Renew Share Discussion Threads

[rivaldo] 02/10/2017 12:14

The IC say Buy - I assume they will be following this brief update up with a full Tip Update since this is one of their main tips:



"Renew Holdings (RNWH) issued a brief but positive trading update this morning, indicating it had traded in line with expectations for the year to September 2017. It increased revenue, operating profit and operating margin, as well as moving into a net cash position. Shares are up 5 per cent on the news. The shares are down on our buy tip, but this update indicates the business is continuing to improve. Buy."

[broadwood] 02/10/2017 11:24

Renew Holdings said it expects to report results for the full year in line with market expectations.

Accordingly, it anticipates an increase in operating margin alongside growth in both revenue and operating profit.

The company also expects to move into a net cash position.

[harrogate] 02/10/2017 11:23

I don't think there us any guesswork as the base EPS number they are using for 2017 and 2018 is the same - it simply comes down to the multiples they are applying to that. Fincap are using 17 which looks way too high to me for a company that is only forecasting 6% growth in EPS in 2018, But WHI looks too low at 12 for a company that has such massive revenue visibility and such a great track record of hitting the numbers. Hence for me a hold

[harrogate] 02/10/2017 09:37

Interesting that WHI reduce their price target to 430p today from 470p - citing continued drag from the gas business and costs of closure. Looks very fairly priced now but suspect that it will need more than the 34p for 2018 to get it moving up - an acquisition for example, although with the change in FD at end of November you would have thought that would be a while coming. I am a strong holder but don't see a reason to buy more at 420p

[rivaldo] 02/10/2017 08:37

Finncap reiterate their 586p target and Buy recommendation following today's update.

They state that "Renew’s strong track record of delivering essential services on large, long-term frameworks can command a higher rating (currently 12.8x FY 2017E EPS)."

[hvs] 02/10/2017 08:09

Very positive.

Will be CRACKING RESULTS.

[pugugly] 02/10/2017 07:24

rivaldo - beat me too it Key points:

"The Board expects the Group to report results for the year to 30 September 2017 in line with market expectations, delivering an increase in operating margin alongside growth in both revenue and operating profit. The Board also expects to report that the Group has moved to a net cash position."

[nurdin] 02/10/2017 07:10

Yes very pleasing..:o)

[rivaldo] 02/10/2017 07:06

Lovely jubbly - trading nicely in line with expectations for the year, and now sitting on cash ready for further acquisitions:



Increased margins too, alongside the increases in revenues and profit.

[mfhmfh] 28/9/2017 12:45

pre-close announcement on 02.10.17 according to website:

hxxp://www.renewholdings.com/investors/financial-calendar/

[rivaldo] 28/9/2017 12:27

The year end trading update is likely for next week (last year's was 3rd October).

Here's one very happy major customer on a 10-year contract:



"Jet Aire is finalist in Going the Extra Mile Awards

Leeds-based drainage contractor, Jet Aire Services, was one of a select number of companies nominated as a finalist in Northumbrian Water Group’s Going the Extra Mile (GEM) Awards 2017, held this month at the Radisson Blu Hotel in Durham.

Jet Aire was shortlisted in the ‘Customer Focused’ category, which identifies Northumbrian Water Group suppliers who consistently show outstanding levels of customer service, putting the customer first while delivering excellent outcomes. The nomination was awarded in recognition of Jet Aire’s work on an ongoing 10-year contract which commenced in July 2015. Carried out in partnership with Seymour Civil Engineering, the contract is very customer-focused and involves dealing with members of the public on a day-to-day basis. The work is 24/7 and very demanding, often dealing with difficult access and working conditions.

etc"

[rivaldo] 26/9/2017 10:33

:o))

Finncap today reiterate their Buy and 586p target.

They go for 32p EPS for the year ending in 4 days' time, with a 9.2p dividend.

For this year starting 1st October they forecast 34.1p EPS with a 10.6p dividend.

[nurdin] 22/9/2017 15:09

Cheers Riv...glad to see you are still here and active :o)

[rivaldo] 22/9/2017 14:57

RNWH's Seymour Civil Engineering have been contracted to carry out the £18.6m expansion of the Beamish Museum:

[rivaldo] 19/9/2017 14:45

Indeed - 1,158,000 shares through in large chunks. I'd have said much of it was a rollover, but the move up afterwards indicates perhaps the clearance of an overhang.

[wad collector] 19/9/2017 13:53

Somebody bought about 700,000 this morning. Scuppered my limit buy !

[rivaldo] 18/9/2017 10:08

James Rae of Charles Stanley picks "Three solid AIM stocks to buy now" - and the current year P/E will be even lower in 2 weeks' time at just 12.5:



"Renew Holdings (Aim: RNWH) is a highly specialised engineering-services business with excellent revenue visibility. The company has healthy margins, strong cash generation and a growing order book. Crucially, the vast majority of its revenues arise from necessary maintenance operations. These include helping to decommission the Sellafield nuclear site and maintaining tunnels and embankments for Network Rail. The shares feel too cheap on a price/earnings ratio of 14 times, considering the order book strength and potential for growth through acquisitions."

[zimbtrader] 14/9/2017 16:06

I was a top slicer at 434 (22 Aug) but checked back at my historic trades and noticed it had a fairly similar pull back exactly a year ago. I topped up back then and took a tidy profit 4 weeks later.

Probably a total co-incidence, but I took advantage this morning and topped up again in hope of a similar outcome. Yup, it is speculating but I have confidence in the board and their conservative approach to running the company. Besides, the interim announcement had no "snakes in the grass", so I am not expecting anything untoward on 2 October...

[rivaldo] 14/9/2017 12:04

Probably more sellers today than buyers?!! Given that RNWH is a multibagger over time there's always likely to be some topslicing going on.

And also given the tiny volumes, it appears the MMs are fleecing any sellers, possibly with a view to stocking up to meet a buyer's request or prior to that trading statement I posted about earlier.

[pugugly] 14/9/2017 11:47

Riv: Agreed - I hold - Just trying to guess why fall today - Only vibes I could see in the market were fall out from Intersserve - Also hit Van Elle -

Any thoughts as to any other reason for continuing all ?

[rivaldo] 14/9/2017 11:03

You can always rely on Pug to try to spread bad vibes :o))

RNWH aren't in IRV's Energy-to-waste or Construction sectors, and RNWH's distinctive modus operandi means it's in required and necessary support and maintenance, and not dependent on new oil and gas/retail/facilities management/healthcare contracts as IRV are.

My post 8465 shows RNWH's bullish outlook with only 4 months of the year left.

[pugugly] 14/9/2017 10:50

Still falling back - news leaking or just general weakness/caution in the contracting sector after the Interserve disaster this morning

[hardupfedup] 14/9/2017 10:38

thanks riv -- as always informative

[rivaldo] 14/9/2017 09:31

...and bouncing quickly.

Approaching the 30/9 year end now, with a trading statement due in early October.

Given almost-historic 32p EPS, with 34p EPS currently forecast for the year about to start and 36p EPS going forward, RNWH's P/E is about to fall to only 12.2. Which is too low imho. Finncap have a 586p target, so there's lots of upside.

And given the likely net cash position, I'm expecting more earnings-enhancing acquisitions.

The outlook in the interims couldn't have been much more confident:

"R J Harrison OBE, Chairman said: "Our established strategy of providing engineering services in regulated UK infrastructure markets continues to deliver positive results for Renew. This has been another record half year, with strong growth in both revenue and operating profit. I am particularly pleased with the improvement in Group operating margin to 4.2%, on track to meet our target of 4.5% for the year. As a result, the Board has increased the interim dividend by 13% and we are confident of delivering full year results in line with market expectations."