Renew Share Discussion Threads

[glaws2] 20/5/2015 16:23

Read all about it ......

Investor interim presentation now on web site at hxxp://www.renewholdings.com/media/pdf/Renew%20Holdings%20plc%20-%20Interim%20Results%2031%20March%202015.pdf (eay to get to on main website if this link doesn't work and see the interview at hxxp://brrmedia.co.uk/event/138651/

[broadwood] 19/5/2015 16:24

Renew Holdings raises dividend as first half profit grows



Renew Holdings reported a gain in pre-tax profit for the first half of this year on rising revenue, and said it was increasing the interim dividend by 50%.
The engineering services company posted a pre-tax profit of £7.7m up 7% from £7.2m in the same period last year.

Revenue came in at £252.1m, up 21% from last year's £207.6m, as revenue from the engineering services segment rose 24% to £209.8m.

The company's order book grew 28% to £471m and it said that expected revenue for the second half was secured.

Renew raised the interim dividend to 2.25p a share from 1.50p last year.

"The group's position as a leading provider of engineering support services to the UK's energy, environmental and infrastructure markets has continued to strengthen by focusing on our clients' long-term operational spending programmes," said chairman, Roy Harrison.

"Our strategy has delivered excellent organic growth which, together with our record order book, provide the board with confidence that the group's results will meet market expectations for the full financial year."

[igoe104] 19/5/2015 15:03

Reliable Renew hikes divi by 50%




By Lee Wild | Tue, 19th May 2015 - 13:44


Reliable Renew hikes divi by 50%
There's nothing not to like about Renew's (RNWH) half-year results. The AIM-listed engineering services firm, which works for water companies, Network Rail, and at Sellafield nuclear power station, had a record six months and increased the dividend by 50%. Expected revenue for the second half is already fully secured and customers keep coming back for more.
Adjusted pre-tax profit jumped by 19% during the six months ended March to £9.8 million on revenue up by a fifth at £252 million. Strip out a pair of acquisitions in the second half of 2014 and profit still rose by 10%. Crucially, the order book is up 28% to £471 million, which means forecast full-year revenue of £475 million is in the bag.

Renew makes most of its money - over 90% of profit - from engineering services. The division grew adjusted operating profit by 24% during the period to £9.7 million with operating margin steady at 4.6%. Management aims to hit 5% by 2017, "a sensible and achievable target," chief executive Brian May told Interactive Investor. The order book swelled by 25% to £382 million.

The much smaller specialist building division, which provides structural engineering services to upmarket residential property developments in London and the South East, still made £1 million, even after margins returned to normal levels following final account settlements the period before
"Share price upside remains for this reliable double digit performer," says Nick Spoliar at WH Ireland. "Margins are low single digit but increasing. Order book rises are very encouraging. RNWH continues to trade well and is a market leader in its specialities."

Renew shares are up a third in the past month and fast approaching their 327p all-time high, but Spoliar has just upgraded his price target to 400p from 375p. "The shares…look good to us for a further run upwards given the factors internal and external that are benefitting the company. A UK orientated engineering stock seems like a good buy at the moment - and on a longer term basis, in this case."

It's not hard to see why Renew has averaged organic growth of 11.5% per annum over the last eight years, and trades on a relatively modest 12.6 times earnings forecasts for the year to September, dropping to 11.7 times for 2016. The prospective yield rises to 2.3% and 2.5% respectively. Earnings-enhancing acquisitions are possible, too, although unlikely this half

[glaws2] 19/5/2015 14:12

Doh ! I had in my mind that Wad was referring to another acquisition.

I see Numis have re-iterated buy with 335p target unchanged.

[harry the haddock] 19/5/2015 12:24

all time high

[glaws2] 19/5/2015 12:13

Wad - what is ATH ?

[wad collector] 19/5/2015 11:48

ATH must be on the horizon now.

[hvs] 19/5/2015 10:25

rivaldo
19 May'15 - 09:00 - 7727 of 7728 0 0

WH Ireland have increased their target price to 400p.....

Thank you riv.

That will do me very nicely.

[igoe104] 19/5/2015 09:41

You can see more buying from fundies with the 50% divi rise, plus no currency worries with RNWH.

[rivaldo] 19/5/2015 09:00

WH Ireland have increased their target price to 400p.....

[gswredland] 19/5/2015 08:26

Excellent!

[harrogate] 19/5/2015 08:25

I think the interesting thing here is what it means for the full year. Until last year with Dawlish they had always had a H2 bias and looking at organic growth in order book at 15% + and the fact that all H2 revenue is now already booked in I could see upgrades coming our way now for 2015 and thus 2016. Better than I was expecting and I think that maybe they have underestimated organic growth in the 2015 and 2016 numbers which might be upgraded. Also the dividend was slated for 6p for this year but that now looks as if it will be 7p+. All in all a strong performance and any acquisitions would be good news as debt reduces. The normal caveats on the balance sheet apply here and those that don't like it will have some ammunition I would have thought.

[jlo10] 19/5/2015 08:22

Looks like 2015 trading forecast will be exceeded
As always with Renew the short term financial position is delicate
But if trading continues like this then it is fine

[fangorn2] 19/5/2015 08:14

Decent results and a chunky rise in interim divi of 50%. :)

[o1dsmokie] 19/5/2015 07:57

Far too much hype on this company, expect a fall back after the news.

[rivaldo] 19/5/2015 07:56

Terrific results, especially the secured income and outlook for the year.

[opodio] 19/5/2015 07:53

wtf!!! £6m of "other intangibles" on the balance sheetm up from £3m

Net cash inflow from continuing operating activities also HALVES to £5,163

[opodio] 19/5/2015 07:50

lacklustre

[tradermel] 19/5/2015 07:32

Very satisfying set of results and a nice divi too

[hvs] 19/5/2015 07:12

Fantastic resukts.

R J Harrison OBE, Chairman said: "The Group's position as a leading provider of engineering support services to the UK's Energy, Environmental and Infrastructure markets has continued to strengthen by focusing on our clients' long term operational spending programmes.

"Our strategy has delivered excellent organic growth which, together with our record order book, provides the Board with confidence that the Group's results will meet market expectations for the full financial year."

50% increase in divi.

[hvs] 19/5/2015 07:12

Fantastic resukts.

R J Harrison OBE, Chairman said: "The Group's position as a leading provider of engineering support services to the UK's Energy, Environmental and Infrastructure markets has continued to strengthen by focusing on our clients' long term operational spending programmes.

"Our strategy has delivered excellent organic growth which, together with our record order book, provides the Board with confidence that the Group's results will meet market expectations for the full financial year."

50% increase in divi.

[intermale] 19/5/2015 07:11

Much as expected, I am out after decades.

[saj3] 19/5/2015 07:09

Long term hold for me!