The company said that changes to water industry framework arrangements in AMP5 had made it 鈥榠ncreasingly difficult for this small business to trade profitably鈥�. Renew acquired the Durham-based business just four years ago.
C&A will be accounted for as a discontinued business in the year to 30 September 2012 and a trading loss of 拢0.3m, together with 拢0.3m of redundancy costs and 拢1.4m of non-cash asset write downs including 拢0.9m of goodwill, will be incurred.
Other restructuring and redundancies across the group has already costs the company 拢1.3m in the six months to 30 September 2012. However, trading has been satisfactory and when annual results are announced on 27 November they will be in line with expectations, the board said.
Paul Scott, managing director of Shepley Engineers, Renew鈥檚 nuclear and process business, has been promoted to engineering services director of Renew, reporting to the board through chief executive Brian May.
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