Renew Share Discussion Threads

[hvs] 03/6/2016 10:39

For anyone interested RNWH has been recommended once again today by Questor.
Daily Telegraph Business section.

Very positive write up.

[hvs] 03/6/2016 10:38

For anyone interested RNWH has been recommended once again today by Questor.
Daily Telegraph Business section.

Very positive write up.

[hvs] 03/6/2016 10:38

For anyone interested RNWH has been recommended once again today by Questor.
Daily Telegraph Business section.

Very positive write up.

[hvs] 03/6/2016 10:37

For anyone interested RNWH has been recommended once again today by Questor.
Daily Telegraph Business section.

Very positive write up.

[santangello] 03/6/2016 09:43

Progressive and in tune with the continuing growth of this wonderful company. A more defensive and reliable AIM stock you will struggle to find.Be interesting to see what the roadtrip to Institutions etc yields. Climbing back towards highs slowly by the looks of it, and still uber cheap at these levels.Many thanks once again Rivaldo.

[rivaldo] 03/6/2016 09:29

Broker forecasts for the year ending in 4 months' time appear to have edged upwards, with consensus now being 27.35p EPS compared to 26.9p EPS not long ago.

WHI go for 27.5p EPS and Numis 27.2p. With consensus 8p dividends.

For the year starting on 1st October, consensus is 30.81p EPS, with a 9p dividend.

[tudes100] 29/5/2016 23:08

Thanks for posting Riv, looking to get back in here after selling out last year which on reflection was a little rash. A dip down below 350 again would make me very happy as an entry point.

[nurdin] 28/5/2016 08:25

Excellent report Rivaldo,cheers.

[jeff h] 27/5/2016 20:51

A few interviews:-

[rivaldo] 27/5/2016 15:55

Hi graham. As I pointed out in my post, HH have actually increased by almost 700,000 shares since their last holding RNS.

The 100k is only the most recent increase taking them over the 14% threshold.

[grahamburn] 27/5/2016 15:32

rivaldo.

It's only 100k increase and, don't forget, the RNS refers to their "discretionary clients" so is presumably connected with rebalancing of pre-determined pro rata holdings in given sectors/stocks.

[penpont] 27/5/2016 14:31

Thanks from me too rivaldo. It may be that Brexit plus the sell in May effect has depressed the price here, as with quite a few smaller caps. I'm hoping and expecting that to correct itself later in the year.

[wad collector] 27/5/2016 13:53

Sorry Rivaldo , no offence intended.

[rivaldo] 27/5/2016 13:43

RNS out - Hargreave Hale continue to buy. They've increased since their last holdings RNS in November from 8.08m shares to the current 8.75m, or 14%:

OT : wad collector is correct. I made it all up.

What a ridiculous post. It's not even remotely funny either....given wad's recent post when he mistook the prelims for the interims perhaps it's better to stay quiet and only post when there's something sensible to say.

[wad collector] 27/5/2016 13:37

....providing he really did go :-)

[santangello] 26/5/2016 15:25

Thank you Rivaldo, very informative and comprehensive and importantly, reassuring with a large slice of positivity for the future....

[glaws2] 26/5/2016 15:12

Many thanks Rivaldo

[rivaldo] 26/5/2016 14:28

Here's a few jottings from the meeting - and the interim presentation can be seen here:



- the profit split is normally 47% or 48%/52% for H1/H2. By implication, with 13.31p EPS in H1 alone RNWH is extremely well placed to meet - and possibly beat - the two forecasts of 27.5p EPS and 27.2p EPS to 30th September

- RNWH are aiming short-term to get operating margins up to 4.5% from H1's 4%. This alone would add another £2.7m to profits based on H1's annualised revenue

- the 18% dividend rise in H1 suggests an 8p dividend for the year

- RNWH have examined a number of acquisitions. These often take years to come to fruition at the right time and price. More are on the way, but timelines are impossible to predict. The CEO was asked about the problematic telecoms and gas acquisitions, and he replied with optimism about them both, noting that consolidation in telecoms and the slow pace of gas contract awards couldn't be predicted and are being overcome by adapting or stepping up the pace

- RNWH pay their supply chain one week AFTER they get paid, with obvious cash flow benefits. The largest customer pays in 28 days, with the majority on 28-40 days. The negative £4.2m working capital movement in H1 should entirely reverse in H2 to be neutral overall

- of the £3billion nuclear decommissioning programme to be spent, 90% will be at sites where RNWH work (14 of the 17 NDA sites), and 70% will be at Sellafield, where RNWH have a VERY strong position via Shepley Engineers as the largest contractor with 11 frameworks

- RNWH are the sole provider on the £30m Magnox nuclear framework at 10 sites, with potential for later decommissioning work

- 3 new nuclear opportunities are being actively developed, including Moorside, which is adjacent to Sellafield, so very favourable for RNWH

- Shepley's new appointment to the Courtyards framework at the Palace of Westminster is a biggie imo - at some point Westminster will have to be entirely overhauled, and this will cost £billions

- the average contract value for large infrastructure contracts is £300k, so very low risk of material overruns

- RNWH had no infrastructure work in Scotland 4 years ago. It displaced the incumbent, and has won £50m of work

Glaws2, no-one specifically asked about the Balance Sheet, although the FD confirmed that any term loans would be paid off in the next year or so.

If anything else occurs to me I'll post it later, but if any other attendees are watching I'm happy to accept corrections!

[glaws2] 26/5/2016 10:52

Rivaldo - thanks for the initial reply and look forward to the follow up. Out of interest did anyone ask the FD about the balance sheet ?

[santangello] 25/5/2016 15:27

Many thanks Rivaldo (and to dd for his work organising) for your initial reply following the meet up.All indicators look as positive as ever here. Interesting to read about the investors roadtrip the company has lined up, that should be very interesting indeed.

[wad collector] 25/5/2016 13:55

Melf thanks for pointing that out.

[rivaldo] 25/5/2016 13:40

I met RNWH this morning (thx davidosh). More detail later, but in summary all extremely positive.

RNWH are in the middle of an extensive period of meeting investors - two weeks of touring the City, the North and Scotland, which is more than they usually due at the interim stage.

The current price looks cheap to me. I wouldn't be surprised to see more institutional buying coming in after this series of presentations.

[melf] 25/5/2016 11:28

wad collector, the 13p was for H1 2016 (6 months).

[wad collector] 25/5/2016 09:39

With EPS of only 13p , a lot of the value here is prospective, and most of us do hope for significant future profit gains . Thus a small profit rise was unlikely to keep the momentum ; I doubt we are going to see much share price progress for a while.
"Sit on hands time" I reckon.

[santangello] 24/5/2016 16:57

hvs....the intelligent and serious investors will....you can be sure of that.