{"id":822099,"date":"2025-01-26T06:12:01","date_gmt":"2025-01-26T12:12:01","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/26\/renew-blames-network-rail-delays-for-reduced-profit-forecast\/"},"modified":"2025-01-26T06:12:01","modified_gmt":"2025-01-26T12:12:01","slug":"renew-blames-network-rail-delays-for-reduced-profit-forecast","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/26\/renew-blames-network-rail-delays-for-reduced-profit-forecast\/","title":{"rendered":"Renew blames Network Rail delays for reduced profit forecast"},"content":{"rendered":"
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\"generic-rail_2020-1024x683.jpg\"<\/p>\n

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Engineering services contractor Renew has said its profit is set to take a hit due to delays in Network Rail projects.<\/p>\n

A trading update from Renew Holdings this morning warned that its adjusted operating profit for the year to 30 September 2025 will be lower than initially expected, although still above last year\u2019s level of \u00a363.6m.<\/p>\n

It said: \u201cTrading within the rail sector has been impacted by the slow start to the Control Period (CP7), which commenced in April 2024.<\/p>\n

\u201cThis lower-than-expected level of activity has continued in recent weeks[…]. Consequently, trading in the group’s rail sector is now behind management expectations.\u201d<\/p>\n

The statement added that there had been \u201cdelay and deferment\u201d on its rail activities and uncertainty over a number of renewals programmes.<\/p>\n

\u201cHaving operated in this sector through previous control period transitions, we believe that this situation will normalise as we move through the cycle.<\/p>\n

\u201cOur clients remain committed to record levels of expenditure in renewing and maintaining the national rail network to satisfy their regulatory obligations,\u201d it said.<\/p>\n

CN<\/em>\u2019s sister title New Civil Engineer<\/a><\/em> reported in September about concerns at Network Rail that its finances had deteriorated and route directors had been warned that tight financial management was required in the first year of CP7.<\/p>\n

Factors including \u201cadverse weather, continuing issues with Wales & Western and higher overall levels of asset failures\u201d were blamed for its financial underperformance.<\/p>\n

In November<\/a>, Renew revealed a \u201crecord financial performance\u201d for the year to 30 September 2024, posting \u00a31.1bn in turnover and a pre-tax profit of \u00a360.2m.<\/p>\n

Renew was ranked 25th in the CN100 2024 table of top contractors<\/a> based on its 2022\/23 accounts, with pre-tax profit of \u00a362.8m from turnover of \u00a3921.6m.<\/p>\n

This morning\u2019s trading update said the firm\u2019s performance in the water sector was ahead of expectation, and recent successes included landing slots on two new five-year frameworks for Affinity Water.<\/p>\n

It said its order book stood at a \u201crecord level\u201d of \u00a3905m as of 31 December 2024.<\/p>\n

A Network Rail spokesperson said: \u201cThe start of CP7 has seen higher activity and spending compared to the beginning of CP6, though not yet at CP6’s peak levels. We’ve been transparent about our 2019-24 spending profile and its impact on our supply chain. <\/span><\/p>\n

“As an industry, we have significant improvements to make in train performance, which we are balancing along with enhancement and renewal works. We remain committed to working closely with our suppliers in CP7 and maintaining as much transparency as possible going forward.”<\/span><\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Ian Weinfass<\/p>\n","protected":false},"excerpt":{"rendered":"

Engineering services contractor Renew has said its profit is set to take a hit due to delays in Network Rail projects. A trading update from Renew Holdings this morning warned that its adjusted operating profit for the year to 30 September 2025 will be lower than initially expected, although still above last year\u2019s level of<\/p>\n","protected":false},"author":1,"featured_media":822100,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2566,4271],"tags":[],"class_list":{"0":"post-822099","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blames","8":"category-renew"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/822099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=822099"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/822099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/822100"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=822099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=822099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=822099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}