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Renew Holdings Share Discussion Threads
Showing 8501 to 8523 of 8525 messages
|AMCO are busy at present. Here they're carrying out upgrades on Liverpool Centra tunnel for Network Rail - but they're saving Network Rail £9.5m on this job alone by using new scaffolding techniques and robotic equipment. Impressive:
"Adrian Bullock, Project Manager at AMCO Rail, Network Rail’s contractor on this scheme, said: “We are doing 160 linear metres of tunnel line repair, putting a steelwork arch in with 300mm of concrete, which basically will see the roof become maintenance-free for the next 120 years. “Usually this work would cost £14m but doing it with this new system with a live operational rail underneath allows this work to do it for £4.5m. That’s a saving of £9.5m for taxpayers – all while allowing trains to keep running into Liverpool Central and avoiding disruption to the travelling public.”|
|Cheers Glaws2 - here's a direct link:
"Theresa May's infrastructure investment plans could be huge for these stocks
Theresa May may not have formally announced plans for a large infrastructure investment push but with the PM evidently less austerity-focused than her predecessor and trade groups lobbying hard, it's looking likely that some sort of infrastructure stimulus package is on the way for the UK.
Whether the investment is in railways, highways or power plants, one major beneficiary will be Renew Holdings (LSE: RNWH). Renew owns a variety of subsidiaries that provide engineering and long-term support services for a variety of customers including Network Rail, major utilities and telecoms.
While there are plenty of companies out there that would benefit from major infrastructure investments such as construction firms or materials manufacturers, Renew has several characteristics that make it an attractive long-term investment to me.
First, by making maintenance services contracts a large part of its business, Renew protects its downside by ensuring long-term revenue visibility throughout the business cycle. This is evident in the order book, which increased 9% year-on-year over the past six months to £515m, roughly equal to full-year 2015 revenue.
Second, Renew has a very healthy balance sheet. Net debt at the end of the last reporting period stood at a very low £4.2m and the company expects to have net cash at the end of the year. Having low or no debt to service further protects the company during economic downturns and also gives Renew ammunition for acquisitions.
With revenue growing even without a major government-led investment push, operating margins increasing consistently and a healthy balance sheet, Renew is one cyclical on my watch list come the next eventual economic downturn."|
|Infrastructure investment will benefit RNWH
|And not that far off breaching a 7 yr high.|
|Good to see 400p being paid now by buyers.|
|Looks like AMCO have been extremely busy around the year end, what with the Severn Tunnel above and two other jobs around Stoke and Yorkshire which have flashed up on news items:
"Stoke Gifford Transport Link (SGTL, a.k.a. ‘By-Pass’)
Griffiths expect to be able to take possession of the new railway bridge (being constructed by AMCO on behalf of Network Rail) in early October."
"The CP5 framework contract has meant CML working with other suppliers, enabling partners and Network Rail engineers to work together to generate efficiencies through planning, design and implementation. In its most simplistic form, this has involved the shared use of access roads and temporary works, such as the embankment stabilisation works that CML carried out in conjunction with the underbridge reconstruction by Amalgamated Construction (AMCO) at Staid Lane, on the Sheffield and Barnsley Line."|
|Here's a portion:
The company is scheduled to release its full-year results on Tuesday 22 November 2016, so this is a good time to review its trading prospects. Analysts at Numis Securities and WH Ireland both predict the company will deliver pre-tax profit of at least £21m and EPS north of 27p in the 12 months to end September 2016 to underpin a 14 per cent hike in the dividend to 8p a share. On this basis, the shares are rated on 13.7 times earnings and offer a 2.2 per cent dividend yield. That's a modest rating for a company targeting an operating margin target of 4.5 per cent in the 12 months to end September 2017, implying a 30 basis point improvement on the year just ended.
That margin expansion is worth flagging up because the margin gain on £550m of revenue for the 2017 financial year accounts for the majority of the £2.7m operating profit growth that WH Ireland and Numis have factored into their forecasts. So, if Renew increases revenues by 5 per cent as analysts suggest it will, and boosts margins to the 4.5 per cent target, then pre-tax profits and EPS could surge by 14 per cent to £24m and 31.1p, respectively, in the 12 months to end September 2017. The combination of 15 per cent EPS growth and a forward PE ratio below 12 offers an attractive PEG ratio of well below one. A forward dividend yield of 2.5 per cent will appeal to income investors based on the payout per share rising by a further 12 per cent to 9p.
Furthermore, with the benefit of a strong seasonal working capital cash inflow in the second half just ended, Renew could have a year-end net cash position of around £6m, reversing a £4.8m net debt position a year earlier, thus increasing the possibility of selective earnings accretive bolt-on acquisitions. Not that the existing business is short of organic growth as a £500m plus order book highlights Renew’s status as a quality, UK business focused on infrastructure (nuclear, rail, water) with robust characteristics.|
|Sorry Rivaldo no further details - just saw the headline on a tweet|
|Cheers Glaws2 - any further details?|
|Believe the rise might have been triggered by Simon Thompson (IC) tipping with a target of 420p|
|Yep, delayed reaction to the good news.|
|Looks like share price has finally woken up after yesterday's good news. Curious delay this morning despite the FTSE100 fireworks.|
|Nice close today.
Brief but interesting analyst comment:
"Analysts at Numis said in a note: “While management does not make any comment about outlook, we believe the group will be well-placed for ongoing requirement for non-discretionary work in its key markets this year and could also see some acceleration of work in the rail sector in particular as an area where there seems to be increased focus under the Tories as a pump prime at the time of the Autumn Statement.”
They added that Mr Scott is not expected to alter the strategic direction or business model of the group, which has enabled it to grow 13-fold over 11 years without any equity funding."|
|Judging by the closing share price, the market appears to have expected the news provided today.I'd echo the positive sentiments re Brian May.|
"..transformed the Group from a loss making building contractor into a leading business in Engineering Services and delivered an increase in market capitalisation from GBP17m to GBP229m without recourse to equity financing"
Absolutely outstanding! I salute you Mr May!
Makes for a nice change on AIM too.|
|Results understated as usual.
Unfortunately we have to wave goodbye to Brian May. I hope he has a long and happy retirement.
|Beautifully understated as ever.....what a consistent, reliable and growing diamond of a company.....|
|Yes agreed.I also like the fact that margins on the up now...|
|Excellent news - trading is in line with forecasts, plus the group has net cash now, so should be ready for more acquisitions:
We're now in a year with forecasts of 30.8p EPS and a 9p dividend, so the current share price is just too cheap imho given the fundamentals and potential.|
|I doubt that and see post 8236!!|
|ITS fireworks TOMORROW|
|Let's hope I am correct !!|
|Correction grately accepted Harrogate.|