Renew Share Discussion Threads

[harrogate] 11/8/2021 15:03

Hi there. Just looking at the detail behind each award I don't think those numbers should be millions. Bit odd though

[rivaldo] 11/8/2021 14:56

Walter Lilly appear to have won yesterday and today a combined £147m of construction and upgrade contracts from DEFRA....



Not bad at all! They all appear to be separate from each other (happy to be corrected:

"DEFRA Network Etendering Portal

Refurbishment of B329/330 award: Walter Lilly £58.6M
B358 Cattle Handling System award: Walter Lilly £31.9M
B265 Functional Safety Alignment award: Walter Lilly £20.7M
SSB to B17 award: Walter Lilly £13.3M
MSC Phase 1 award: Walter Lilly £12.5M"

[rivaldo] 10/8/2021 09:42

July's issue of SCSW is now out, so it should be OK to copy the Buy recommendation for RNWH from the prior issue in June FYI:

"Renew Holdings
Epic code: RNWH

(Sharewatch) Renew has reported an excellent H1 to end March (against comparatives that were pre-Covid), with sales up 17% to £366m, pretax profit up 19% to £18.1m and eps up 14% at 22.9p. Adjusted operating profit margin was 6% (down from 6.4%) mainly due to a mix change - with a higher proportion of speciality building work, which is only 2% margin.

Helped by six months from Carnell (versus three) Engineering Services grew sales 12% to £327m (+6.6% organic) with operating profit up from £20.5m to £22m. This was driven pretty much singlehandedly by a strong period in Rail.

Divisional work tends to be underpinned by frameworks but H1 saw weakness in Nuclear where all non essential work was stopped during the pandemic but this has since resumed to 85% of pre-pandemic levels. Water also saw a bit of a hiatus in work as the sector transitions from AMP6 to AMP7. But Renew is well versed to these cyclical changes.

CEO Paul Scott tells me he expects growth in the middle part of the five-year cycle to resume and is now working with nine of the 26 UK water companies. Post period end it bought J Browne, a water focussed engineering services business, which works for Thames, South Eastern and South Water. Given that Thames has such complexity, it was a region that would have been hard to enter organically. Net debt post the deal is £16m.

Trading in the first few weeks of H2 has been strong aided by the record period-end order book (£665m in engineering services) and margins look set to recover as H2 will be lapping weak covid impacted months. Peel Hunt forecasts £44.5m pretax profit/eps 45.6p. Although a ten-bagger on the first write up, the shares still look a Buy."

[mayers] 06/8/2021 14:05

Thank you doubleorquits,like yourself but perhaps for not so long I have been in, from about 2013. As you say RNWH comes across as a fine well organised diverse company quite apart from any IHT implications. I hope however that the exemption will be retained despite the current financial pressures. Best wishes.

[mayers] 06/8/2021 14:05

Thank you doubleorquits,like yourself but perhaps for not so long I have been in, from about 2013. As you say RNWH comes across as a fine well organised diverse company quite apart from any IHT implications. I hope however that the exemption will be retained despite the current financial pressures. Best wishes.

[doubleorquits] 06/8/2021 13:01

Hi Mayers,

Like CWA1, as an executor of a will I have used RNWH amongst a few other AIM shares to eliminate an IHT bill 3 years ago. I presented all the information required on a spreadsheet with transactions listed and copies of contracts. I had no feedback except a tax free experience so I can only assume that it was successful! There was no evidence that any of the shares did not qualify but then that is the level of the lack of information and transparency I have grown to expect from these sorts of things. This perk inevitably helps make RNWH attractive as an investment but I think the fundamentals and reliability of the results from the company YoY are a much greater attraction and for me, at least, far outweigh everything (been holding a long, long time myself as well!)

[mayers] 06/8/2021 12:17

wadcollector

Please take a look at Sponsored Financial Content on this site. I understand there was alsoreference to AIM IHT exemption in yesterday's FT but cannot confirm this. Thank you to those who have given their positive experience of the usage including yourself. The possible impact of its withdrawal on RNWH has already been mentioned.

[wfcreserves] 06/8/2021 11:12

If the IHT exemption was removed would it be beneficial (or not) to move from AIM onto the main market?

[graham86] 06/8/2021 09:16

if bpr removed from aim.what price farmland then.

[wad collector] 06/8/2021 08:41

I've been thinking it is time to topslice for the last 2 yrs!
It is a criticism of PIs by professionals that we don't run our winners long enough and we don't sell our losers soon enough.
Mayers , not sure what you are referring to ; like almost all AIM stocks , these have been IHT exempt under the BPR rules for a few yrs now if you have held them for 2+ yrs. There has been mumbling in the Financial Press about removing the relief for a while now but nothing concrete . That would certainly devalue them. I have just been executing an estate with assets that are almost entirely AIM shares, they have admirably reduced the IHT due , though has risked the AIM portfolio volatility .

[wad collector] 06/8/2021 08:29

I've been thinking it is time to topslice for the last 2 yrs!
It is a criticism of PIs by professionals that we don't run our winners long enough and we don't sell our losers soon enough.
Mayers , not sure what you are referring to ; like almost all AIM stocks , these have been IHT exempt under the BPR rules for a few yrs now if you have held them for 2+ yrs. There has been mumbling in the Financial Press about removing the relief for a while now but nothing concrete . That would certainly devalue them. I have just been executing an estate with assets that are almost entirely AIM shares, they have admirably reduced the IHT due , though has risked the AIM portfolio volatility .

[dr biotech] 05/8/2021 20:57

Me too. In the past I’ve never let my winners run long enough, and I’m already thinking that I should have cut some of my losers rather than taking partial profits here.

Perhaps I should just keep them all, not as if I don’t have enough cash already.

[3800] 05/8/2021 20:38

You may be pleased you sold some at £7 by year end wad collector, With my porfolio touching a new high I am beginning to get vertigo over some of my stocks.

[mayers] 05/8/2021 17:53

I wonder if recent talk of AIM stock exemption from IHT may be of some relevance.

[wad collector] 05/8/2021 17:10

And almost £8 at the close. I felt pleased with myself when I unloaded some in July for £7! A pound a month will take us to £11 by the year end ....

[rivaldo] 05/8/2021 11:32

Nice £5k buy at 787p just now....looks like the 117,000 shares at 770p earlier were buys given the subsequent share price movement.

[rivaldo] 04/8/2021 09:39

Shepley Engineers have an excellent quarterly newsletter, which I've only just come across. The latest one just out includes the following - there's a lot going on:



"All our teams are busy bidding and qualifying for many opportunities which can potentially become jobs over the next year, this includes:

• The OSW replacement now called Integrated Asset Care Tender is progressing and is due in mid-July
• We are awaiting feedback on a project to install the Bulk Storage Tanks for the SCP.
• We are part of many potential 18-year jobs for PPP, including HVAC, Mechanical Piping Installation, Mechanical Fabrication, Electrical Installation and Electrical Control Panels
• At West Cumberland we have bid a major fabrication package for Fuel Racks and we are just starting a bid for High Integrity Stainless Steel Containers.
• In the Restoration arena we have been successful in winning the front-end package for the Tollcross Glass House in Glasgow and we are providing some support for the restoration of the Royal Botanical Gardens in Edinburgh. Also, in Manchester we are bidding several packages on the Town Hall.

As you can see, we are busy with these tenders and if we have a reasonable level of success, we will be very busy in the future.

On the current projects there has been some excellent progress on PPP fabrications at West Cumberland with the completion of the first phase of Wall Boxes, and the commencement of the vessels for SCP. Magnox Island has progressed well at Springfields and we have mobilised on the Manchester Town Hall."

[rivaldo] 02/8/2021 12:05

Great to see buying at 775p just now.

There could still be further earnings-enhancing acquisitions as RNWH still have leeway for more - and there may well be earnings upgrades for the year ending next month given the "strong" start to this H2.

[dr biotech] 02/8/2021 11:47

I’ve sold 40% today. They’ve risen 80% since I bought, so hold the same value now as when I bought in. Just feel it’s the right time to lock some gains in.

[bsdjj] 02/8/2021 11:36

Also as far as I can see we are at or above the highest sell side price target :FinnCap 770pPeel Hunt 750pNumis 740pLiberum 650p

[bsdjj] 02/8/2021 11:29

Consensus EPS forecasts on Eikon are 46.13p for 2021, 51.73p for 2022 and 53.61p for 2023.That puts stock on P/E of 14.3 times 2023 expected earnings. Hardly expensive even after the share price rise for a growing business in a defensive sector.I also suspect that the share price is also indicating that those consensus forecasts will be revised upwards in due course.

[rimau1] 02/8/2021 09:52

I’m getting altitude sickness Riv!

[rivaldo] 02/8/2021 09:15

More buys at 760p this morning.

Seymour Civil Engineering have just won a place on a £290m framework contract as one of eleven suppliers over the next 5 years for Yorkshire Water for works across their estate.....

[rivaldo] 26/7/2021 22:51

Lovely finish, with a closing buy at 760.04p.

It's not surprising there's a re-rating going on. RNWH are in a lovely sweet spot now, with terrific defensive qualities on the one hand, yet also deep involvement in a number of fast-growing sectors all earmarked for large government/regulated/infrastructure investment over the next 5-10 years.