Renew Holdings Acquires Full Circle Group for €60 Million

In a recent report, engineering services firm Renew Holdings plc announces its acquisition of Full Circle Group for €60 million. The deal is expected to enhance earnings and provide clear revenue visibility in subsequent years, positioning Renew favorably in the growing onshore wind services market.

Date: 07-10-2024

AI Rating: 7

The acquisition of Full Circle Group by Renew Holdings plc is a strategic move that is anticipated to positively impact earnings in the first full year of ownership. This deal enhances Renew's footprint in the high-growth onshore wind services sector, which is crucial given the increasing emphasis on green energy initiatives across Europe.

In terms of financial performance, Full Circle generated revenue of 25.8 million euros in 2023, along with adjusted EBITDA of 5.4 million euros and adjusted EBIT of 4.6 million euros. This performance highlights the viability of Full Circle's operations and the potential for Renew to leverage this acquisition for increased revenue streams moving forward.

Furthermore, Renew has secured a significant portion of Operations and Maintenance contracts, with around 85 percent already in place, leading to a revenue visibility of approximately 75 percent for FY25. Such metrics underscore Renew's proactive approach to maintaining stable and predictable cash flows while taking advantage of future opportunities in the market.

The overall sentiment from the Chief Executive Officer, Paul Scott, reflects a positive outlook aimed at supporting the green energy transition, which is likely to resonate well with investors focused on sustainable prospects. The increase in the Revolving Credit Facility (RCF) to 120 million pounds provides Renew with additional liquidity to manage its operations effectively while pursuing new growth avenues.

Stocks: RNWH.L