Renew Share Discussion Threads

[rivaldo] 07/4/2017 11:03

FYI this was Finncap's view after Monday's trading update:

"High ROCE and strong cash flow
BUY

Renew has confirmed that trading for the first half of the year is in line with Board expectations and ahead of last year. We make no changes to our forecasts and reiterate our view that Renew has attractive and relatively low-risk growth prospects.

The vast majority of Renew's work is on large, long-term, non-discretionary frameworks providing repair and maintenance services that are fundamental to the UK's energy, gas, water, telecoms and rail infrastructure.

With ROCE significantly ahead of the peer group, a strong balance sheet (a net cash position is expected at September 2017) and the prospect of reinvesting cash flow into enhancing acquisitions, we reiterate our Buy rating and 586p target.

Essential services efficiently delivered. In our note on 25 January 2017 we highlighted that Renew provides essential services into infrastructure frameworks, has high barriers to entry, strong cash flow and rising margins."

[rivaldo] 06/4/2017 09:22

DB will bring loads of experience and contacts, not only as regards Go-Ahead, but also TfL - where there is currently lots of new business to be won for RNWH, particularly for the new acquisition Giffen.

I'm grateful he's bringing his knowledge to bear on RNWH's behalf - I really don't care about issues at Go-Ahead :o))

[irenekent] 06/4/2017 08:09

Do we really want this guy Brown? He can't even make his trains run on time. His judgement should be called into question. Sort the RMT first, then he may have some contribution to make. We can always vote him down.

[hvs] 05/4/2017 11:19

Thank you rivaldo for the above.

Perhaps the monkeys at RMT will have something to say.

[rivaldo] 05/4/2017 07:32

RNWH's Seymour Civil Engineering have won work on a "major" new development in Yorkshire:



"2:26pm 3rd April 2017

Work on a major new development in north Northallerton – including a link road and bridge between Darlington and Stokesley roads – gets underway this week.

Construction teams from Persimmon Homes and Taylor Wimpey have moved on to the site to begin preparing the land for work to begin on the initial 300 homes and the road.

It means a plan to create around 1000 new homes, a school, retail space, sport and recreational areas and sites for businesses – and the new road – will finally come to fruition....

.....The new homes will be constructed by Persimmon and Taylor Wimpey with the first phase of road construction overseen by Seymour Civil Engineering."

[wad collector] 04/4/2017 22:30

Hmm, welcome aboard....
It does rather raise the wider question about directors who sit on multiple boards. Yes they have a good network and experience outside one company , but do they really put much into each one?
Answers to Gordon Brown...

[grahamburn] 04/4/2017 12:10

hvs. Perhaps this piece in the Business Commentary column of The Times will give you a clue - albeit a little "tongue in cheek":

____________________

Go ahead, why not?
David Brown, the Go-Ahead boss, has had hardly anything on lately. Not running Southern rail only takes up so much time for the man whose group owns 65 per cent of operator Govia Thameslink Railway. And one look at the Go-Ahead share price shows you how relaxed he can be: it’s down a mere 35 per cent in 12 months.

So no wonder he’s decided now is the ideal time to take on another job. He’s just signed up to become a non-executive director of Renew, an engineer worth £280 million or two and a half times less than Go-Ahead. Even better, he chose the very day Southern’s drivers rejected, for the second time, a peace deal put to them by union Aslef. That all points to more strikes down the track, on top of the roughly 40 days lost in a year after action from them and the RMT’s conductors.

The passengers will be delighted, then, to see Mr Brown pocketing about £35,000 a year moonlighting at another company. He says it’ll all be “manageable221; and the Go-Ahead board “want me to do these things to expand my knowledge”. In which case, the board, chaired by Andrew Allner, needs its collective head examined. Right now, Go-Ahead should be Mr Brown’s sole focus. There’s one way for him to renew his reputation and it’s got nothing to do with an engineering company.

[hvs] 04/4/2017 08:54

Cant understand why the moneys at the RMT are so vocal about new board appointment
especially since they are useless at runnung the tube system or trains.

Is the RMT full of RED NUTTERS ????

[hvs] 04/4/2017 08:51

Cant understand why the monkeys at the RMT are so vocal about new board appointment
especially since they are useless at runnung the tube system or trains.

Is the RMT full of RED NUTTERS ????

[rivaldo] 04/4/2017 06:49

Analyst comment FYI:



Extract:

"The appointment was announced alongside a positive trading update and the group said trading is ahead of the same time last year.

A​nalyst Guy Hewitt at FinnCap said: ​“Renew has confirmed that trading for the first half of the year is in line with ​b​oard expectations and ahead of last year. ​“​;

We reiterate our view that Renew has attractive and relatively low-risk growth prospects.

“The vast majority of Renew’s work is on large, long-term, non-discretionary frameworks providing repair and maintenance services that are fundamental to the UK’s energy, gas, water, telecoms and rail infrastructure.

“​W̴3;e reiterate our Buy rating and 586p target.​“

Renew said that as previously indicated, it anticipates reporting a modest net debt position when it announces interim results on May 23 as a result of the acquisition of Giffen Holdings last October. The board expects to report a net cash position by this September.​"

[rivaldo] 03/4/2017 10:55

Finncap today reiterate their Buy and 586p target.

[cockerhoop] 03/4/2017 09:18

Aren't they all subsidiaries of Go-Ahead Group though?

[gengulphus] 03/4/2017 09:13

And if I've counted correctly, he's a director of 77 other companies according to that announcement... His "wealth of additional knowledge and experience" is spread very thinly!

Gengulphus

[rivaldo] 03/4/2017 07:18

Good trading update today - succinct and to the point as usual, with trading ahead of last year and net cash on the way despite the acquisition of Giffen.

Plus an impressive sounding new non-exec appointment:



"Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces the appointment of David Brown as a Non-Executive Director, with immediate effect.

David Brown is currently Group Chief Executive of The Go-Ahead Group Plc, a position he has held since 2011. Prior to that, Mr Brown was Managing Director of Surface Transport for Transport for London and Chief Executive of Go-Ahead's London Bus business.

Renew's Chairman, Roy Harrison OBE said: "I very much welcome David to our board. He will bring a wealth of additional knowledge and experience, particularly in the transport sector in which we have substantial operational involvement."

[qs99] 31/3/2017 11:56

check out NMD if you like this share Riv....looks like legacy issues have been dealt with IMO, worth a look anyway, DYOR.

[rivaldo] 31/3/2017 09:08

Finncap today reiterate their Buy and 586p target:

[mayers] 29/3/2017 20:03

wad collector

Sounds like some "serious discussion" after what is after all a considerable fall in share price . No doubt as usual my comments will be rejected but I would be interested in the views of other realistic opinion.

[wad collector] 28/3/2017 11:29

Tempting , but I am keeping most of my powder dry ; I still think the whole market is vulnerable to a correction which would bring RNWH down , especially as the price is not strongly supported on current earnings . It is more about potential than current. You wouldn't buy it for the 1.8% current yield.

[mfhmfh] 28/3/2017 09:29

top-op opportunity?

[santangello] 26/3/2017 17:00

Thank you Rivaldo. Yum yum :)

[rivaldo] 26/3/2017 07:50

From yesterday's Times - £450m to introduce digital signalling should nicely benefit RNWH's latest acquisition, Giffen Group:



"Digital signals will put more trains on line

Victorian-style signalling will be stripped out of busy commuter lines in the southeast under plans to reduce delays (Graeme Paton writes).

Network Rail is preparing to introduce digital technology on key routes into London by 2024 to improve punctuality and increase the number of trains that can be run.

Some £450 million was given to the rail industry in the autumn statement to develop the technology that brings signalling equipment into the train cab rather than at the trackside. It allows far more trains to be safely run closer together.

Mark Carne, the chief executive, said that plans were being drawn up to introduce the systems within Network Rail’s next funding period — from 2019 to 2024 — on lines such as Southern, Southeastern or South West Trains.

Traditional trackside signalling, above, has been a feature of Britain’s railways for at least 150 years. More than 500 signal boxes are still in operation."

[rivaldo] 23/3/2017 14:57

Cheers Glaws2.

[glaws2] 23/3/2017 13:57

Trading update already announced to be on 3 April.