QTS, the rail maintenance business Alan McLeish started with a £300 loan and sold for £80 million, has helped its new owner enjoy a strong first half.

Renew Holdings said the integration of Lanarkshire-based QTS has gone extremely well following the acquisition of the business in May.

QTS has performed in line with expectations leaving Leeds-based Renew’s engineering division on track to beat budget.

“We expect to report further growth in our Engineering Services order book, underpinned by our extensive portfolio of long-term frameworks contracts,” said Renew.

The acquisition of QTS allowed Renew to ramp up its presence in the specialised rail maintenance market, in which operators provide services on long term contracts.

The cash deal cemented Mr McLeish’s standing as one of Scotland’s most successful entrepreneurs.

After leaving school with no qualifications, Mr McLeish worked in forestry to support his young family.

He started QTS as Quality Tree Surgeons in 1991 with £300 borrowed from his mum to buy a chainsaw.

Mr McLeish won his first contract from the old British Rail. QTS progressed from helping operators to keep vegetation under control into providing a range of support services across the UK.

At the time of the deal with Renew, Mr McLeish said the transaction would provide opportunities for QTS to expand its market share. He expected the firm to benefit from synergies created by working with Renew’s operations in other highly regulated sectors.

A spokesperson for Renew said the company retained all members of the QTS management team and employees following the deal and had no intention of making changes for the foreseeable future.

Renew provides support services on assets ranging from nuclear energy plants to luxury housing blocks

The Aim-listed group said it is in line to record results for the year to September 30 in line with market expectations with improvement in operating profit and margin