Business
Pre Close Trading Update- Cor
Pre Close Trading Update- Cor.
About this update from Renew Holdings Plc
[{"type":"text","content":"\n RNS Number : 5828H Renew Holdings PLC 06 November 2008 \n \nThis replaces announcement 7591E released at 07:00 on 1 October 2008. The correct date for Renew Holdings' annual results is Tuesday 25 November 2008.\n\nRenew Holdings plc \n('Renew' or the 'Group')\n\nPre-close Trading Update \n\nFollowing the end of its financial year on 30 September 2008, Renew is providing the following update on trading. \n\nThe Board confirms that the Group has continued to trade satisfactorily during the second half of the year and the Board expects that this will result in a profit before intangible amortisation, exceptional items and taxation for the year in line with market expectations of £9.4m. The Group's profits remain demonstrably cash backed and the net cash balance at the end of September 2008 was in excess of £27m.\n\nIn the last few months, conditions in the house building market, which is the principal end market for our Land Remediation business, have worsened considerably. Additionally, the Group is identifying weaker market conditions ahead for non-specialised building which represented 27% of its Building turnover in 2007 financial year. \n\nConsequently, the Board has decided to realign the Land Remediation activities to address the more robust regional civil engineering market, whilst retaining its land remediation capability but on a smaller scale. In Specialist Building, the Group has reduced capacity by 15% in line with the reduction in its forward order book. \n\nThese actions will result in an exceptional charge in 2008 of £1.5m for redundancy and other restructuring costs. The resultant savings in annual costs will be over £5m.\n\nThe Board is also making an extraordinary charge of £1m in connection with the statutory debt on the employer arising from the winding up of the British Building & Engineering Pension Scheme. The winding up of this historic scheme commenced in 1999 and is expected to be completed in the near future. \n\nLooking forward, ...