In a trading update to the City today it said: “Trading within the rail sector has been impacted by the slow start to the Control Period (“CP7”), which commenced in April 2024.

“This lower-than-expected level of activity has continued in recent weeks. Consequently, trading in the Group’s Rail sector is now behind management expectations.

“Given the ongoing challenges with delay and deferment in our Rail activities and more recent uncertainty over timing of the commencement of a number of renewals programmes, the Board anticipates full year trading will be below market expectations.”

Operating profit is now expected to be below the forecast of £79.1m but still ahead of last year’s £70.9m.

Renew added: “Having operated in this sector through previous control period transitions, we believe that this situation will normalise as we move through the cycle.

“Our clients remain committed to record levels of expenditure in renewing and maintaining the national rail network to satisfy their regulatory obligations.”