Renew Share Discussion Threads

[rivaldo] 13/1/2022 22:46

I'm SUR you're right igoe104 :o))

[igoe104] 13/1/2022 15:54

Clever thinking Rivaldo, running all the subsidiaries companies via the search button. It could develop into a useless tool, with afew companies in your Portfolio that deal with councils....😁;

[rivaldo] 13/1/2022 15:35

£2m of contract wins already this month for Seymour Civil from two local councils:




Also this month, VHE have won a share of a £20m framework contract by Your Housing Group:



And of a £10m framework from the same group:

[rivaldo] 31/12/2021 11:12

Another contract win, this for Seymour Civil as part of a £1.6m Townscape scheme in Seaham, Durham:



Happy New Year to all - it's been an excellent 2021 here and prospects for 2022 look extremely rosy too.

[rivaldo] 28/12/2021 10:01

News this week on the refurb of the Palace of Westminster, which could now cost £14 billion. And in addition Seymour Civil in particular should also be benefiting from the annual costs of maintenance and other projects rising fast:



Extracts:

"Westminster repairs could last 20 years and cost £14bn

MPs and peers will have to move out of the Palace of Westminster for up to 20 years under a restoration plan that could take the cost of repairs to £14 billion, three times the original estimate.

The plan will be announced in the new year amid fears that the 19th-century building is falling down faster than it can be repaired. The last time MPs left was during the Blitz in 1941."

"The cost of managing the deterioration of the building is rising, and recent maintenance and continuing projects cost £127 million in one year alone. Weekly costs more than doubled between 2015 and 2019 to about £2.5 million."

[rivaldo] 23/12/2021 23:10

You're right - I'd forgotten (or cast out from my memory!) the Allenbuild story. A double hiccup then....

EDIT: the business as it now is should be immune from such problems given the Specialist Building division is (1) so niche and (2) pretty immaterial to the Group as a whole anyway. Plus the point of the current set-up is that it's via lots of small, non-discretionary invoicing which avoids the sort of contracting which can lead to such problems as experienced in the past.

[jeff h] 23/12/2021 19:27

Only one hiccup? - the £26m+ of losses from Discontinued Operations since 2014 is a bit more than a hiccup Rivaldo.

Another £1.62m of losses in the latest statements and no guarantee they have finished. I suspect these losses did not feature in the bonus calculations.

I have written to the company asking for more details.

[rivaldo] 23/12/2021 18:41

As I say, the target was pretty challenging imo as these things go. I have no objection to directors getting well rewarded if shareholders are too, particularly when the company concerned has consistently performed well (with only one hiccup due to Foresight) over a number of years as RNWH has done.

More to the point, the near and long-term look very, very bright, and that's where the market's focus will be.

[gilesy] 23/12/2021 16:09

point taken but generally the bonuses are set at levels designed to be achievable in such companies and the net result is they trousered nearly 3 million between them

plus they have granted themselves over 6.5 million pounds worth of shares in future
LTIP awards plus no doubt large bonuses also.

excessive in my book but appreciate I am probably a minority view

[rivaldo] 23/12/2021 15:53

Good luck. Your point made me reflect, but after investigating it's nothing to dally on IMO.

Actually the basic salary for the top 3 directors last year was only £779k - pretty low for a company the size of RNWH.

Apart from the LTIP, the rest was almost entirely due to the achievement of bonuses predicated on quite a tough target in a Covid-affected year. This was the achievement of a £51.2m operating profit - against a £44.8m target and against £39.6m operating profit the prior year.

Given RNWH's progress in recent years I'm happy for the directors to be actively rewarded via incentives/bonus schemes rather than with large salaries.

[gilesy] 23/12/2021 12:09

sold out today at 8.14 for a very healthy profit
great company but I think the directors are overpaying themselves - top 3 earnt 2.5 million last year. thats quite a chunk of the profits and far more than the average staff are paid. just dont like the snouts in trough feeling Im getting here.
call me old fashioned

[mattboxy] 22/12/2021 22:56

980p or is that wishful thinking?

[wad collector] 22/12/2021 19:02

So the share price opened the year around 530p and is going to close around 820p probably , so what are the guesses for a 2022 year end close? Or swallowed up by predator?

[rivaldo] 22/12/2021 14:53

Cheers, and the same to you. I can't see any reason why RNWH shouldn't continue to gain nicely again in 2022 given the rosy prospects, strong trading, further re-rating as the markets at last starts to appreciate both RNWH's risk-averse business model and its multi-year growth strategy, and the likelihood of more acquisitions.

[wfcreserves] 22/12/2021 11:40

Thanks and Yuletide greetings to Rivaldo for keeping us well informed of Renew happenings.

[rivaldo] 21/12/2021 07:15

RNS - the next trading statement is coming soon via the AGM on 26th January:



Good to see the directors encouraging questions via email beforehand to [e-mail].

[rivaldo] 15/12/2021 13:53

Shore Capital say Buy, with a 930p target and "significant scope" for upgrades.

They conclude:

"Forecasts

We expect to leave our forecasts unchanged but see scope for upgrades. Renew has consistently had a very high level of visibility with c70% of current year forecast sales usually in the order book. This has helped the group meet or beat consensus profit forecasts in every year since the group came into its current form in 2006.

Valuation and recommendation

We believe Renew represents a good opportunity for investors seeking to benefit from the UK Government's commitment to invest £640bn in infrstructure from 2020 until 2025. Given the nature of the Group's variable, cost-plus contracts, we believe Renew is very well placed to pass on inflationary pressures to customers. We also believe it is protected against economic downturns given that its revenue is driven by the public sector.

We continue to believe Renew has a much lower risk profile than the market perceives, possibly due to associations with peers servicing much larger fixed contracts. Renew's ability to control costs and resilience during the pandemic has been much greater than the majority of industrials and worthy of an even greater re-rating, in our view. It is highly unlikely, in our view, that operations will be significantly impacted by restrictions related to the Omicron variant.

We maintain our Buy recommendation and 930p DCF-based fair value (16% upside). We see significant scope for this to be upgraded. As of yesterday's closing price, the shares trade on 15x our FY22F EPS forecast and 10.5x on an EV/EBITDA basis."

[cwa1] 09/12/2021 15:58

Nothing new here but some publicity in this article...

[rimau1] 09/12/2021 15:20

I am quite confident in saying we are at ATH’s, well done Renew! Still not selling a bean as i fell in love with this stock many moons ago. Will do one day but not for a while yet.

[wfcreserves] 09/12/2021 12:56

New video on the Dawlish sea wall



The wall seems to be holding firm but some of the trains can't take the strain.

[davebowler] 09/12/2021 12:49

Cenkos-
RENEW (RNWH: 835p; NR): KPMG’s request for extra time was clearly not grounds for trepidation or concern. Renew’s results for the year to Sep-21 were bang on the money and a smidge above guidance. Revenues grew 27.5% to £791m and adjusted operating margins improved to a record 6.5% (6.4%) giving adjusted PBT of £50.8m (+31%) and EPS of 50.5p (+22.5%). Dividends go up to 16p with the final increased 34% to 11.17p. Net debt at the year-end was £13.7m on a pre-IFRS16 basis, reflecting the acquisitions of Browne and REL in the period. The group order book at end-Sep stood at £749m (vs £692m). Divisionally, Engineering Services accounted for over 95% of group operating profit and 89% of revenue with Specialist Building, focused upon high quality residential contracting and science markets in London and the Home Counties.



Within Engineering Services, where margins reached 7.3%, Infrastructure (Rail) and Environmental (Water) look to have been better performers in the year than Highways or Wireless Telecoms in Infrastructure or its Energy division which is primarily Nuclear. It continues to seek added value services to its offering across industries with innovation and technology at the heart of this drive. Equally, it is acquisition led too where these are complimentary or supplement existing operations; it has a good pipeline currently.



Investors need little reminding of the big macro-opportunities that exist for Renew to grow scale and share in such markets as highways, energy/nuclear, telecoms and even rail keeping to its capital-light, service-heavy ethos. Backed by the higher order book, full contributions from 2021 acquisitions and underlying growth expected in its major markets, Renew’s confidence goes beyond the momentum carried into the first couple of months of its new financial year. Consensus for FY22 is for revenues of £835m, EBIT £53.8m giving a 6.45% margin, adjusted PBT of £52.9m (+6.5%) and EPS 54.1p (+7%). A modest net cash position is estimated by Sep-22. The rating remains one of the sector’s highest standing at a Sep-22 EV/EBITA ratio of 13.1x, PE 15.4x, yield 2.0%, FCF yield 5.7% and price/book over 4x, however it does have an excellent record of delivery and growth characteristics rarely seen in more conventional contracting.

[wfcreserves] 09/12/2021 11:36

@ Rivaldo

Yes the dividend is almost double on previous year but the interim that year was cancelled (because of Covid) and not reinstated so not quite a fair comparison?

I'm not complaining about the results though!

[wad collector] 09/12/2021 10:41

Yes my bad (Pretending I am under 25yo) must have hit wrong button , but that is even better!

[rivaldo] 09/12/2021 10:37

Wad collector, at 840p the current year P/E is only 15.4 - no idea what calculator you're using :o))

I can see further upgrades given this relatively cautious forecast against the 50.5p EPS already achieved last year. And there's still good upside to Peel Hunt's 1000p valuation.

[wad collector] 09/12/2021 10:05

Looking again at the figures, the new P/E is 27 on current price, which combined with the strong niche position and positive outlook , suggests this is still not expensive.
I bet there will be a load of broker updates , and a new IC buy article!