Renew Share Discussion Threads

[wad collector] 22/11/2016 11:18

Good enough to keep the share price slowly ticking upwards I suspect. Hold and prosper.

[rivaldo] 22/11/2016 10:46

Numis have increased their price target to 450p (from 390p):

[rivaldo] 22/11/2016 09:01

The current year P/E is only 12.4, and the potential growth is huge when you consider Hinkley Point, Sellafield, HS2 etc etc.

[deadly] 22/11/2016 08:45

Good, but at a P/E of 15 and yield 2% not cheap these days.
So no great move today.

[rivaldo] 22/11/2016 07:32

Results out and at the top end of expectations with 27.43p EPS and an 8p dividend, plus almost £5m net cash (spent post year-end on the new acquisition).

Forecasts for this year are just over 32p EPS, which looks within reach given the increased order books, acquisition etc:



An optimistic outlook, and order books nicely up, particularly Engineering Services.

Looks like gas and telecoms continue to improve too (and Allenbuild has finally been closed off).

[deadly] 21/11/2016 21:52

Someone's optimistic about tomorrow....

[rivaldo] 21/11/2016 21:23

Nice finish, with a final buy at 412.25p - looks like new highs (just)?

[rivaldo] 18/11/2016 12:32

I was previously unaware that Forefront Utilities have previously carried out work on both Buckingham Palace and the House of Commons:



We already know about the huge refurbishment to be carried out at Westminster, so Forefront should be at the (ahem) forefront for additional work to be carried out. And similarly today we also learn that Buckingham Palace is to have a £369m refurbishment:

[rivaldo] 16/11/2016 09:31

News of Clarke Telecom managing the build-out of two new "massive" masts in the Forest of Dean for Vodafone and Telefonica:

[rivaldo] 15/11/2016 10:22

Certainly does against WH Ireland's 470p target!

With current year consensus now at almost 32p EPS, and some very big multi-year prospects in view as outlined previously, RNWH should continue to thrive assuming its contracts continue to be well monitored.

[santangello] 15/11/2016 06:44

....even based on historical numbers, 420p looks conservative ?

[glaws2] 14/11/2016 12:55

Simon Thomson in the printed IC recommends (among others) RNWH - buy at 375 with 420 target (lifted from twitter).

[rivaldo] 14/11/2016 12:29

Encouraging to see the newly acquired Giffen Group announcing last month that it was one of only seven companies newly appointed to carry out large building projects worth over £2m for London Underground:



The same article notes that earlier this year Giffen were similarly one of only seven companies also appointed to carry out large civil engineering work worth over £2m for London Underground.

[rivaldo] 07/11/2016 12:37

FYI a couple more comments from WHI's 1/11 note following the new acquisition and their increased 470p target price:

"· Complementary deal This morning’s deal from RNWH, the acquisition of Giffen
Holdings, shows the company in a good light. We see the new business
complementing the existing rail business within RNWH (accounting for over a third of the engineering activity) by providing skill-sets which will enable the company to win contracts in areas that were previously closed to it, notably where the maintenance of a tunnel or bridge required power installation as part of the package from RNWH.

· Numerous opportunities This is exciting in itself but we believe that with CP6
coming down the tracks, there will be substantial further opportunities both with
existing Network Rail customers and with potential new clients in the regions. With
Giffen on board, the company also has the capability to develop in new areas such as signalling maintenance, which has obvious similarities to the existing model of
maintaining or repairing assets which are vital to the functioning of the network.

· Upgrades on acquisition following recent inline update We have upgraded
FY2017E as below, assuming a 5% operating margin on Giffen / £20m revenues."

[rivaldo] 07/11/2016 07:23

Results will be out on 22nd November - we already know they'll be good, so hopefully we'll see a run-up beforehand (and afterwards!):

[rivaldo] 02/11/2016 07:22

Further positive analyst comment....



"A​nalyst Nick Spoliar at WH Ireland said: “Renew’s acquisition of Giffen Holdings, a specialist in mechanical,​ ​electrical and power services in the rail context, caused us to upgrade our forecasts​ ​by 4​ per cent​ and our target price from 450p to 470p correspondingly.R03;“ ​

He said the deal is “extremely complementary​“​ and​ ​represents no departure from R​enew​’s previous successful model.

​It also opens​ ​up access to contracts which were previously barred to R​enew on account of its​ ​previous lack of these specialist power skills in its core rail maintenance​ ​business̴3;. Mr Spoliar described this as ​a major plus.

“​The first acquisition under the new CEO, and only the second from private equity since the AMCO deal, we view this as a reminder of the qualities which have enabled the company to progress through good times and bad in the past decade. Buy,” added Mr Spoliar.

​Analyst Howard Seymour at Numis added: “We have argued for some time that the Renew business model has enabled double-digit organic growth in predictable and key non-discretionary infrastructure markets, while the strong balance sheet will provide funding for complementary earnings enhancing acquisitions.

“The acquisition of Giffen provides clear evidence of this and we upgrade our estimates by 4 per cent for the current year to take account of what looks to be a very sensible and timely acquisition to expand Renew’s existing Rail operations.

“Post acquisition Renew remains in a net cash position and we therefore believe both organic and acquisitive potential remains significant.​“

Earlier this month Renew ​reported growth in revenue and profit for the year to September 30 and said full year results will be in line with market expectations​."

[rivaldo] 01/11/2016 11:34

As well as the new 470p target price, WHI have also increased their EPS forecast for the current year to 31.7p EPS, with a 9p dividend.

Re-rating time.

[glaws2] 01/11/2016 10:54

WH Ireland have upgraded their forecasts for by 4% and their target price to 470p.

[wad collector] 01/11/2016 09:34

The metamorphosis continues ; might turn into a railway station eventually!

[rivaldo] 01/11/2016 07:10

Acquisition time!

Good acquisition for £7m from cash, so will undoubtedly enhance earnings to the tune of £0.7m PBT or more, and in RNWH's core area of rail too which is good to see.

Plus the chance of cross-selling re London Underground:

[wad collector] 31/10/2016 10:23

Added at 370 , seems like an opportunity to me , though only looking to trade with these ; suspect it will be back to £4 soon.

[rivaldo] 14/10/2016 14:00

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:



Extract:

"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.”

[rivaldo] 14/10/2016 07:32

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."

[glaws2] 13/10/2016 15:10

Infrastructure investment will benefit RNWH

money.aol.co.uk/2016/10/13/theresa-mays-infrastructure-investment-plans-could-be-huge-for-these-stocks/

[wad collector] 10/10/2016 10:31

And not that far off breaching a 7 yr high.