Brian May, chief executive of Renew, has said he will reserve judgment on the merits of this week鈥檚 pre-Budget report

The specialist engineer and builder is set to benefit from the move by chancellor Alistair Darling to bring forward 拢3bn of public investment originally intended for the 2010/11 financial year. This money will be spent by April 2010 on social housing, infrastructure and schools.

May said the report contained no dramatic news and he wanted to know how much new money was being put on the table.

He was speaking after Renew announced a 28% rise in pre-exceptional, pre-tax profit from 拢7.4m to 拢9.5m in the year to 30 September 2008.

The post-exceptional figure of 拢6.7m takes account of a one-off pension contribution of 拢1.2m and redundancy costs of 拢1.5m. The group laid off 103 people in September as a result of the economic slowdown, which represented 15% of its staff.

Turnover was up 12% from 拢348m to 拢391m, which was principally split between its specialist building (拢295m) and engineering (拢93m) divisions.

May said the engineering arm鈥檚 turnover contribution would grow from 24% to 33% by 2011 and said he hoped to make an acquisition before September 2009. 鈥淲e have a number of targets but we鈥檙e only prepared to pay at certain levels.鈥�

May pointed to the fact that Renew鈥檚 operating margin had increased from 1.5% to 1.9% as a good sign. He said: 鈥淭he target is 2.5% and we鈥檙e well-positioned to see growth on margins. Our specialist divisions are resilient.鈥�

Kevin Cammack, an analyst at Singer Capital Markets, said the results were as expected. He said: 鈥淭he problems are in Renew鈥檚 land remediation division and in its non-specialist general building arm, including retail.鈥�

Renew in numbers

拢28.2尘 Net cash balance (2007: 拢24.4m)
1.9% Pre-exceptional operating margin
拢219尘 Order book (2007: 拢252m)
79% Repeat business in order book

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