Renew Holdings PLC to acquire water engineering services firm J Browne for
The firm also said first-half results will be ahead of the previous financial year and in-line with management’s expectations.
PLC () announced it has agreed to buy J Browne Group for £29.5mln and noted half-year results will be in line with expectations.
The acquisition will be funded by a combination of cash and the group’s existing revolving credit facility provided by and Natwest.
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J Browne is a water-focused engineering services business based in Enfield, North London, operating throughout the South of England for Thames Water, Southern Water, Affinity Water and South East Water.
It delivers infrastructure and non-infrastructure through long-term agreements and also provides utility connections to the developer market in London & the Home Counties.
In the year ended 31 March 2020, J Browne reported profit before tax of £5.5mln on turnover of £79.2mln, while in the year to 31 March 2021 it forecast turnover of £63.3mln because of the transition to a new five-year price control period in the water sector.
Renew said the acquisition, which will immediately add to group earnings, represents an “excellent strategic fit”, adding material scale to its water business and bringing in new clients.
The water sector is an attractive market with £51bn committed by Ofwat to deliver service improvements as part of the current five-year investment period which runs to 2025, the engineer said.
The firm also updated investors on trading and said first-half results will be ahead of the previous financial year and in-line with management’s expectations.
Net debt and cash generation are also in line with forecasts.
The group’s order book continues to be underpinned by long-term framework positions, including new awards during the first half of the year.
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