Renew Share Discussion Threads

[rivaldo] 07/1/2020 12:18

I concur with others who believe that RNWH are a quality company and remain good value at these levels.

And Liberum actually have RNWH as a Hold:



If anyone has read Liberum's recent note they will know it's a load of codswallop. Liberum simply lump RNWH in with all the other well-known support services companies who've been disaster areas, and completely fail to differentiate between them and RNWH. Which is just ridiculous - and extremely poor research.

Either (1) the analyst is straight out of uni and knows nothing, or (2) Liberum have an axe to grind, or (3) they will suddenly change their mind and see the light, proclaiming that RNWH are the future of the sector - having of course got their clients in beforehand by talking the stock down.

[harrogate] 07/1/2020 09:24

Fallen a bit as got ahead of itself. Liberum issued a sell note with £4.60 target perhaps behind some of the weakness. They have been negative since they started coverage last year

[rivaldo] 05/1/2020 20:40

I too believe there will be upgrades this year given the rosy outlook for each division and all the contract/framework wins. I think the AGM will probably be too early in the year to flag upgrades, but it should at the least deliver a very confident outlook.

The other reason for upgrades would be a reasonably sizeable acquisition, since the last one was 20 months ago and the Balance Sheet is in good shape again.

I also wonder if this year Walter Lilly will be sold, particularly as RNWH would probably now achieve a more attractive price given the post-election certainty and improved outlook for the construction sector.

[rimau1] 04/1/2020 18:21

Agreed Harrogate except i think historically before this was tarnished with the failed low margin infrastructure support services brush (think Costain, interserve, kier) we used to trade at 15 times due to the high quality earnings and barriers to entry so i think there is more to come but yes i would expect earnings upgrades for 2020. My price target is £7 this year.

[harrogate] 03/1/2020 10:00

Thanks for all the contract news from everyone. Rerating has been pretty swift here back to 13 x which was I am sure due to relief that no labour government or further dithering on brexit. I think that to make much more progress we need to see 2020 EPS upgraded beyond current 42p. It makes no sense to me that all these wins are already in the figures so you would think maybe at the AGM we would get some words that indicate brokers should upgrade.

[robow] 03/1/2020 09:06

thanks Rivaldo

[rivaldo] 03/1/2020 09:00

Even more great news from yesterday - this one looks huge, and secures revenues through to 2024.

AMCO have won on 5 of the 6 lots for a mighty £4 billion of Network Rail CP6 construction works for Wales and the West of England:



"02 Jan 2020

Kier, Bam Nuttall and Morgan Sindall are among the winners on Network Rail’s £4bn construction works framework for Wales and the West of England.

The framework covers construction works for bridges, tunnels, shafts and subways in the two regions.

Network Rail's contract awards notice said contracts would run for an initial three-year period, with one-year extensions giving a potential total contract length of eight years.

It comes under Network Rail's five year control period 6 (CP6) delivery plan which runs from 2019-2024.

South Yorkshire-based AMCO Giffen, formerly Amalgamated Construction, won on five of the six available lots.

Lot Contractors
Wales - Civils Alun Griffiths, AMCO Giffen, Centregreat Rail
Wales - Geotechnical Alun Griffiths, AMCO Giffen
Wales - Metallic structures Alun Griffiths, AMCO Giffen, Centregreat Rail
Wales - Signalling power and communications, electrification and plant AMCO Giffen, Kier
Western - Lot 1 Bam Nuttall, Hochtief UK, Morgan Sindall
Western - Lot 2 Alun Griffiths, AMCO Giffen, John Graham, R&W Rail

It is the first control period to be delivered under the operator’s new regional structure, which devolved responsibility for infrastructure projects.

Western region works in CP6 include integration of Crossrail’s Elizabeth Line into the network and renovation and refurbishment of the roof of Bristol Temple Meads Station, Network Rail has said.

In Wales works include investing £135m to improve signalling reliability and repair, maintenance and renewal of more than 35 bridges including at River Neath Swing Bridge, Kidwelly Viaduct and Llangadog Viaduct."

[mayers] 02/1/2020 19:02

Please scroll down rivaldo's construction enquiry page to the poor Crossrail worker for Costain who lost his disabled wife and all his belongings in a fire that engulfed his home. There is a justgiving availability.

[jampot7us] 02/1/2020 12:21

Very nice!

[rivaldo] 02/1/2020 11:54

Just announced this morning - RNWH's Seymour Civil Engineering win a place on the Government's "Minor civil engineering works (up to £3m) – Total value £1.5bn" framework for the North of England for the next 7 years:

[rivaldo] 01/1/2020 17:34

Cheers igoe104, good to see. I note that further down the article RNWH gets a second very positive mention from another tipster whose tip this was for 2019:

"Renew, which is based at Aberford near Leeds, provides engineering services for critical infrastructure networks (think bridges, tunnels and power stations).

When I picked the stock last winter, I reckoned that any government dealing with the fallout from Brexit – which was due to go ahead at the end of March – would feel bound to continue investing its dwindling tax returns in the kind of big infrastructure projects that help keep a country afloat. In other words, the kind of projects that firms like Renew thrive on.

I also thought that Brexit would cause problems for many companies, especially those that rely on trade with the Continent, effectively ruling them out of my share-pick options.

Brexit, of course, didn’t happen as billed, but mine turned out to be a decent strategy nevertheless, as there was indeed disruption for some companies, arising from uncertainty, defensiveness and even stockpiling.

Renew, on the other hand, grew both revenue and operating profit in its core engineering services division by 21 per cent, reducing debt and increasing dividend per share. In short, it was the very image of a thriving company, and its share price had risen by over 30 per by December 12, when Britain went to the polls.

Boris Johnson’s landslide victory sent the markets soaring and saw share prices, including Renew’s, spike in the euphoria."

[igoe104] 01/1/2020 13:43

Tipped in the Yorkshire post.




But I’m determined to finally break this string of bad form and this year I’m pinning my hopes on engineering-services provider Renew Holdings.
The Leeds-based firm is bucking the trend and performing well in the engineering sector. It has enjoyed continued organic growth, along with a growing dividend.
The firm’s share price has seen a sharp upward turn in the month of December off the back of a strong set of preliminary results in November.
Renew has a proven track record of revenue growth and profitability and cash generation.
Group revenue was up 11 per cent to £600.6m from £541m in 2018.
Dividend for the full year was up 15 per cent to 11.15p, while adjusted operating profit was up 23 per cent to £38.3m.
Analysts at Shore Capital said: “We think its current rating fundamentally undervalues the business, possibly due to its association with contractors that have a much higher-risk profile, in our view due to the relative size and low-volume of their contracts compared to Renew’s.”
The firm also benefits from visibility of revenues for long-term frameworks, a high operating profit margin, strong cash generation and has an established market position with UK infrastructure investment expected to grow.
All these factors are enough to inspire confidence heading into the New Year.
And that’s why I’m backing Renew to help me to return to form.
Renew Holdings closed 2019 at 546p.

[pwooly] 31/12/2019 19:58

Oh yes it did

[wad collector] 31/12/2019 19:25

Looks like this BB never quite reached 9000th post this yr.

[davidosh] 30/12/2019 16:05

RTC seem to be benefiting from this upswing in Network Rail spend too.

[jampot7us] 30/12/2019 15:10

Very nice!

[rivaldo] 30/12/2019 14:57

Very nice indeed - great spot Jeff H.

To clarify, this is for up to £4 BILLION of infrastructure work across Network Rail's Western and Wales region for the next 3 years.

And AMCO have won significant places as one of only two to four contractors on four of the six available lots.

More lovely large and secure income streams going forward.

[jeff h] 30/12/2019 14:29

Amco features heavily:-

[rivaldo] 30/12/2019 14:10

Nice strong end to the year - the P/E is even in double digits now :o))

Lots more to go for though imho. Happy New Year to all here.

[jampot7us] 27/12/2019 17:34

Ok...cheers anyway....

[wfcreserves] 27/12/2019 17:31

No idea. I did ask earlier in the month about where an out of the blue UT price came from but reply there came none. Just have to wait and see I guess.

[jampot7us] 27/12/2019 17:01

so does the next open auction put things straight or is that drop legit?

[wfcreserves] 27/12/2019 16:56

Apparently an uncrossing trade @5.14. Other small trades were showing @5.34. So published ask and bid prices a bit misleading? They were showing a minus 32 spread at one time!

[jampot7us] 27/12/2019 16:39

Ouch..what causes such drop during the auction?