Renew Share Discussion Threads

[igoe104] 25/9/2020 17:58

Got a feeling that statement, just might be good.

[harrogate] 25/9/2020 17:57

I doubt there will be a trading update next week as they have done one - earlier than normal. The next we hear will be 8th December when finals will be released.

[jeff h] 25/9/2020 17:16

Did not know finnCap covered Renew, thought it was Peel Hunt and Numis that covered it. Liberum also had a 490p price target for it back in June. Full year trading update next Thursday I think.

[rivaldo] 25/9/2020 10:56

Finncap have this morning issued a Flash Buy note on RNWH, headed "Resilient and reliable" (thanks mate). They have a 593p target price. They state: "Renew’s trading update at the beginning of September detailed trading since H1 results had been strong and ahead of expectations. We have upgraded our FY 2020 EPS by 8% and improved our net debt assumption from £10.5m to £5.6m (excluding finance leases, the group will be in net cash). Renew’s engineering activities in Rail, Infrastructure and Environmental markets have remained robust, with the majority designated as critical to the COVID-19 response. We continue to forecast dividend repayments to recommence with a final in FY 2020 (results due 8 December) and reiterate our view that there is no change to the long-term outlook. This is supported by the Government’s commitment to invest £640bn over the next five years, which is looking increasingly essential to restart and support the economy."

[rivaldo] 25/9/2020 06:30

Nice bounce yesterday. I'm sure value will out here soon - RNWH are simply too low at these levels. Given the "ahead of expectations" update the run up to the results in November should be interesting. I came across this flood defence contract for AmcoGiffen which will benefit September just before the year end, as part of a £32 million programme of flood defence works across Yorkshire: Https://www.miragenews.com/sheffield-river-maintenance-works-to-reduce-flood-risk/ "Sheffield river maintenance works to reduce flood risk The Environment Agency will be starting work in the river channel in Sheffield this month (September) to help reduce the risk of flooding in the city.... ...The Environment Agency has employed contractors AmcoGiffen to carry out the work."

[wad collector] 24/9/2020 09:21

It does remain an enigma , why the share price is not responding to a series of pieces of seriously good news. However , if you are long here, it is not a worry.

[deadly] 24/9/2020 07:31

Hasn't joined the market rise this week and fell 3.5% yesterday against the strong market. So an even greater bargain?

[igoe104] 11/9/2020 07:16

Also now HS2 Is kicking off, they should be a increase in revenue from that massive project as well.

[rivaldo] 11/9/2020 07:02

In the March interims, the Specialist Building order book had doubled to £99m (from £49m). This likely reflects both the work at Westminster and that medical build contract they won. The refurb works at Westminster are now forecast to cost around £6 billion. A reasonable share of that would be very material for RNWH.

[wad collector] 10/9/2020 09:19

Excellent , and not only will that be profitable , it is a flagship project that can only bring in more custom. Providing they continue do a good job and Guy Fawkes does not rejuvenate.... (anyone else remember the Lovell homes sand problem?) Looking at last yrs results , the specialist building division only made RNWH £0.9M profit (£37.7M whole group) so perhaps not that big a part .

[rivaldo] 10/9/2020 07:29

This news from July hasn't been posted before, but is quite significant imo. It shows that RNWH are a vital component of the huge restoration works needed at Westminster (via Water Lilly and Seymour Civil as main contractors). It perhaps also explains why RNWH haven't sold off Walter Lilly, as the works at Parliament will be massive over the next few years. And note that Walter Lilly have now been reappointed to carry out works on another courtyard: Https://www.walterlilly.co.uk/houses-of-parliament-restoration-project-reaches-finals-in-constructing-excellence-secbe-awards/

[rivaldo] 09/9/2020 09:31

Cheers. Their 590p price target is reasonable for the moment, but may be upgraded imo after the upcoming 30th September year end.

[bsdjj] 09/9/2020 07:45

Numis have upgraded FY Profit forecasts for FY20 (EBITA & PBT) by 7-9%. Target price 590p (unchanged).

[wfcreserves] 07/9/2020 10:45

Will be nice if a reinstated dividend is materially ahead of expectations too!

[rivaldo] 07/9/2020 08:18

Thanks for the good news re the 5G mast igoe104. Over £100,000 of buys this morning already - given the trading "materially ahead of...expectations" hopefully any seller is being cleared out fast.

[igoe104] 06/9/2020 13:23

Clarke telecom should do very well from all this 5G investment. Plans for Barrow 5G mast approved https://tinyurl.com/y25kybw9

[rivaldo] 04/9/2020 13:46

Good to see the bid price starting to rise and now at 462p. Perhaps our seller is finally cleared/clearing.

[rivaldo] 04/9/2020 10:25

The IC have just updated, and say Buy at 463p - here's the conclusion. I assume their 2021 P/E is based on old forecasts which will now be upgraded. Hopefully today's news will finally underline to the market the difference between RNWH and the rest of the construction sector in terms of both their terrific defensive qualities cobined with high growth potential: Https://www.investorschronicle.co.uk/company-news/2020/09/04/renew-bounces-upwards-on-better-than-expected-guidance/ "IC View The unscheduled trading update sent the shares up by almost a tenth to 463p. Amid the fallout from Covid-19 and an economic downturn, the outlook for UK construction is shaky. But we continue to like the stability offered by Renew’s preference for non-discretionary infrastructure projects that are underpinned by long-term, regulated budgets. It is therefore well-positioned to benefit from the government’s £640bn infrastructure spending plans as well as any other infrastructure stimulus to kickstart the economy. With that in mind, the shares look undervalued at just 12 times forecast 2021 earnings. Buy. Last IC View: Buy, 474p, 19 May 2020"

[cfb2] 04/9/2020 09:11

As I said a few days ago, I was baffled at the low share price but was quite happy to accumulate. It seems that the rest of the market was just a little slow to catch on. Given our current P/E ratio I would expect us to be retracing to 550p in short order.

[wad collector] 04/9/2020 07:59

Excellent , and as I was questioning earlier in the week , would suggest continues to be undervalued even with today's rise. As you point out Rivaldo, this current 460p price does not compute.

[rivaldo] 04/9/2020 07:56

SCSW noted that the prior forecast for the year finishing this month was £36.2m profits, or 38.9p EPS. So today's upgrade implies a 10% uplift in profits. The same assumption gives almost 43p EPS. The prior forecast for the year starting next month was £39.9m profit, i.e 43.2p EPS - which RNWH have delivered a year early. If forecasts for the year about to start increased by 10% that would give 47.52p EPS. At 460p that gives a soon-to-be current year P/E of only 9.7. Which is far too low to start with, without even looking at forward P/E ratios.....

[nw99] 04/9/2020 07:45

Doubled up this morning