Renew Share Discussion Threads

[rivaldo] 31/1/2020 07:27

HS2 is now looking like it will definitely go ahead.

RNWH were previously named as one of Numis' top three beneficiaries of HS2:



"AIM-listed Renew Holdings "offers the greatest exposure to rail opex" in the analysts 'universe' of stocks."

And RNWH themselves say on their web site about the opportunities in Rail:

"Investment in Control Period 6 ("CP6")3 £48bn

CP6 is expected to see a 25% increase in spend on operations, maintenance, support and renewals.
Opportunities will arise from the integration of HS2 with the existing rail infrastructure.
Long-term investment is required to deliver renewal and maintenance services on London Underground and Train Operating Company assets."

[sharw] 30/1/2020 13:32

Yes - ex 7.67p

[harrogate] 30/1/2020 12:59

Isn't it ex div today as well ?

[rivaldo] 30/1/2020 12:51

There's not many "punters" here :o))

Placings to institutions are a fact of life if you want to complete an acquisition quickly and easily. Rights issues etc take months to complete - and cost a lot more.

The share price is essentially unchanged now, and it should begin to rise imho as forecasts are raised to account for the new acquisition.

[wfcreserves] 30/1/2020 12:33

@ rivaldo

Might soothe some of the non selected punters who have bought @5.25 and above not knowing there was another placing in store @£4.75?

[rivaldo] 30/1/2020 11:17

Looking at today's press it seems Shore Capital have again reiterated the 570p target.

So I assume they'll either update/upgrade after further consideration of the deal, or will keep that target until further news flow.

[wfcreserves] 30/1/2020 09:28

@ rivaldo

As you reported yesterday before the deal was announced. Did they know about the deal or are they due for another update?

[rivaldo] 30/1/2020 09:20

Thanks re the Numis upgrade bsdjj.

And Shore Capital have raised their target price to 570p (from 470p) too.

[wfcreserves] 30/1/2020 09:06

Lucky they disclosed a day after the AGM. Avoids questions being raised about the privileged few existing shareholders entitled to take part in the placing. Again.

[bsdjj] 30/1/2020 08:14

Numis (house broker) upgrades PT to 590p from 500p.

[jampot7us] 30/1/2020 07:57

Tipped in todays shares mag...

[harrogate] 30/1/2020 07:40

Looks a good fit at a decent price. Disappointing again that no open offer for us but at least it is at a reasonable discount and not too large a placing. Should make life interesting

[rivaldo] 30/1/2020 07:39

I did say yesterday "it's about time for another earnings-enhancing acquisition" :o))

Et voila....



Carnell fits perfectly into the RNWH model, with "long term framework contracts and high barriers to entry" providing good visibility going forward as "focused on direct delivery, non-discretionary renewals and maintenance" - in a new sector for the company.

The 475p placing price is a tad disappointing, but this looks highly earnings-enhancing, with £5m EBITDA expected for a £38m consideration and a possible return to £6.2m EBITDA from 2018.

Particularly as:

"Looking ahead towards Road Investment Strategy 2 (("RIS2"), which runs from 2020 to 2025), in the 2019 Autumn Budget, the Government announced the National Roads Fund would be GBP25.3 billion, a 66% increase from RIS1, with an increased focus on renewals and maintenance which the boards of Carnell and the Company believe will therefore offer a major opportunity for Carnell. It is also widely expected that the forthcoming budget by the Government will have a focus on infrastructure investment which will likely benefit services providers such as Carnell."

[bsdjj] 29/1/2020 21:25

sorry Rivaldo see you picked this up first thing. Worth repeating though...

[bsdjj] 29/1/2020 21:23

Thats quite a decent jump in the order book. £651m at end year compared to £581m at 30th Sept. 2019. Bodes well for the future....

[rivaldo] 29/1/2020 10:02

Shore Capital say Buy today with a 570p target.

Peel Hunt also say Buy, with a 575p target.

Liberum have also updated, but as I noted previously their "research" is so laughably misjudged imho that it's not worth repeating.

We should hopefully see good progress here towards 570p or so, especially with such secure forward order books, attractive fundamentals and increasingly strong prospects across the divisions.

And it's about time for another earnings-enhancing acquisition given the tiny net debt and the gap since the last one.

[harrogate] 29/1/2020 07:33

Steady as she goes as usual here. Reassuring but at some point with rail CP6 up 25%, lots of new framework wins and order books up 12% this has to feed through into more than a 2020 increase in EPS of < 5% or we are missing something.

[rivaldo] 29/1/2020 07:10

Once again today's trading statement is very encouraging.

Not only is current trading nicely in line, but the order book at 31st December was £651m, up from £581m at 30th September. That's a 12% increase in just 3 months....which has to bode well going forward:

[wad collector] 28/1/2020 12:44

When you look at all those magnificent viaducts ,especially when you stand under them, it is awesome that the Victorians constructed them without modern equipment. Don't suppose that HS2 bridges will last a century and a half. I see that one has concrete without steel reinforcement.

[rivaldo] 28/1/2020 12:40

Nice eight month remediation contract awarded to VHE:



"VHE awarded Homes England Former Electrolux Site, Merrington Lane Infrastructure Works

27 January 2020

VHE have commenced work on the regeneration of the former Electrolux Site, Spennymoor site near Durham for Homes England.

The works include site remediation and preparation of development platforms, highways re-construction, diversion and provision of site utilities and associated infrastructure.

Infrastructure works are being undertaken by sister company Seymour Civil Engineering and are integrated into the VHE regeneration package. These include the construction of a new spine road, SW and FW drainage for the proposed spine road, 278 works at an access junction, culvert diversion and combined sewer diversion.

The VHE North East team commenced works on site January 2020 with the project programmed to take 33 weeks to complete."

[wad collector] 14/1/2020 10:20

The NED posts have always seemed a bit of a dubious business model to me. Call me old fashioned but I would rather have a director focused on one company rather than a selection of directors with fingers in other pies. It may be good for networking and spying on other sectors but it can lead to conflicts of interest and lack of commitment.

Looking at the share price dip , this looks like a buying opportunity , but I remind myself that I have far too many of these and many burned fingers.

[harrogate] 14/1/2020 08:07

Hopefully we needed an additional NED ( we have a few ) and this is not some sort of diversity tick box exercise

[rivaldo] 14/1/2020 07:38

Looks like a quality and high-profile NED appointment today:

[rivaldo] 12/1/2020 07:35

Great to see the Mail on Sunday updating so positively on RNWH today - for those not already holding it reads as a Buy recommendation:



"MIDAS SHARE TIPS UPDATE: Renew Holdings powers ahead as shares see more than sixfold rise

Renew Holdings has come a long way since Midas recommended the stock at 75p in 2012.

Once known as a construction firm, Renew has steadily increased its focus on essential renewal and maintenance work in areas such as railways, waterworks, mobile antennae and nuclear decommissioning.

Today, these businesses generate 95 per cent of group income, sales and profits have soared and the shares have surged to £5.00 – a more than sixfold rise.
Renew customers include Network Rail, Vodafone, Sellafield and Yorkshire Water

Looking ahead, Renew should continue to deliver growth. The Government has pledged to spend billions of pounds on infrastructure, a good proportion of which will be invested in upgrade and modernisation projects. Renew is ideally placed to benefit from these plans.

Chief executive Paul Scott employs 3,600 skilled staff, there is a bespoke Renew academy, and the group has more than 200 young people on training schemes, including 127 apprentices.

Having a large workforce means that Renew can respond quickly when customers need urgent repair work, and it also gives the firm an edge with customers such as Network Rail, Vodafone, Sellafield and Yorkshire Water.

Refurbishing rail tunnels, maintaining track, preventing water leakage, decommissioning nuclear plants – these are all highly-skilled jobs, and contracts tend to last for several years or, in some cases, decades.
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New programmes are coming on stream in the regulated rail and water industries and Scott has already secured contracts that will deliver a rich pipeline of work. The group is also helping mobile operators to deliver 5G infrastructure, a project that will probably take years to complete.

Renew delivered an 11 per cent rise in turnover to £601million for the year to September 2019, with profit up 22 per cent to £38million and a 15 per cent dividend rise to 11.5p. Further growth is expected this year, including profit of £40million and a 12.5p dividend, which is set to rise again in 2021.

Midas verdict: Renew shares have risen sharply in the past two months. Investors applauded last year’s results and Scott is optimistic about the future.

Shareholders have earned a good return from this stock, but there is more to come. Keep holding."