Renew Share Discussion Threads

[rivaldo] 25/2/2022 09:34

Amey quit its 25-year maintenance and management contract with Birmingham Highways Ltd (BHL) on 31st March 2020.

RNWH's Carnell subsidiary are one of the parties interested in this rather sizeable £2.7 billion contract which is now being tendered:

[igoe104] 22/2/2022 16:35

Nice framework involvement for Amco-giffen.

[gilesy] 22/2/2022 11:01

high quality business but too much of the profit is being grabbed by the greedy directors sadly

[rimau1] 22/2/2022 10:24

Top up for me, could only get 686 but the defensive high quality nature of Renew makes that a bargain IMO. My biggest holding.

[igoe104] 18/2/2022 12:53

Nice Airport framework for Amco-giffen.

[igoe104] 09/2/2022 16:40

I will be, wad collector. I very rarely sell anything this day of a age. If its good enough investment plan for investors like John Baron, Warren Buffet, Lord Lee etc its good enough for me.

[wad collector] 09/2/2022 15:45

Yep and I assume you are holding out for another 15 yrs to ten-bag them again to make them a hundred bagger?

[scottishfield] 07/2/2022 15:17

Much appreciated rivaldo.

[rivaldo] 07/2/2022 12:48

The new issue of SCSW was out this weekend, so it should be OK to reproduce the rather positive coverage of RNWH from the last issue:

"Renew

820p Epic code: RNWH

(Sharewatch) Renew's FY21 results demonstrate the benefit of current and prior year M&A. Revenues increased by 28% from £620m to £791m, helped by a full year’s contribution from Carnell and the in-year acquisitions of J Browne and REL. Pretax profit was up 31% to £50.8m and eps were up 23% to 50.1p. Net debt was £13.3m despite £33m spent on the acquisitions.

Within Engineering Services, which accounts for over 95% of the group’s adjusted operating profit, sales were up 22% to £706.7m with operating profit up 26% to £51.5m, resulting in an operating margin of 7.3% (2020: 7.1%) and the divisional order book has increased from £665m (March) to £679m.

The Rail and Highways divisions were the swing factor behind the 12% organic growth. Renew holds over 50 CP6 maintenance and renewals frameworks across Rail and this segment is >50% of the group whilst the £38m Carnell deal now takes it into the buoyant Highways segment. Although these are mostly about maintenance rather than capex, a helpful tailwind is the government’s National Infrastructure Strategy, which has committed over £24bn investment between 2020-21 and 2024-25 in strategic roads and a £96bn investment in rail infrastructure, which is the biggest in history. Other smaller segments aren’t doing too badly; notably, nuclear works have recovered at Sellafield since early May whilst Water had been weak due to the transition to AMP7 but has been ramping up in H2.

First written about at 79p in January 2007 (and more recently at 430p in Sep ‘20), the shares are now a 10-bagger. Peel Hunt forecasts eps of 53.2p for the current year to end September but if last year’s momentum is anything to go by, these will be well beaten."

[gilesy] 07/2/2022 09:20

yes and not just the high salary , the 3 directors have granted themselves massive share options.
too much of the profit is going to them , thats why I sold out

[wind dancer] 06/2/2022 15:06

Giles
23/12/21
And the bod does not actually manage any of the 13 business units.
So these Packages are proportionally repeated across all 13 fully staffed operating companies. Now that’s a LOT of brass.

[rivaldo] 02/2/2022 12:34

Yep, nice bounce - and on healthy volumes too with 300,000 shares traded already today.

Looks like 260,000 shares bought at 754p reported late from earlier in the day given the move up..

[igoe104] 02/2/2022 12:13

Hopefully thats a clearance of some overhang and now RNWH can go back over £8, again.

[harrogate] 02/2/2022 11:49

Quite large trades going through at 754. Look like sells but not sure

[rivaldo] 28/1/2022 07:23

Shore Capital's latest Buy note after Wednesday's AGM statement says Buy with a 930p fair value:

"Renew^ (RNWH, Buy at 709p)
AGM statement Q1 trading in line; attractive entry point

Summary

This morning, the engineering services group, supporting UK infrastructure, announced, ahead of its AGM, that Q1 22F trading, net debt and cash generation were in line with the Board's expectations. The Group order book at 31 December 2021 was £742m (31 December 2020: £677m; 30 September: £749m) and the Engineering Services order book was £687m (31 December 2020: £583m; 30 September: £679m).

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 infrastructure 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 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 (31% upside). We see significant scope for this to be upgraded. As of yesterday's closing price, the shares trade on 13x our FY22F EPS forecast and 9x on an EV/EBITDA basis. We believe the current share price represents an attractive entry point for Renew. BUY"

[grahamburn] 27/1/2022 15:23

Considering Renew is ex-dividend today, the price is very strong

[scottishfield] 27/1/2022 11:30

Same here w c, added, but I shall continue to hold.

[wad collector] 27/1/2022 11:14

I already have too many of these but couldn't resist adding some more on this weakness which seems illogical.717 I suspect will be 800 in a few weeks and this time I will trade them out.
Missing the 11p divi today is a small extra price.

[rivaldo] 27/1/2022 08:34

Shore Capital remain very keen after yesterday's update:



"Renew Holdings Could Capitalize on GBP640 Bln UK Infrastructure Spend

Renew Holdings is a good opportunity for investors looking to benefit from the U.K. government's commitment to invest GBP640 billion in infrastructure, Shore Capital says. What's more, the U.K. engineering-services company's variable cost-plus contracts leave it well positioned to pass inflationary pressures on to customers and its public-sector-driven revenue protects it from economic downturns, Shore adds. "We continue to believe Renew has a lower risk profile than the market perceives, possibly due to associations with peers servicing much larger fixed contracts," the U.K. investment group says. Shore Capital has a buy rating on the stock. Shares trade up 3.8% at 736 pence."

[igoe104] 26/1/2022 07:45

I always find it strange how folks panic sell when general markets are going down. When you think about it they are only selling because others are. A weak way of going through life.

[rimau1] 26/1/2022 07:41

The strong order book certainly underpins prospects. The key this year is the cost plus nature of its contracts so Renew should manage inflation pressures better than most. After the recent fall 13x 2022 earnings is too cheap IMO.

[rivaldo] 26/1/2022 07:17

As always today's AGM update is short, and is relatively sweet. Q1 trading and cash generation is nicely in line, the overall order book is steady at similar levels to the year end record highs, and the higher margin engineering order book has continued to increase.

Not long either until the H1 update on 1/4.

[scottishfield] 24/1/2022 17:31

Good adding opportunity coming up.

[rivaldo] 24/1/2022 14:01

Agreed, the volumes are small and the MMs are simply taking advantage of forced/panic sellers with exaggeratedly low prices.

Remember only last month RNWH said:

"Current Trading & Outlook

· Positive trading momentum carried into new financial year

· Strong forward order book underpins confidence in achieving further progress in 2022

· Confident in our future prospects and well positioned to capitalise on our strengths to target new opportunities in attractive markets"

[wfcreserves] 24/1/2022 13:45

Seems like a dramatic fall on low volume of transactions.

Hope the upcoming update due at the forthcoming AGM this week is going to be positive to reverse the trend and that the fall is not due to leaked news of it.