Renew Share Discussion Threads

[bagpuss67] 02/10/2023 06:25

Well done team. Nice results.

[rivaldo] 02/10/2023 06:23

RNWH have delivered yet again - results to 30th September will be slightly ahead of expectations as regards all of revenue, operating profit and net cash.

The cash pile in particular will now be more than £31m, so year end dividends should be extremely healthy and there's always the potential for further and larger acquisitions now.

With 63p or so EPS likely for the year just gone, a historic P/E of 11 or so is just far too low for a company which has delivered successfully for so long and has such growth potential in a number of sectors.

And the outlook is extremely optimistic:

"The Board looks to the year ahead with confidence, with the Group well positioned to continue to benefit from the UK's committed infrastructure spend. Renew's exposure to long term operating budgets continues to provide demand across our core markets."

[rivaldo] 01/10/2023 07:07

Good news for RNWH (via subsidiaries JBrowne and Enisca) with huge increases planned for spending on water infrastructure:



Extract:

"England’s water companies will pledge to invest up to £90 billion in the water and sewerage network in plans that will push up bills, particularly in the southeast.

They will submit their investment plans for 2025-2030 to the regulator Ofwat, proposing a significant boost to spending on infrastructure to tackle sewage overflows, harmful nutrients in rivers and water shortages.

Ofwat indicated this could total £89 billion over five years, up from £51 billion in the current 2020-25 cycle, as water companies react to public and government pressure to upgrade the UK’s infrastructure. The regulator has a year to review and approve the plans."

[eigthwonder] 12/9/2023 13:36

RNWH is built and run for long term growth - they'll stick to a steady growth in the dividend. Vistry is more a corporate finance led equity "story" and will do what it needs to boost its share price.

[wfcreserves] 12/9/2023 11:51

It was just a thought.

As I understand it the raison d'etre for the VTY buy back was that it was felt the company was undervalued and that a buy back would be better use of their surplus cash for the share price than a special or ordinary dividend pay out? They haven't finalised their thoughts on it though.

There are those on this board that think RNWH is similarly undervalued.

[lammylover] 12/9/2023 10:10

Totally different business - not a housebuilder affected by base rate and confidence. RNWH is a maintenance contract business. Big contracts on nuclear power stations, roads etc. Barriers to entry for this sort of work very high in terms of compliance. Non discretionary spend, high visibility on contracts etc. I'd expect RNWH dividends to continue to grow and also business to also grow through acquisition.

[wfcreserves] 11/9/2023 17:40

Hope they are not going to do a buy back instead of dividend like VTY are proposing.

[rimau1] 08/9/2023 16:12

Couldn’t resist a top up at £7.04.

[igoe104] 08/9/2023 10:01

VHE part of this biggest framework ever.

O’Connor Group, Tom Prichard Contracting and VHE Construction for the framework, which will run from 1 November this year until 2027 and is “set to be the biggest framework ever.

[wfcreserves] 31/8/2023 18:32

A jumbo number of trades (747) and many posted as unknown buy/sell after closing. Something going on behind the scenes?

[harrogate] 31/8/2023 15:59

That is a chunk of the Company gone through at 718p. Wonder who sold and where it has gone ?

[wfcreserves] 23/8/2023 12:55

Another hefty one today £105k @£7.12. One step forward two steps back!

[wfcreserves] 15/8/2023 09:37

A hefty £190k transaction @£7.60 reported today. And another £152k at similar price..

[rivaldo] 14/8/2023 06:38

J Browne have been appointed to carry out seven months of works by Affinity Water and will be working 7 days a week for that period in a major water infrastructure upgrade around Stansted:

[marknicho] 11/8/2023 11:17

See where we close. Be nice to get a breakout on volume.

[mattboxy] 11/8/2023 11:13

Seems to be falling back now but maybe they are starting to move again!

[marknicho] 11/8/2023 10:34

It seems there was a 20k off book trade reported around 10:35 from earlier in the day which was immediately followed by a wave of buyers looking at the trade log

[marknicho] 11/8/2023 10:30

I was watching L2 when it moved. Noticed previous breakout attempts have spiked up late morning and then its drifted down over the rest of the day. Not seen any news.

[mattboxy] 11/8/2023 10:17

Interesting price action today any info out there ??

[rivaldo] 09/8/2023 08:29

Nice plug for RNWH yesterday from fund manager Chris Mcvey of Octopus Investments, from 55m 15 seconds in:

- "great market positions"
- "inorganic and organic growth story"
- "good scope for upgrades"
- "good management team"
- "consolidating into other sectors"
- "trading on a very modest multiple"
- "they'll do more consolidation", i.e acquisitions

Which says it all :o))

[rivaldo] 03/8/2023 13:41

SCSW had a nice write-up of RNWH's interims in their June issue, with this positive summary paragraph:

"Net cash was £17m, down from £20m, despite spending £13m on a bolt on acquisition last November of Enisca, a water services business. And now of course, there are no pension scheme contributions, having bought-in the schemes last year, so with a further £80m facility from banks, Scott has plenty of firepower for an eps enhancing deal before long. Even without a deal, the longer daylight hours in H2 will repeat the usual seasonal bias so Renew looks well placed to beat the forecast of £51.2m pretax profit/eps 60.3p."

[rivaldo] 31/7/2023 11:07

Andrew Hore on i.i.i wrote this on Friday, rating RNWH a Buy:

"Engineering services provider Renew Holdings RNWH concentrates on maintenance work rather than large infrastructure construction projects, which makes it less risky than construction companies. There is a specialist building subsidiary, but this is small, and the growth is coming from the core engineering services provided to rail, water, highways, etc. The contracts are cost plus, so inflationary cost rises are passed on.

Renew Holdings increased interim revenues by 14% to £471.8 million, while organic growth was nearly 12%. November 2022 acquisition Ensica, which provides services in the water sector, made an initial contribution in the period. Earnings were 5% ahead at 27.4p per share. The interim dividend is 6% higher at 6p. Net cash is £17 million. The group order book is worth £890 million.

Full-year pre-tax profit should reach at least £61 million, although like all UK companies, earnings growth is held back by the higher corporation tax rate.

The prospective 2022-23 valuation multiple is just over 12, while the forecast yield is nearly 2.5%. Shore Capital recently pointed out that Renew Holdings has met or beaten expectations each year since 2006, while underlying earnings have grown at a cumulative annual growth rate of 18% since 2011. The share price has risen by more than 600% over the past 10 years. The consistent track record suggests that the rating is too low, and the shares are good value."

[thorpematt] 25/7/2023 18:34

Yep, you are right, the overlay seems to go out of calibration when extended past a certain period. Since ADVFN stopped using the trading view charts the options are a bit limited. I might have to look into posting my charts using a 3rd party image captire and so on....when I have some time....

[wad collector] 25/7/2023 09:53

Thanks Thorpemat , helps to show the longer term pattern.
Something odd about the FTSE250 index over that time though - shows flat on the graph but it has gone from about 10,000 to 18,000 over the period.