Renew Share Discussion Threads

[wfcreserves] 12/10/2022 11:44

I guess we are all suffering from KwasiKwarteng's Trussonomics?

[wad collector] 07/10/2022 14:03

Well spotted , and there was also a sale at the close yesterday of another 125,000 at similar price.

[mattboxy] 07/10/2022 13:09

That trade is showing as 16-28? Is it a trade from yesterday? Is that even possible

[wad collector] 07/10/2022 12:44

Someone has just unloaded 90,000 at 576p. They obviously don't agree with Numis.
I tried to buy some just now and was offered 595p. That is too big a spread for me.

[rivaldo] 06/10/2022 13:27

Numis have issued an update note - they say Buy with a 900p target.

They've raised their forecast for the year just ended by 4%, and now see 56.6p historic EPS. So not far off a single-digit historic P/E.

There's also a 16.8p dividend.

They've left their forecasts for this year unchanged at present - I assume these will be adjusted after the full prelims.

Finally, they see a £2.3m year end cash pile rising to £20.4m next year, though this is slightly ambiguous as they also say:

"Note that we leave Sep-23E net cash unchanged at c.£35m due to assumed phasing of capex. We think the Group's strong balance sheet offers scope for further accretive and capability-enhancing M&A, consistent with the strategy."

[rivaldo] 03/10/2022 15:31

Exactly. Hopefully today's news will be enough to trigger a bounce back to say 700p-750p before the prelims in early December - current markets allowing!

[igoe104] 03/10/2022 07:36

Excellent update, and certainly no reason for the big sell off. At the moment the market as no brain, and is panic selling anything off..

[harrogate] 03/10/2022 07:16

Yes all good. Cash will be higher than that Riv. That is the consensus number and they say they are ahead of that. Doubt this will get this moving in the current market. But happy to see what they do next. Surely must be working on a decent acquisition?

[rimau1] 03/10/2022 07:13

Excellent news. Phew. A marginally ahead update is very rare these days. Well timed director buys last week and a few of us here too i suspect!

[rivaldo] 03/10/2022 07:12

Today's year end update confirms RNWH have traded slightly ahead of expectations - and RNWH now have a £9m cash pile to spend, also ahead of expectations.

The order book and outlook are "strong" and core markets are trading well.

The £54m+ operating profit should therefore equate to around 55p historic EPS, so the current year P/E is barely in double figures, especially stripping out the cash pile - which could be used for quite a meaty acquisition.

Excellent:

[harrogate] 30/9/2022 08:25

I am sure this is the cheapest we have been for many years, excluding covid. It is not the share price that tells you that alone but the multiple. The share price might have been lower but EPS was much lower then. I think the recent and unusual share purchases by directors suggest it is the market. But I guess we will find out very soon. I would like them to sell the construction division and become a pure play support services operator. Must be on the radar of a buyer given the level of security around the revenue

[wad collector] 30/9/2022 08:16

I suppose that if you look back further in time , to pre-covid period, the current share price is still higher than it was then. So maybe not such a bargain considering there are a lot of bombed out shares out there , many from blue chip companies and Trusts.

[rimau1] 30/9/2022 07:54

I think we are on about 10.5x current year earnings now (52-54p) which is the cheapest for a long while excluding the covid crash when we hit £5 briefly (and all topped up!!!). The concerns about govt fiscal tightening shouldn’t impact Renew since we mainly offer essential non discretionary services. Appreciating margin pressure from inevitable wage increases/labour shortages and supply chain concerns i am still assuming the drop is unwarranted and market related which makes this a bargain. Any other views?

[rivaldo] 30/9/2022 07:25

Yep, good to see a third director buying shares - at £20,000's worth I assume she's filled her ISA up with RNWH shares.

And this on the day before the year end! Has to be a pretty useful indicator of current trading.

[cwa1] 29/9/2022 16:39

Not just me that thought it was worth a nibble them :-)

[wad collector] 29/9/2022 15:04

I suspect that like me , your portfolio is rather heavy with RNWH. There are a lot of temptations elsewhere, I am trying not to be tempted here.

[rivaldo] 29/9/2022 13:47

With decent-sized director buying at 677p and 664p in the last couple of weeks - and just before the year end - the current price looks extremely tempting for another top-up.

There are some extremely distressed/forced sellers out there across the markets.

[harrogate] 23/9/2022 12:50

In 2020 when the pandemic hit all the forecasts were slashed as so much uncertainty. Then actual results came in well ahead so they updated as soon as this was clear. This happened to a lesser extent last year as they knew they were going to beat. Normal broker numbers now in the market and so with no update I assume we are close to these and so normal trading update timing. I hope I am wrong of course and they beat again.

[wfcreserves] 23/9/2022 10:33

Wouldn't you expect a later update during a period of uncertainty??

[harrogate] 23/9/2022 09:34

Yes but both really in the Civid era when things were all over the place in terms of forecasts

[wfcreserves] 23/9/2022 09:28

Last two years updates were published early September but before that they were beginning of October.

[harrogate] 23/9/2022 07:56

Last year was unusual. I would expect one very early in October.

[mattboxy] 23/9/2022 07:45

We're we due a trading update here. I think last year we had one by now!

[rivaldo] 21/9/2022 22:47

Certainly intriguing to get a second director share purchase just before the year end.

I think an "ahead" statement is possible - the Board meeting to look at the final management accounts for the year won't have happened yet, so the directors are still free to buy at this stage. Even if not, at minimum it would seem that the final figures and/or the outlook will be encouraging.

[harrogate] 21/9/2022 13:10

Another director share purchase. Timing is as you say interesting but probably means we are not going to get an ahead statement in September like last year. All good though as they are not regular buyers.