to receive income sufficient to cover the full commitment the provision represents outflows which are
expected to occur over the next five years the provision has increased during the year as one of the group’s properties has
become vacant 
other provisions relate to a known claim where uncertainty remains as to the outcome but the provision represents
management’s best estimate of the expected outflow of economic benefit the provision relates to the statutory debt on the
employer liability arising from the winding up of the british building  engineering appliances plc pension scheme the
winding up of this scheme commenced in 1999 and is expected to be completed in the 2009 financial year the trustees
who are independent of the group are determining the level of the statutory debt on the employer in conjunction with the
independent scheme actuary the board has estimated the level of this liability in accordance with legal and actuarial advice
a provision in respect of this liability was first made in the 2005 financial statements however the board now estimates that
the provision was insufficient and has increased the level of the provision in these financial statements
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 disclosures below provide information about the contractual terms of the group’s interest bearing
deposits loans and borrowings
17  obligations under finance leases continued
18  provisions
at 1 october 2007 1410 2292 3702
provision increase during year 347 960 1307
at 30 september 2008 1757 3252 5009
noncurrent liabilities 1068  1068
current liabilities 689 3252 3941
at 30 september 2008 1757 3252 5009
property obligations other total
£000 £000 £000
19  other financial instruments
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 56 57 notes to the accounts
2007
assets
sterling   27757 27757
dollar   4498 4498
 32255 32255
liabilities
sterling 30 547  547
dollar   7855 7855
547 7855 8402
2008
assets
sterling   29484 29484
dollar   794 794
 30278 30278
liabilities
sterling 30 77  77
dollar   2099 2099
77 2099 2176
interest rate profile of financial assets and liabilities
the interest bearing assets accrue interest at prevailing market rates generally the group holds deposits which are
repayable on demand
the sterling interest bearing liabilities accrue interest at a rate which is linked to the lender’s base rate or libor certain 
us interest bearing liabilities accrue interest at a rate which is linked to the lender’s us prime lending rate
the maturity of the fixed rate financial liabilities is disclosed in note 17 the fixed rate liabilities have a weighted average
period of 1 year 2007 2 years the dollar floating rate liabilities are repayable on demand
fair value of financial assets and liabilities
there are no material differences between fair value and the book value of the group’s financial assets and liabilities
financial risks
the group has exposure to a number of financial risks through the conduct of its operations risk management is governed
by the group’s operational policies guidelines and authorisation procedures which are outlined in the corporate governance
statement the key financial risks resulting from financial instruments are credit liquidity currency and market risk
a credit risk 
credit risk is the risk of loss if a customer fails to meet its financial obligations and results primarily from the group’s trade
and other receivables the degree to which the group is exposed to this risk depends on the individual financial situation of
each specific customer the group does not have any risk arising from a concentration of trade or other receivables in any
customer or group of customers the group assesses the credit worthiness of every customer prior to entering into any
contract and requires appropriate evidence of financial capability on a case by case basis the group reviews trade and other
receivables for impairment on a regular basis and information relating to the ageing of receivables is provided in note 12
19  other financial instruments continued
fixed rate financial assetsliabilities
weighted average fixed floating
interest rate rate rate total
 £000 £000 £000
93035 renew ra 2008 text page 57
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 57 notes to the accounts 58
93035 renew ra 2008 text page 58
b liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the board is
responsible for ensuring that the group has sufficient liquidity to meet its financial liabilities as they fall due and does so by
monitoring cashflow forecasts and budgets the board aims to maintain a strong capital base so as to ensure investor and
market confidence and to sustain the future of the business the capital structure of the group consists of equity
attributable to equity holders of the company as disclosed in note 20 and reserves as disclosed in note 21 the group
arranges shortterm overdraft facilities and hire purchase facilities as the board deems necessary the group does not have
any derivative or non derivative financial liabilities other than those disclosed in notes 15 to 17 and the retirement benefit
obligations disclosed in note 25 an analysis of the maturity profile for finance lease liabilities is given in note 17
c currency risk
the only exposure of the group to currency risk ie exposure to gains or losses on foreign exchange which would be
recognised in the income statement is in respect of the us dollar bank account which is maintained by the parent
company in the uk and the unhedged portion of an intercompany loan at 30 september 2008 the unhedged portion of the
intercompany loan was 4934000 2007 4905000 at 30 september 2008 the balance on the us dollar bank account
was 1000 2007 1000 the dollar closing exchange rate was 178 £1 2007 202 £1 resulting in a foreign
exchange gain of £392000 being credited to the income statement on the unhedged assets consequently the profit
reported in the income statement will be impacted by £14000 for each  cent movement in exchange rates exchange rate
movements on translation of lovell america inc’s net assets are charged to the cumulative translation adjustment within
total equity the exchange gain arising on the translation of lovell america inc’s net assets was £202000 the total equity
statement will be impacted by £41000 for each  cent movement in exchange rates 
all functional currencies of the group operations are denominated in sterling with the exception of the us operations whose
functional currency is the us dollar
the company has a loan of 3537000 2007 15537000 which acts as an economic hedge against the intercompany
balance due by lovell america inc exchange losses of £317000 2007 gains £608000 were made during the year on
foreign currency borrowings this has been fully offset against exchange gains made on the intercompany balance due by
lovell america inc 
d market risk
market risk is the risk that changes in market prices will affect the group’s income or the carrying amount of its holding of
financial instruments the principal risk relates to interest rates where the group’s risk is limited to the rates applying to its
interest bearing shortterm deposits a reduction in market interest rates could lead to a reduction in the group’s interest
income consequently a 1 decrease in market interest rates would reduce finance income by £10000 for every £1million
held on deposit for one year the market risk associated with financial liabilities is limited to the interest rate on the group’s
us dollar overdraft
a 1 increase in interest rates would lead to an increase in the group’s interest expense of about £21000 subject to
foreign exchange rate movements on the assumption of a us 35million loan being outstanding for one year the group’s
hire purchase financial liabilities are all at fixed rates of interest
there have been no changes in the nature of the risks arising from financial instruments in either the current or previous
financial year however the extent of the risk has reduced following the reduction of the company’s us  loan
19  other financial instruments continued
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 58 59 notes to the accounts
the holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at meetings of the company
there were no ordinary shares issued in either year ending 30 september 2008 or 2007
share options
the group operates a share option scheme the renew holdings 2004 executive share option scheme the scheme has
both an approved and unapproved element the difference between the two elements is that the approved scheme has the
advantage of certain inland revenue approved tax benefits
both elements have the same general terms and conditions options issued under the scheme must be held for three years
before they can vest and become exercisable they must be exercised within 10 years from the date of grant 
vesting of options is dependent on the achievement of certain performance criteria which are established by the
remuneration committee at the point of grant in respect of the options granted in the 2006 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 the 2007 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 in respect of the options granted during the 2008 financial year 25 of the options will vest if the
group’s earnings per share for the year ending 30 september 2010 exceeds 125p for 100 vesting to occur the group’s
earnings per share for the year ending 30 september 2010 must be at least 16p
the earnings per share criteria in respect of the options granted during the 2006 financial year have been met and the options
are expected to vest on 7 june 2009
the scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the
options will lapse
the number of options in issue and their exercise price is given in note 21
20  share capital
authorised
100000000 2007 100000000 ordinary shares of 10p each 10000 10000
allotted called up and fully paid
59898927 2007 59898927 ordinary shares of 10p each 5990 5990
2008 2007
£000 £000
93035 renew ra 2008 text page 59
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 59 notes to the accounts 60
93035 renew ra 2008 text page 60
there is no available analysis of goodwill written off against reserves in respect of existing subsidiaries that were acquired prior
to 1989 and therefore in accordance with the guidance of ifrs 3 the directors are not able to state this figure goodwill
written off against reserves in respect of subsidiaries acquired after 1989 amounts to £nil 2007 nil
share based payments reserve
ifrs 2 “share based payment” requires a fair value to be established for any equity settled share based payments fair value
has been independently measured by baker tilly chartered accountants using a blackscholes valuation model the fair
value determined at the grant date of the equity settled share based payments is expensed on a straightline basis over the
vesting period based on the group’s estimate of shares that will eventually vest £136000 2007 £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 2008 were as follows
there were 1284196 options outstanding at 1 october 2007 being those issued in june 2006 and january 2007 as
detailed above
date of grant 7 june 2006 8 january 2007 3 december 2007 total
awards outstanding at 30 september 2008
 directors 761904 522292 417960 1702156
exercise price and price at date of grant 525p 785p 1030p 
maximum option life 10 years 10 years 10 years 
assumed option life for purposes of valuation 3 years 3 years 3 years 
expected volatility 47 46 40 
dividend yield 100 150 180 
risk free interest rate 467 488 446 
value per option 205p 259p 280p 
group
at 1 october 2006 5893 3896   10821
transfer from income statement for the year 7320
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 1 october 2007 5893 3896 150 97 5717
transfer from income statement for the year 5260
dividends paid 1317
recognition of share based payments 136
exchange differences 574
actuarial loss recognised in pension scheme 497
movement on deferred tax relating to the 
pension scheme 116
at 30 september 2008 5893 3896 424 233 2155
share capital cumulative share based
premium redemption translation payments retained
account reserve reserve reserve earnings
£000 £000 £000 £000 £000
21  reserves
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 60 61 notes to the accounts
profit for the year 5260 7320
dividends paid 1317 839
3943 6481
other recognised income and expense for the year 193 1527
recognition of share based payments 136 97
net movement in total equity 4272 5051
at 1 october 2007 10009 4958
at 30 september 2008 14281 10009
23  capital and leasing commitments
22  reconciliation of movements in total equity
2008 2007
£000 £000
commitments under noncancellable operating leases
under one year 2542 488 3030 3181
two to five years 8860 487 9347 10298
five or more years 23634 27 23661 26279
35036 1002 36038 39758
land  other total total
buildings 2008 2007
£000 £000 £000 £000
receivables under noncancellable operating leases
under one year 1239  1239 1346
two to five years 4001  4001 3930
five or more years 2541  2541 1503
7781  7781 6779
land  other total total
buildings 2008 2007
£000 £000 £000 £000
with regard to the operating leases held by the group as lessor the group recognised £1275000 2007 £1348000 of
rental income in the income statement relating to subletting of surplus premises the future minimum sublease receipts
expected to be received under noncancellable operating leases are as follows
the group had capital commitments at 30 september 2008 of £nil 2007 £90000
93035 renew ra 2008 text page 61
a letter of credit of £353000 2007 £607000 remains outstanding at 30 september 2008 in respect of lovell america inc
as part of the office of fair trading’s “oft” review of tender activities within the construction industry the company notes
that together with one of its current and one of its former subsidiaries it has been named in connection with alleged
infringements of uk competition law in the sector in the list of 112 construction companies in the oft’s statement of
objections the company and its current subsidiary have responded to the oft however it is not possible to predict the
effect of the oft’s investigation on the group’s financial position or results of its operations
24  contingent liabilities
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 61 notes to the accounts 62
93035 renew ra 2008 text page 62
the mortality tables adopted for the 2008 valuation are the continuing mortality investigations pa1992 series with projected
longevity improvements fully allowed for according to each member’s year of birth and with an additional allowance for future
longevity improvements known as the medium cohort adjustment the same tables but with the short cohort adjustment were
used in the 2007 valuation the same tables but without a cohort adjustment were used in 2006 an example of the effect of
the change in mortality assumption is that under the 2008 assumptions a 60 year old male pensioner is assumed to live for a
further 27 years compared with 26 years under the 2007 assumptions the 2006 assumptions assume 245 years 
the assets in the scheme and the expected rates of return were
rate of increase in salaries 400 400 400
lpi increases to pensions in payment 340 290 250
discount rate 700 620 530
inflation assumption 350 290 250
increases in deferred pensions 350 290 250
as at as at as at
30 september 30 september 30 september
2008 2007 2006
annuities 632  
gilts  25 fund 50659 720 54914 750 56494 695
bonds 48190 700 47998 620 52058 530
cash 39 450 36 575 89 475
total 99520 102948 108641
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
2008 2007 2006
£000 £000 £000
defined benefit pension scheme
the defined benefit pension scheme was closed to new members in june 2000 on 1 august 2001 the board decided that
no further benefits would accrue to existing members with more than five years expected service remaining these members
were transferred to the defined contribution scheme but retained the benefits earned to date under the defined benefit
pension scheme 
ias 19 “employee benefits”
the directors have adopted the accounting required by ias 19 with effect from the transition date the directors have
discussed the assumptions used in determining the actuarial valuations set out below with independent pensions advisers
and have determined that they are appropriate
the following disclosures required by ias 19 have been based on the most recent actuarial valuation as at 30 september 2008
carried out by barnett waddingham consulting actuaries using the following financial assumptions
25  employee benefits retirement benefit obligations
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 62 63 notes to the accounts
the following amounts at 30 september were measured in accordance with the requirements of ias 19
25  employee benefits retirement benefit obligations continued
movements in scheme assets and liabilities
total fair value of assets brought forward 102948 108641
expected return on scheme assets 6957 6560
employer contributions 2106 1534
annuities 631 
benefits paid 6217 5827
actuarial loss on scheme assets 6905 7960
total fair value of assets carried forward 99520 102948
present value of scheme obligations brought forward 106507 112596
interest costs 6414 5815
current service costs 72 79
experience gainloss on scheme liabilities 600 575
annuities 631 
benefits paid 6217 5827
actuarial decrease in scheme obligations 5808 6731
total fair value of obligations carried forward 100999 106507
deficit in the scheme 1479 3559
deferred tax 414 997
net scheme deficit 1065 2562
amounts charged to operating profit
current service cost 72 79
72 79
amount credited to other financial income
expected return on scheme assets 6957 6560
interest on scheme liabilities 6414 5815
543 745
amounts recognised in the statement of recognised income and expense
actual less expected return on scheme assets 6905 7960
experience gainslosses on scheme liabilities 600 575
effect of change in assumptions on scheme liabilities 5808 6731
actuarial loss 497 1804
movement in the net scheme deficit during the year
net scheme deficit brought forward 3559 3955
current service cost 72 79
cash contribution 2106 1534
other finance income 543 745
actuarial loss 497 1804
net scheme deficit carried forward 1479 3559
year ended year ended
30 september 30 september
2008 2007
£000 £000
93035 renew ra 2008 text page 63
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 63 difference between the expected and 
actual return on scheme assets £6905000 £7960000 £1786000 £6623000 £426000
as a percentage of the assets at the end of the year 694 773 164 610 042
experience gainslosses on scheme liabilities £600000 £575000 £72000 £647000 £1176000
as a percentage of the liabilities at the end of the year 059 054 000 061 111
total amount recognised in the statement 
of recognised income and expense £497000 £1804000 £7803000 £412000 £11294000
as a percentage of the liabilities at the end of the year 049 169 693 039 1070
notes to the accounts 64
93035 renew ra 2008 text page 64
25  employee benefits retirement benefit obligations continued
26  related parties
2008 2007 2006 2005 2004
the scheme has been in operation for many years and after taking advice from the group’s pensions advisors the directors
have determined that it is not possible to allocate the assets and liabilities of the scheme between the various group
companies as permitted by ias 19 the group has taken advantage of the multiemployer exemption and the deficit of the
scheme is accounted for as an unallocated consolidation adjustment
defined contribution pension scheme
the assets of the defined contribution pension scheme are held in separate trusteeadministered funds the group made
contributions of £1819000 2007 £2628000 into the scheme during the year there is also £182000 2007 £114000 of
accruals relating to the scheme
on 1 april 2008 this scheme commenced winding up the assets are to be transferred to individual stakeholder plans which
the group has established for scheme members
the group has a related party relationship with its key management personnel who are the main board directors b may 
j samuel r harrison and j bishop whose total compensation amounted to £1022000 all of which was represented by
shortterm employment benefits
there were no other transactions with key management personel in the year
27  acquisition of subsidiary undertaking
on 25 july 2007 the group 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 until 30 september 2007 seymour contributed sales of £40m and a profit before taxation of £nil to the
consolidated results
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 64 65 notes to the accounts
the consideration paid was £6821000 in cash representing a total net cash outflow of £5932000 £889000 cash acquired
on acquisition goodwill of £3989000 was acquired on acquisition and was reviewed for impairment one year after the
acquisition as permitted by ifrs 3 no impairment was identified the goodwill is attributable to the expertise and workforce of
the acquired business other intangible assets of £909000 representing contractual rights was also acquired and is being
amortised over its useful economic life in accordance with ifrs 3 if the acquisition had occurred on 1 october 2006 group
revenue would have been an estimated £364m and profit for the year ended 30 september 2007 would have been
approximately £76m
the value of land acquired with seymour and included in property plant and equipment has been increased from £239000 
to £500000 as a result of a fair value adjustment the land was independently valued by hanline associates chartered
surveyors in august 2007 on an existing use basis
27  acquisition of subsidiary undertaking continued
noncurrent assets
intangible assets  goodwill 3989 3989
intangible assets  other 909 909
property plant and equipment 1598 261 1859
current assets
inventories 72 72
trade and other receivables 3619 3619
cash and cash equivalents 889 889
4580 4580
total assets 6178 5159 11337
noncurrent liabilities
deferred tax liabilities 328 328
obligations under finance leases 77 77
77 328 405
current liabilities
trade and other payables 3834 3834
obligations under finance leases 277 277
4111 4111
total liabilities 4188 328 4516
net assets 1990 4831 6821
book value adjustments fair value
£000 £000 £000
with effect from 1 october 2008 seymour acquired the whole of the issued share capital of c a pumps limited “ca” for
a consideration of £175m all of which was paid in cash in the year ended 31 december 2007 ca recorded sales of £47m
and a profit before tax of £02m the net assets of ca at the date of acquisition were £07m included in the assets of ca is
a freehold property independently valued at £08m which is carried in the balance sheet of ca at £05m
28  post balance sheet event
the value of the assets and liabilities of seymour at the date of acquisition were
93035 renew ra 2008 text page 65
notes to the accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 65 66
93035 renew ra 2008 text page 66
company balance sheet
at 30 september 2008
fixed assets
tangible assets e 186 196
investments f 90525 90493
90711 90689
current assets
debtors due within one year g 21356 26233
cash at bank and in hand h 18655 9893
40011 36126
creditorsamounts falling due in less than one year i 109119 106990
net current liabilities 69108 70864
total assets less current liabilities 21603 19825
net assets 21603 19825
capital and reserves
share capital k 5990 5990
share premium account l 5893 5893
capital redemption reserve l 3896 3896
revaluation reserve l 73 73
share based payments reserve l 233 97
profit and loss account l 5518 3876
equity shareholders’ funds m 21603 19825
approved by the board and signed on its behalf by
r harrison obe
chairman
25 november 2008
note 2008 2007
£000 £000
company balance sheet annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 66 67 notes to the company accounts
a  accounting policies 
i basis of accounting
the accounts have been prepared on the going concern
basis and in accordance with applicable accounting
standards under the historical cost convention 
a summary of the more important company accounting
policies which have been applied consistently is set 
out below
ii investments in subsidiaries
investments in subsidiaries are recorded at cost less
provision for impairment
iii tangible fixed assets
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
long leasehold land  shorter of fifty years and
and buildings period of lease
plant and vehicles  three to ten years
office equipment  two to seven years
iv leasing commitments
rentals under operating leases are charged to the profit
and loss account on a straightline basis over the term of
the lease
v share based payments
frs 20 “share based payments” requires a fair value to be
established for any equity settled share based payments
fair value has been independently measured using a 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 company’s estimate of shares that will
eventually vest
vi deferred taxation
the payment of taxation is deferred or accelerated because
of timing differences between the treatment of certain items
for accounting and taxation purposes full provision for
deferred taxation is made under the liability method without
discounting on timing differences that have arisen but not
reversed by the balance sheet date unless such provision
is not permitted by frs 19 “deferred tax” deferred tax
assets are recognised to the extent it is considered more
likely than not that they will be recovered in accordance
with frs 19 deferred tax is not provided for on
a revaluation gains on land and buildings unless there 
is a binding agreement to sell them at the balance 
sheet date
b gains on the sale of nonmonetary assets if the taxable
gain will probably be rolled over
c fair value adjustment gains to fixed assets and stock to
uplift prices to those ruling when an acquisition is made
d extra tax payable if the overseas retained profits of
subsidiaries joint ventures or associates are remitted in
the future
deferred tax assets are recognised for taxable losses
relating to trading to the extent that those losses are
expected to be recoverable within the foreseeable future
and also in respect of the pensions deficit recorded under
frs 17 where the directors consider that the asset will be
utilised by the expected profitability of the company
vii foreign currencies
transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction monetary assets and
liabilities denominated in foreign currencies are retranslated
at the rate of exchange ruling at the balance sheet date
exchange differences are taken to the profit and loss account
viii defined benefit pension scheme
the company has adopted the requirements of frs 17
“retirement benefits” the directors have determined that it
is not possible to allocate the assets and liabilities of the
scheme between the various group companies accordingly
the scheme is not accounted for in the company’s balance
sheet however any increase in the present value of
liabilities within the defined benefit scheme expected to
arise from employee service in the period is charged to
operating profit in respect of the company’s employees
ix defined contribution pension scheme
contributions to the defined contribution scheme are
charged to the profit and loss account as incurred
x dividends
dividends unpaid at the balance sheet date are only
recognised as a liability at that date to the extent that they are
appropriately authorised and are no longer at the discretion
of the company unpaid dividends that do not meet these
criteria are disclosed in the notes to the financial statements
93035 renew ra 2008 text page 67
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 67 notes to the company accounts 68
93035 renew ra 2008 text page 68
cost of staff including executive directors during the year amounted to
wages and salaries 2546 2302
social security costs 304 263
other pension costs 106 48
share based payments 136 97
3092 2710
£000 £000
interim related to the year ended 30 september 2008 100 060
final related to the year ended 30 september 2007 120 080
total dividend paid 220 140
2008 2007
penceshare penceshare
interim related to the year ended 30 september 2008 598 359
final related to the year ended 30 september 2007 719 480
total dividend paid 1317 839
£000 £000
details of individual directors’ emoluments and pension contributions can be found in the directors’ remuneration report on
page 31 these numbers have been audited
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 20p per ordinary share be paid in respect of the year ended 
30 september 2008 this will be accounted for in the 200809 financial year
d  dividends
b  profit and loss account
c  employee numbers and remuneration
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 £2959000 2007 £4221000
the audit fee charged within the profit and loss account amounted to £60000 2007 £57000
the average monthly number of employees all of whom were administrative staff
including executive directors employed in continuing activities during the year was 44 43
at 30 september 44 42
2008 2007
number number
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 68 69 notes to the company accounts
e  tangible fixed assets
cost
at 1 october 2007 789 287 1076
additions  24 24
at 30 september 2008 789 311 1100
depreciation
at 1 october 2007 650 230 880
charge for year 5 29 34
at 30 september 2008 655 259 914
net book value
at 30 september 2008 134 52 186
at 30 september 2007 139 57 196
long leasehold plant vehicles total
land  buildings  equipment
£000 £000 £000
the company has no assets held under finance leases or hire purchase agreements
shares at cost
at 1 october 2007 159373
additions 32
at 30 september 2008 159405
provisions
at 1 october 2007 and 30 september 2008 68880
net book value
at 30 september 2008 90525
at 30 september 2007 90493
subsidiary
undertakings
£000
details of the principal subsidiary undertakings are included in note q
the investment in subsidiaries is supported by their net asset values and their discounted expected future cash flows
g  debtors
due within one year
trade debtors 316 276
due from subsidiary undertakings 19110 24847
other debtors 1253 237
deferred tax 99 61
prepayments and accrued income 578 812
21356 26233
2008 2007
£000 £000
f  investments
93035 renew ra 2008 text page 69
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 69 notes to the company accounts 70
93035 renew ra 2008 text page 70
i  creditors amounts falling due within one year
trade creditors 621 109
corporation tax  3
other taxation and social security 987 840
due to subsidiary undertakings 97576 98561
other creditors 761 205
accruals and deferred income 9174 7272
109119 106990
2008 2007
£000 £000
k  share capital
authorised
100000000 2007 100000000 ordinary shares of 10p each 10000 10000
allotted called up and fully paid
59898927 2007 59898927 ordinary shares of 10p each 5990 5990
2008 2007
£000 £000
j  derivatives and other financial instruments 
currency exposure
the only exposure of the company to currency risk ie exposure to gains or losses on foreign exchange which would be
recognised in the profit and loss account is in respect of the us dollar bank account which is maintained by the company
in the uk and the unhedged portion of an intercompany loan at 30 september 2008 the unhedged portion of the
intercompany loan was 4934000 2007 4905000 at 30 september 2007 the balance on the us dollar bank account
was 1000 2007 1000
the company’s operations are denominated in sterling
hedges
the company has a loan of 3537000 2007 15537000 with barclays bank plc acting as an economic hedge against
the intercompany balance due by lovell america inc exchange losses of £317000 2007 gains £608000 were made
during the year on foreign currency borrowings this has been fully offset against exchange gains made on the
intercompany balance due by lovell america inc 
fair value of financial assets and liabilities
there are no material differences between fair value and the book value of the company’s financial assets and liabilities
h  cash at bank and in hand
cash at bank 18655 9893
2008 2007
£000 £000
cash at bank includes £00m 2007 £04m in respect of the net position on a sterling bank deposit of £20m 2007 £81m
and a connected us  loan of £20m us 35m 2007 £77m 155m translated at the year end rate used to hedge the
intercompany balance with the us subsidiary company
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 70 71 notes to the company accounts
share options
the company operates a share option scheme the renew holdings 2004 executive share option scheme
details of the scheme and options in issue are given below and in note l
the scheme has both an approved and an unapproved element the difference between the two elements is that the
approved scheme has the advantage of certain inland revenue approved tax benefits
both elements have the same general terms and conditions options issued under the scheme must be held for three years
before they can vest and become exercisable they must be exercised within 10 years from the date of grant 
vesting of options is dependent on the achievement of certain performance criteria which are established by the
remuneration committee at the point of grant in respect of the options granted in the 2006 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 the 2007 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 in respect of the options granted during the 2008 financial year 25 of the options
will vest if the group’s earnings per share for the year ending 30 september 2010 exceeds 125p for 100 vesting to
occur the group’s earnings per share for the year ending 30 september 2010 must be at least 16p
the earnings per share criteria in respect of the options granted during the 2006 financial year have been met and the
options are expected to vest on 7 june 2009
the scheme does not permit retesting of performance conditions and if the performance criteria are not achieved then the
options will lapse
share based payments reserve
frs 20 “share based payment” requires a fair value to be established for any equity settled share based payments fair
value has been independently measured by baker tilly chartered accountants using a blackscholes valuation model the
fair value determined at the grant date of the equity settled share based payments is expensed on a straightline basis over
the vesting period based on the company’s estimate of shares that will eventually vest
£136000 2007 £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 
k  share capital continued
l  reserves
at 1 october 2007 5893 3896 73 97 3876
transfer from profit and loss account for the year 2959
recognition of share based payments 136
dividends paid 1317
at 30 september 2008 5893 3896 73 233 5518
share capital share based
premium redemption revaluation payments profit  loss
account reserve reserve reserve account
£000 £000 £000 £000 £000
93035 renew ra 2008 text page 71
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 71 notes to the company accounts 72
93035 renew ra 2008 text page 72
l  reserves continued
options granted under the renew holdings 2004 executive share option scheme over the company’s ordinary shares at
30 september 2008 were as follows
date of grant 7 june 2006 8 january 2007 3 december 2007 total
awards outstanding at 30 september 2008
 directors 761904 522292 417960 1702156
exercise price and price at date of grant 525p 785p 1030p 
maximum option life 10 years 10 years 10 years 
assumed option life for purposes of valuation 3 years 3 years 3 years 
expected volatility 47 46 40 
dividend yield 100 150 180 
risk free interest rate 467 488 446 
value per option 205p 259p 280p 
there were 1284196 options outstanding at 1 october 2007 being those issued in june 2006 and january 2007 as
detailed above
profit for the year 2959 4221
dividends paid 1317 839
1642 3382
recognition of share based payments 136 97
at 1 october 2007 19825 16346
at 30 september 2008 21603 19825
2008 2007
£000 £000
annual commitments under noncancellable
operating leases expiring in
under one year  21 21 32
two to five years 80 12 92 255
five or more years 1379  1379 1662
1459 33 1492 1949
land  other total total
buildings 2008 2007
£000 £000 £000 £000
the company has capital commitments at 30 september 2008 of £nil 2007 £nil
m  reconciliation of movements in shareholders’ funds
n  capital and leasing commitments
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 72 73 notes to the company accounts
o  contingent liabilities
the company has guaranteed performance bonds in respect of certain contracts and leasing arrangements in the normal
course of business of its subsidiary undertakings
the company has guaranteed a letter of credit of £353000 2007 £607000 on behalf of lovell americainc
as part of the office of fair trading’s “oft” review of tender activities within the construction industry the company notes
that together with one of its current and one of its former subsidiaries it has been named in connection with alleged
infringements of uk competition law in the sector in the list of 112 construction companies in the oft’s statement of
objections the company and its current subsidiary have responded to the oft however it is not possible to predict the
effect of the oft’s investigation on the company’s financial position or results of its operations
p  defined contribution pension scheme
the assets of the defined contribution pension scheme are held in separate trusteeadministered funds the company
made contributions of £106000 2007 £48000 into the scheme during the year there is also £8000 2007 £4000 of
accruals relating to the scheme
on 1 april 2008 this scheme commenced winding up the assets are to be transferred to individual stakeholder plans
which the company has established for scheme members
q  principal subsidiary undertakings
renew holdings plc acts as the holding company of the group the principal activity of the group during the year was
construction and construction related activities
the principal subsidiary undertakings are shown below 
r  related parties
the company has a related party relationship with its key management personnel who are the main board directors b may
j samuel r harrison and j bishop whose total compensation amounted to £1022000 all of which was represented by
shortterm employment benefits
there were no other transactions with key management personnel in the year
incorporation  proportion of
principal place ordinary shares
of business held by the company
subsidiary undertakings
yjl ltd owned by renew holdings plc england and wales 100
allenbuild ltd owned by subsidiary england and wales 100
britannia construction ltd owned by subsidiary england and wales 100
walter lilly  co ltd owned by subsidiary england and wales 100
yjl infrastructure ltd owned by subsidiary england and wales 100
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
93035 renew ra 2008 text page 73
notes to the company accounts
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 73 74
93035 renew ra 2008 text page 74
annual general meeting 28 january 2009
results announcement of interim results  may 2009
preliminary announcement of full year results  november 2009
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
shareholder information
shareholder information annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 74 75
directors 
r harrison obe 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
directors and advisors
93035 renew ra 2008 text page 75
directors and advisors annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 75 93035 renew ra 2008 text page 76
notice of annual general meeting 76
notice is hereby given that the fortyninth annual general meeting of the company will be held at the offices of kpmg llp  
1 the embankment leeds ls1 4dw on 28 january 2009 at 1100am to consider and if thought fit pass resolutions 1 to 6
below as ordinary resolutions and resolutions 7 and 8 below as special resolutions 
the meeting will consider the following business
ordinary business
1 to receive and adopt the accounts for the year ended 30 september 2008 and the reports of the directors and 
auditors thereon                                               
2 to declare a final dividend of 2p per share                                    
3 to reelect john bishop who retires as a director in accordance with the company’s articles of association
explanatory note biographical details of john bishop are included in the directors’ report in the annual report 
and accounts
4 to approve the remuneration report for the year ended 30 september 2008    
5 to reappoint kpmg audit plc as auditors of the company
6 to authorise the directors to determine the auditors’ remuneration                                                                  
special business
7 that the power conferred upon the directors by article 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 and so that for this purpose the section 89 amount shall be
£299495 and the prescribed period shall be the period from the date of this meeting to the conclusion of the next annual
general meeting of the company or 28 april 2010 whichever is the earlier   
explanatory note by resolution 7 the directors are seeking renewal of the power to allot shares for cash for the
purposes of a rights issue or otherwise in connection with a rights issue limited to the issue of shares up to an
aggregate nominal value of £299495 being 5 of the issues ordinary share capital of the company at
25 november 2008 if given this power will expire at the company’s agm in 2010 or on 28 april 2010 whichever is
the earlier
8 to adopt with effect from the conclusion of the meeting new articles of association in substitution for and to the
exclusion of the current articles of association
explanatory note resolution 8 seeks members’ approval for changes to be made to the company’s existing articles
of association the principal changes proposed are summarised in the appendix to this notice                                                                 
by order of the board
b c feather llb
company secretary
25 november 2008
renew holdings plc 
registered office yew trees main street north aberford west yorkshire ls25 3aa
notice of annual general meeting
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 76 93035 renew ra 2008 text page 77
77 notice of annual general meeting
notes
1 a member of the company must be entered on the register of members at 6pm on 26 january 2009 or the date
which is two days prior to any adjourned agm in order to be entitled to attend and vote at the meeting as a member in
respect of those shares
2 a member entitled to attend and vote at the agm may appoint one or more proxies who need not be a member of the
company to attend and to speak and to vote on his or her behalf whether by show of hands or on a poll a member
can appoint more than one proxy in relation to the meeting provided that each proxy is appointed to exercise the rights
attaching to different shares held by him
3 proxy forms and the powers of attorney or other authority if any under which they are signed need to be deposited at
the office of the company’s registrars capita registrars the registry 34 beckenham road beckenham kent 
br3 4tu not later than 48 hours before the time appointed for the meeting completion of a proxy or any crest proxy
instruction as described in paragraph 4 below will not preclude a shareholder from attending and voting in person at 
the meeting
4 crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may
do so by using the procedures described in the crest manual crest personal members or other crest sponsored
members and those crest members who have appointed a service providers should refer to their crest sponsor
or voting service providers who will be able to take the appropriate action on their behalf 
in order for a proxy appointment or instruction made using the crest service to be valid the appropriate crest
message a “crest proxy instruction” must be properly authenticated in accordance with the specifications of
crest’s operator euroclear uk  ireland limited “euroclear” and must contain the information required for such
instruction as described in the crest manual the message regardless of whether it constitutes the appointment of a
proxy or is an amendment to the instruction given to a previously appointed proxy must in order to be valid be
transmitted so as to be received by the issuer’s agent id ra10 by 6pm on 26 january 2009 for this purpose the time
of receipt will be taken to be the time as determined by the timestamp applied to the message by the crest
application host from which the issuer’s agent is able to retrieve the message by enquiry to crest in the manner
prescribed by crest after this time any change of instructions to proxies appointed through crest should be
communicated to the appointee through other means 
crest members and where applicable their crest sponsors or voting service providers should note that euroclear
does not make available special procedures in crest for any particular message normal system timings and
limitations will therefore apply in relation to the input of crest proxy instructions it is the responsibility of the crest
member concerned to take or if the crest member is a crest personal member or sponsored member or has
appointed a voting service provider to procure that his crest sponsor or voting service providers takes such action
as shall be necessary to ensure that a message is transmitted by means of the crest system by any particular time in
this connection crest members and where applicable their crest sponsors or voting system providers are referred
in particular to those sections of the crest manual concerning practical limitations of the crest system and timings 
the company may treat as invalid a crest proxy instruction in the circumstances set out in regulation 355a of the
uncertificated securities regulations 2001 
5 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 of any adjournment thereof
6 in order to facilitate voting by corporate representatives at the meeting arrangements will be put in place at the meeting
so that i if a corporate shareholder has appointed the chairman of the meeting as its corporate representative with
instructions to vote on a poll in accordance with the directions of all of the other corporate representatives for that
shareholder at the meeting then on a poll those corporate representatives will give voting directions to the chairman
and the chairman will vote or withhold a vote as corporate representative in accordance with those directions and ii if
more than one corporate representative for the same corporate shareholder attends the meeting but the corporate
shareholder has not appointed the chairman of the meeting as its corporate representative a designated corporate
representative will be nominated from those corporate representatives who attend who will vote on a poll and the other
corporate representatives will give voting directions to that designated corporate representative corporate shareholders
are referred to the guidance issued by the institute of chartered secretaries and administrators on proxies and
corporate representatives wwwicsaorguk for further details of this procedure the guidance includes a sample form of
representation letter if the chairman is being appointed as described in i above
notice of annual general meeting
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 77 93035 renew ra 2008 text page 78
notice of annual general meeting 78
appendix
this appendix summarises the principal changes from the existing articles of association “current articles” to the
proposed new articles of association ”new articles” other changes which are of a minor technical or clarifying nature
and also some more minor changes which merely reflect changes made by the companies act 2006 have not been
outlined in the appendix
a copy of the new articles and a copy of the current articles marked to show the changes being proposed will be available
for inspection at the registered office of the company until the time of the agm and at 1 the embankment leeds ls1 4dw
from 15 minutes before the agm until it ends 
1 age limit for directors – provisions rendering any person ineligible for appointment as a director on account of his having
reached any specified age will be removed such provisions could now fall foul of the employment equality age
regulations 2006
2 directors’ conflicts of interest  the companies act 2006 sets out directors’ general duties which largely codify the
existing law but with some changes
under the companies act 2006 a director must avoid a situation where he has or can have a direct or indirect interest
that conflicts or possibly may conflict with the company’s interests the requirement is very broad and could apply for
example if a director becomes a director of another company or a trustee of another organisation the companies act
2006 allows directors of public companies to authorise conflicts and potential conflicts where appropriate where the
articles of association contain a provision to this effect the companies act 2006 also allows the articles of association
to contain other provisions for dealing with directors’ conflicts of interest to avoid a breach of duty 
the new articles give the directors authority to approve such situations and to include other provisions to allow conflicts
of interest to be dealt with in a similar way to the current position 
there are safeguards which will apply when directors decide whether to authorise a conflict or potential conflict first
only directors who have no interest in the matter being considered will be able to take the relevant decision and
secondly in taking the decision the directors must act in a way they consider in good faith will be most likely to
promote the company’s success the directors will be able to impose limits or conditions when giving authorisation if
they think this is appropriate 
it is also proposed that the new articles should contain provisions relating to confidential information attendance at
board meetings and availability of board papers to protect a director being in breach of duty if a conflict of interest or
potential conflict of interest arises these provisions will only apply where the position giving rise to the potential conflict
has previously been authorised by the directors 
3 directors’ indemnification  the companies act 2006 has in some areas widened the scope of the powers of a company
to indemnify directors and to fund expenditure incurred in connection with certain actions against directors in particular
a company that is a trustee of an occupational pension scheme can now indemnify a director against liability incurred in
connection with the company’s activities as trustee of the scheme in addition the existing exemption allowing a
company to provide money for the purpose of funding a director’s defence in court proceedings now expressly covers
regulatory proceedings and applies to associated companies
the new articles will confirm that the company may indemnify a director or purchase directors’ and officers’ liability
insurance to the extent permitted under the companies act 2006 another new provision will permit any director
concerned to be included in the quorum and to vote on any board resolution to approve such an arrangement 
notice of annual general meeting
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 78 93035 renew ra 2008 text page 79
79 notice of annual general meeting
4 electronic communications with shareholders  provisions of the companies act 2006 which came into force in january
2007 enable companies to communicate with shareholders by electronic andor website communications 
the new articles will allow the company to take advantage of these provisions at a future date if it is considered
appropriate to do so
the new articles will allow communications to shareholders in electronic form and permit the company to take
advantage of new provisions relating to website communications before the company can communicate with a
shareholder by means of website communication the relevant shareholder must be asked individually by the company
to agree that the company may send or supply documents or information to him by means of a website and the
company must either have received a positive response or have received no response within the period of 28 days
beginning with the date on which the request was sent 
should communication with shareholders by way of website communication be adopted by the company as set out
above the company will notify the shareholder either by post or by other permitted means when a relevant
document or information is placed on the website and a shareholder can always request a hard copy version of the
document or information
5 general meetings except agms held on 14 days’ notice  a new provision will allow the company to hold a general
meeting at which a special resolution is to be proposed on 14 days’ notice as permitted by the companies act 2006
rather than on 21 days’ notice as required by the current articles 
6 joint shareholders  a new provision will confirm that the giving of a document or other information by the company to a
joint shareholder with that shareholder’s agreement and vice versa will be effective so far as all the joint shareholders 
are concerned
7 polls  a new provision will allow the chairman of a shareholder meeting at his discretion to put a resolution to a vote on
a poll without first putting it to a vote on a show of hands the provision will not prevent a resolution from first being put
to a vote on a show hands should the chairman consider it appropriate to do so the provision is consistent with what
has become usual practice among companies over the last few years 
8 proxies  new provisions will be added relating to proxies one will confirm the right that proxies now have under the
companies act 2006 to speak at shareholder meetings another will allow the company to disregard weekends and
bank holidays when determining the time by which proxy forms must be lodged prior to a shareholder meeting 
9 quorum at shareholder meetings  a provision will be added requiring two different members to be present at a
shareholder meeting in person or through a corporate representative or a proxy in order for the meeting to be quorate
this provision will avoid the possibility of a shareholder meeting being quorate if it is attended by a proxy and a
corporate representative appointed by the same corporate member and no one else 
10 requisitions  provisions in the current articles that confer power on shareholders to requisition shareholder meetings
will be removed these powers are conferred on shareholders by the companies act 2006 and do not need to be
replicated in the new articles
notice of annual general meeting
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 79 93035 renew ra 2008 text page 80
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
britannia civil engineering
britannia house
staverton technology park
cheltenham
gloucestershire
gl51 6tq
tel 01452 859 880
yjl infrastructure
39 cornhill
london
ec3v 3nu
tel 020 7522 3220
walter lilly
waddon house
283 stafford road
croydon
surrey
cr0 4nn
tel 020 8730 6200
britannia construction
britannia house
staverton technology park
cheltenham
gloucestershire
gl51 6tq
tel 01452 859 880
allenbuild north west
jubilee house
waterside drive
wigan
wn3 5az
tel 01942 246 265
allenbuild south east
unecol house
819 london road
north cheam
surrey
sm3 9bn
tel 020 8335 4800
allenbuild north east
phoenix house
hawthorn park
coal road
seacroft
leeds
ls14 1pq
tel 0113 237 5600
seymour
group businesses 80
group businesses
annual report  accounts 2008
93035renewra2008textqxp93035renewra2008text  121208  1810  page 80 renew delivers specialist construction
services in engineering and building
through its branded businesses which
operate in robust and sustainable markets
36 independent auditors’ report
37 group income statement
37 group statement of recognised income and expense 
38 group balance sheet
39 group cash flow statement
40 notes to the accounts
66 company balance sheet
67 notes to company accounts
74 shareholder information
75 directors and advisors 
76 notice of annual general meeting 
80 group businesses 
01 financial highlights 
02 chairman’s statement 
03 chief executive’s review
05 financial review
06 review of operations
06 specialist engineering
14 specialist building
24 corporate social responsibility
26 directors’ report
30 directors’ remuneration report 
33 corporate governance 
35 statement of directors’ responsibilities 
produced by salient communications tel 01635 861112
93035 renew ra 2008 cover page ifc 93035 renew ra 2008 cover page ibc
93035renewra2008coverqxp93035renewra2008cover  121208  1338  page 2 annual report  accounts  2008
delivering
specialist
construction
services
renew holdings plc annual report  accounts  2008
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
93035 renew ra 2008 cover page obc 93035 renew ra 2008 cover page ofc
93035renewra2008coverqxp93035renewra2008cover  121208  1338  page 1


Summary:
 introduction
i am pleased to report a strong set of results
we are successfully meeting our strategic
objectives for our two main business
streams in specialist engineering we have
continued to grow revenue which was
bolstered by a full year’s contribution from
seymour while in specialist building we saw
a marked increase in revenue and particularly
in operating profits prior to exceptional items
against a background of increasingly difficult
market conditions the results again illustrate
the quality and sustainability of earnings with
our forward order book indicating an increased
level of work in our specialist sectors
results
group revenue for the year ended 
30 september 2008 was £3906m 
2007 £3481m a 12 increase over the
corresponding period last year profit before
income tax for the year prior to exceptional
items and amortisation charges was up 29
to £95m 2007 £74m profit after tax
exceptional items and amortisation charges
was £53m 2007 £73m
at 30 september 2008 the group’s net cash
position stood at £282m 2007 £244m
as has been well documented conditions 
in the house building market which is 
the principal end market for our land
remediation business have worsened
considerably over the last six months 
we are also seeing weaker market conditions
for our nonspecialist and retail businesses
which jointly accounted for 46 of 
specialist building revenue in 2008
as stated in our preclose announcement on
1 october 2008 the board has taken
decisive action to address these issues by
realigning the land remediation activities to
address the more robust regional civil
engineering market whilst retaining its land
remediation capability in specialist building
the group has reduced capacity by 15
whilst these actions have resulted in an
exceptional charge in 2008 of £15m for
redundancy costs the resultant saving in
annual costs will be in excess of £5m
the group’s order book at 30 september
2008 stood at £219m 2007 £252m 
with pleasingly 79 represented by repeat
order work the 13 reduction which is
predominantly in nonspecialist areas is 
in line with the implemented capacity
reductions this reflects our emphasis on
project selectivity and quality of earnings as
we seek to continue to improve percentage
operating margins in these more challenging
market conditions 
dividend
in accordance with the group’s progressive
policy a final dividend of 20p per share
2007 12p is being proposed this takes
the total dividend for the year to 30p 
2007 18p a 67 increase over last year
the dividend will be paid on 23 february
2009 to shareholders on the register as at 
30 january 2009 and in accordance with
accounting standards will be accounted for 
in the 2009 financial year the shares will
become exdividend on 28 january 2009
growth strategy
our declared strategy of focusing on two
distinct business streams specialist
engineering and specialist building remains
in place
our aim is to increase revenue in specialist
engineering both organically and by
acquisition with operating margins of at least
4 in specialist building our aim is to
continue to increase operating margins with 
a mediumterm target of 2 currently our
specialist building margin stands at 17
our mediumterm objective remains to
develop a specialist construction business
with overall operating margins of 25 and
with specialist engineering providing 33 
of revenue
outlook
market conditions are more challenging but
the group is operating from a position of
strength supported by a strong balance
sheet with cash resources available to take
advantage of carefully considered
opportunities which may arise our
management team led by our chief executive
brian may is very experienced and i am
confident in their ability to deliver excellent
performance in the difficult economic climate
the impact of the decisive action taken in
september to realign and reduce capacity
and the continued resilience of our specialist
markets gives the board confidence that we
can continue to grow the group’s operating
margin percentage albeit on reduced levels of
activity in 2009
roy harrison obe
chairman
25 november 2008
chairman’s statement 02
chairman’s statement
£74m
£95m

£46m
profit before tax £m
10
0
2006 2007 2008
50
0
£244m
£282m
2006 2007 2008
£194m
net cash £m
figures given prior to
exceptional items and
amortisation charges
annual report  accounts 2008
93035 renew ra 2008 text page 2
93035renewra2008textqxp93035renewra2008text  121208  1809  page 2