Renew Investors - RNWH

Renew Investors - RNWH

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Stock Name Stock Symbol Market Stock Type
Renew Holdings Plc RNWH London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-19.00 -2.74% 675.00 16:35:21
Open Price Low Price High Price Close Price Previous Close
696.00 662.00 696.00 675.00 694.00
more quote information »
Industry Sector
CONSTRUCTION & MATERIALS

Top Investor Posts

Top Posts
Posted at 07/12/2022 14:29 by grahamburn
There is a 30 minute presentation by the CEO and CFO on their website, so not sure why other posters are not seeking it out. Not much new in it over and above what was in the statement - and no Q & A's - but still useful to hear their tone and see how the present themselves and the company.

OK it wasn't flagged up in the statement but IMO investors should regularly look at a company's website (just to keep up with its activities etc).

Posted at 07/12/2022 07:36 by harrogate
I see the results slide pack is on the website. It is extremely disappointing that they did not do a presentation to investors this year. They did one last year and this is a backward step in terms of communication with investors from a Company who are already among the least communicative. Poor form really in this day and age when everyone cried out for more involvement from shareholders
Posted at 30/11/2022 08:49 by rivaldo
Nice review on Investors' Champion, highlighting the "impressive 29% return on equity" and "glorious" cash flows!

Https://www.investorschampion.com/channel/blog/testing-the-stress-levels

"Renew – excellence, as always

Renew (AIM: RNWH), the leading Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, announced excellent full year results and news of an acquisition.

Renew's activities are focused into two business streams: Engineering Services, which accounts for over 95 per cent of the Group's adjusted operating profit, focuses on the key markets of Rail, Infrastructure, Energy (including Nuclear) and Environmental which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.

Specialist Building focuses on the High Quality Residential, Landmark and Science markets in London and the Home Counties.

For the year ending 30 September 2022 revenue rose 7.3% to a record £849m while operating profit was up 21.7% to £50.0m.

Network Rail is a significant strategic customer for the Group and during the period Renew became the third largest provider of engineering services to Network Rail nationally.

It entered the Highways market via its acquisition of Carnell in January 2020. The UK Government has committed to an unprecedented level of spending on England's strategic road network as part of its second Road Investment Strategy ("RIS2").

The order book of £775m offers decent visibility.

Post tax profit of £40m for the year represents an impressive 29% return on equity. Renew generates attractive returns from a balance sheet of negative tangible assets. That could be worrying for some, but it certainly hasn’t disappointed over the years and unlike Victoria covered above, free cash flow was a glorious £54m with Renew closing the year with net cash of £20m.

Renew also announced the acquisition of Enisca Group for £15.6m. Enisca is an engineering business operating in the water and environmental sector with headquarters in Cookstown, Northern Ireland."

Posted at 29/11/2022 13:48 by rivaldo
The IC moves RNWH up to a Buy:

Https://www.investorschronicle.co.uk/news/2022/11/29/renew-maintains-track-record/

"Renew maintains track record
Earnings beat analysts' expectations
November 29, 2022

The chief executive of Renew Holdings (RNWH), Paul Scott, wasn’t surprised that chancellor Jeremy Hunt reaffirmed the government’s commitment to its £600bn infrastructure spending plans during the recent Autumn Statement, although he was somewhat relieved.

“There were a number of references throughout the statement that gave us some comfort that commitment will prevail,” he said.

Like others in the contracting market, Renew’s share price had taken a knock following September’s disastrous 'mini' Budget. Although it is less exposed to big capital spending programmes than its peers, there could have been knock-on effects if other commitments – such as electrifying certain rail lines – had been shelved. As it is, there seems little for investors to worry about.

Full-year earnings came in 9 per cent higher than consensus estimates, margins improved despite cost pressures and cash generation was strong – it finished the year with net cash (excluding leases) of £20.2mn, from debt of £13.7mn a year earlier.

It has already put this to use, spending £15.6mn on the purchase of Enisca, a company that provides mechanical, electrical, control, instrumentation and automation services to the water industry. This is a service line Renew doesn’t currently offer and Enisca is already a joint venture with the J Browne water contracting business bought last year.

In May, we moved Renew’s shares to a hold, concerned about the potential impact of higher wages on margins and employee turnover. Although still an issue, it has handled things well – holding two pay reviews a year rather than one, offering discretionary bonuses and weighting increases towards lower-paid workers. These seem to have done the trick.

Renew’s shares also remain reasonably priced at 11 times broker Numis’s forecast earnings of 60p. At that price, they offer good, defensive exposure to what should be a steady, but growing market. Back to buy."

Posted at 29/11/2022 08:50 by rivaldo
Shore Capital this morning say Buy with a 930p target.

They note that:

"Renew has consistently had a very high level of visibility with c.70% of current year forecast sales usually in the order book. This has helped the group meet or beat consensus profit forecasts in every year since the group came into its current form in 2006."

They conclude:

"Valuation and recommendation

We believe Renew presents an attractive opportunity for investors to benefit from the UK government’s commitment to spend £600bn on infrastructure from 2022 to 2027. Given the nature of Renew’s variable, cost-plus contracts, we believe it is very well placed to pass on inflationary pressures to customers. We also believe it is protected against economic downturns given that its revenue is driven by the public sector.

We continue to believe Renew has a lower risk profile than the market perceives, possibly due to associations with peers servicing much larger fixed contracts. Renew’s ability to control costs and resilience during the pandemic was much greater than the majority of Industrials and worthy of a greater re-rating, in our view.

We maintain our BUY recommendation and 930p DCF-based fair value (40% upside). The shares have fallen 22% YTD after a very strong two-year run, presenting an attractive entry point. As of yesterday's closing price, the shares trade on 10x our upgraded FY23F EPS forecast and 6x on an EV/EBITDA basis."

Posted at 21/11/2022 07:46 by rivaldo
Tipped by Peel Hunt with a 900p target:

Https://citywire.com/funds-insider/news/expert-view-just-eat-burberry-halma-renew-and-ceres/a2402912#i=5

"Peel Hunt: Renew Holdings underappreciated 

Engineering group Renew Holdings (RNWH) is seeing continued momentum but it isn’t appreciated by investors, says Peel Hunt.

Analyst Andrew Nussey retained his ‘buy’ recommendation and target price of 900p on the stock, which added 1% last week to close Friday at 636.5p having fallen 22% this yeare.

He said the October update from the group triggered a 3% full-year 2022 earnings per share upgrade and management ‘continues to enhance earnings quality and quantity’.

‘We anticipate another confident outlook statement given the visibility and growth opportunities,’ said Nussey.

He said the shares trade on 11.5 times forecast earnings for next year 2023 with anticipated cash in 2024 that is equivalent to 11% of its market value.

‘We continue to believe that the organic cash compounding and M&A growth characteristics, supported by a strong management team, are not fully appreciated by investors. The forthcoming results could be an important catalyst,’ he said."

Posted at 20/7/2022 08:32 by wad collector
Thanks for that link though it is an advert from Octopus , only mention is

Renew Holdings Plc
Renew Holdings plc provides specialist engineering services to maintain and develop energy, environmental and infrastructure assets. The holding company operates a number of subsidiary businesses that provide engineering services to the UK infrastructure market. Key sectors include highways, rail, nuclear, water, and telecoms.

In FY 2021, the business generated £791 million in revenue and £41.13 million in profit. Past performance is not a guide to the future. Octopus has been an investor in the business since 2007 and is currently its largest shareholder.

Posted at 18/5/2022 08:59 by rivaldo
Agreed - with 26.2p EPS in H1, plus

- the usual H2 seasonality
- an entire H2 unaffected by the pandemic
- the large water, rail and road infrastructure frameworks now kicking in

there's a very good chance imo that broker forecasts will be beaten.

Shore Capital say Buy, noting:

"Renew has consistently had a very high level of visibility with c.70% of current year forecast sales in the order book. This has helped the group meet or beat consensus profit forecasts in every year since the group came into its current form in 2006."

"We believe Renew represents a good opportunity for investors seeking to benefit from the UK Government's commitment to invest £640bn in infrastructure from 2020 until 2025. Given the nature of the Group's variable, cost-plus contracts we believe Renew is very well placed to pass on inflationary pressures to customers. We also believe it is protected against economic downturns given that its revenue is driven by the public sector".

Posted at 03/4/2022 15:09 by rivaldo
Shore Capital have a 930p valuation per their post-AGM update, so lots of upside.

And "scope for upgrades" too

Extracts:

"Forecasts

We expect to leave our forecasts unchanged but see scope for upgrades. Renew has consistently had a very high level of visibility with c70% of current year forecasts sales usually in the order book. This has helped the group meet or beat consensus profit forecasts in every year since the group came into its current form in 2006."

"Valuation and recommendation

We believe Renew represents a good opportunity for investors seeking to benefit from the UK Government's commitment to invest £640bn in infrastructure from 2020 until 2025."

"We maintain our BUY recommendation and 930p DCF-based fair value (36% upside). The shares have fallen 18% YTD after a very strong two-year run, presenting an attractive entry point. As of yesterday's closing price, the shares trade on 12.5x our FY22F EPS forecast and 8.4x on an EV/EBITDA basis."

Posted at 09/2/2022 16:40 by igoe104
I will be, wad collector. I very rarely sell anything this day of a age. If its good enough investment plan for investors like John Baron, Warren Buffet, Lord Lee etc its good enough for me.
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