Renew Share Discussion Threads

[wfcreserves] 12/10/2024 12:02

Beat me to it.

Not mentioned was the water industry which is in sore need of investment which should also aid Renew.

[davebowler] 12/10/2024 08:59

ii Company of the yearThis year: Renew Holdings (RNWH)Last year: Alpha Group International (ALPH)Engineering services provider Renew Holdings RNWH0.37% was on the shortlist last year and its steady performance makes it a good choice for this award. Core markets are road, rail and nuclear infrastructure with the focus on regular support and maintenance spending rather than large one-off projects. Renew has combined organic growth with acquisitions and over the years has moved into new infrastructure markets.A recent move is into the electricity transmission sector. Renew is paying up to £26 million for Excalon, which provides construction services for high voltage and extra high voltage infrastructure. The next five-year funding cycle for distribution network operators is worth £22.3 billion.The most recent acquisition takes Renew into providing repair and maintenance services for onshore wind turbines in the UK and Europe. It is paying £50.5 million for Full Circle Group, which is based in the Netherlands. This provides a foothold in Europe for a business that is predominantly UK-based.Renew has been particularly active since it was put on the shortlist, including the above acquisition. It confirmed that full-year revenues and operating profit are ahead of expectations, while also selling its remaining specialist construction business, which was a core division two decades ago.The 2023-24 operating profit will be slightly higher than the £70.1 million consensus forecast. Net cash will be higher than the previous consensus of £22.1 million. The results will be announced on 26 November.

[harrogate] 09/10/2024 09:08

It is an interesting deal. Not sure this area was ever flagged as an area of interest but I think the key to the last 2 pieces of news - this deal and the sale of specialist building is that they drive operating margin % higher and we probably need to see that to get rated higher from here. I have moaned about the dividend in the past but if they keep spending their cash to grow that is fair enough

[rivaldo] 09/10/2024 09:02

Nice upturn - news of yesterday's upgrades seems to be spreading today.

RNWH have diversified a number of times in recent years, - roads, water, airports, rail electrification - but all have succeeded. Obviously wind turbines are a new area, but the key is that the modus operandi remains exactly the same, i.e "repair, maintenance and monitoring services", which are straight out of RNWH's appealing operating model.

[dozey4] 08/10/2024 21:04

This has been my largest and most successful holding for years (since 2006) - mind you the competition is not great. RNWH have carved out a niche and way of business second to none, and skilfully expanded to all areas of infrastructure with well researched takeovers.

I don’t see the Full Circle takeover as a good strategic fit, but rather as a risk. A danger of management over-reaching away from what must already be a complex web of activity. The market gave a very muted hurrah too.

Of course I hope my pessimism is misplaced.

[rivaldo] 08/10/2024 11:12

Here's a link to a source for the upgrades:



"Berenberg raises Renew Holdings price target to 1,350 (1,250) pence - ’buy’

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Deutsche Bank raises Renew Holdings target to 1,305 (1,235) pence - ’buy’"

[rivaldo] 08/10/2024 09:06

Cheers bigbigdave.

And also today, Berenberg have raised their price target to 1350p per the news wires:

"Berenberg raises Renew Holdings price target to 1,350 (1,250) pence - 'buy'"

[bigbigdave] 08/10/2024 08:02

Hiya, from here.....

[cwa1] 08/10/2024 08:00

Morning bbd

Thanks for that. May I ask where you sourced that from/do you have a link?

Cheers

[bigbigdave] 08/10/2024 07:50

*DEUTSCHE BANK RAISES RENEW HOLDINGS TARGET TO 1305 (1235) PENCE - 'BUY'

[wfcreserves] 08/10/2024 01:34

But won’t that depend on whether the business is continued to be run in Belgium, with main operation in the Netherlands, as an autonomous company accounting in euros or brought back to the UK? And the company is reportedly looking to expand so the present 22% could very well increase. Hopefully so.

[igoe104] 07/10/2024 15:40

78% for full circle revenues are from the UK anyway. So not a major issue..

[wfcreserves] 07/10/2024 15:04

Going to be interesting to see how they deal with foreign exchange issues given the number of countries involved.

[rivaldo] 07/10/2024 14:10

The news page for Full Circle is extremely busy, with loads of long-term contract wins etc:



I suspect post-demerger from EWT Full Circle wasn't part of AtlasInvest's plans, whereas "EWT is the world’s leading supplier of wind turbines" - so FC were maybe too small for them, but a great fit for RNWH.

[wfcreserves] 07/10/2024 13:27

"In 2021, Full Circle was established as a dedicated multi-brand O&M provider following our demerger from EWT. Today, Full Circle is headquartered in the Netherlands, with offices in the UK, Italy, Greece, and France, servicing over 700 turbines across Europe, North America, and South Asia."

From the Full Circle website. covering most of the world it seems.

In the Lovell years entry into the US market was made which didn't go well. But Renew are a different beast now.

[grahamburn] 07/10/2024 12:40

Interesting also that this is, from memory, their first acquisition of a foreign firm. It's strange that there isn't any explanation about why it was being sold off by the holding company.

[wad collector] 07/10/2024 11:35

They certainly seem to be following the model of business growth by accumulation; it has been a steady run of takeovers. Hope they don't swallow anything too big on the way!

[rivaldo] 07/10/2024 11:11

Good points made in the Yorkshire Post this morning about the new government's increased commitment to onshore wind - no doubt a contributing factor to the timing of today's acquisition:

"It follows the new Labour Government lifting a de facto ban on new onshore wind projects in the planning system in England."

"Renew CEO Mr Scott has previously told The Yorkshire Post that he sees “enormous̶1; opportunities for the company in major infrastructure projects designed to help the UK achieve net zero in the coming decades.

He said in late 2022 that rail electrification work and the rollout of electric vehicle charging points across the country as petrol and diesel cars are phased out are among the schemes that have potential for the group.

In its first months in government, Labour has set up a new state-owned energy investment company, GB Energy."

"Officials also handed out contracts for a new wave of green power projects in early September, including onshore and offshore wind and solar farms, which will generate enough power for 11 million homes, in its annual auction."

[rivaldo] 07/10/2024 07:42

Terrific news:

- earnings enhancing and at €60m entirely from RNWH's own cash resources
- increases still further RNWH's high forward visibility of earnings, with 75% of revenues for next year already secured
- instantly transforms RNWH's involvement in renewables via repair, maintenance and monitoring services for onshore wind turbines
- once again has an attractive servicing model with 7 years average contract length and high renewals
- European presence could enable cross-selling of RNWH's other services

Looks a perfect addition imo, and with huge growth potential over the next few years.

[igoe104] 07/10/2024 07:29

Looks like a excellent acquisition. 10 x EBITDA. Margins 14% and revenue expected to grow substantiallly over the next few years.( Around 50%,)

[harrogate] 07/10/2024 07:12

Well that came from left field! Bit more expensive than previous deals but new area. They seem to be accelerating the strategy

[harrogate] 04/10/2024 15:31

If they have sold it for nothing with the buyer picking up any latent defects costs that would be a fair deal. It is those that have cost millions since they sold Allenbuild. I think this might finally stop some people trying to compare RNWH with Contracting companies now we are 100% specialist engineering

[wfcreserves] 04/10/2024 15:27

They say only a nominal sum presumably as they are covering any liabilities outstanding known or unknown?

Size Holdings is newly formed company a month ago. But the rest of the group have been operating for a while. (See Size Group Construction Ltd)

YJ Lovell Building have still not been allowed to be dissolved.

Products with sold with long lives can have long outstanding problems it seems.

[jeff h] 04/10/2024 14:19

Shades of GVC giving away their Turkey subsidiary.

Size Holdings a newly formed company.

I imagine Walter Lilly was hawked around potential buyers as Renew has talked about disposing of Specialist Building for a few years, seemingly no takers wanting to pay anything for it.

Allenbuild still incurring losses over 10 years after they "disposed" of it.