Renew Share Discussion Threads

[wad collector] 26/1/2024 09:07

And pushed the share price to a new ATH ; hold and prosper!

[rivaldo] 26/1/2024 07:33

Looks like a sizeable and likely 5 year framework contract win for Envolve (formerly Lewis Civil Engineering) - and it's in partnership with another RNWH subsidiary, QTS:



"Envolve Infrastructure awarded three year strategic framework appointment on Dŵr Cymru Welsh Water Security Fencing and Gates Framework.

Date Posted: 08.01.2024

Envolve has strengthened its strategic delivery partnership with Dŵr Cymru Welsh Water with a contract secured to deliver the all-Wales security fencing and gates framework, in partnership with specialist security fencing group business, QTS.

Envolve has been awarded the all-Wales position on the framework, spanning the entire Dŵr Cymru Welsh Water operating region. The framework will run for an initial three-year period with a further two year extension option, potentially taking the framework through to 2028.

Envolve has delivered work successfully for Dŵr Cymru Welsh Water since the company launched in 1984, with a trusted delivery team and proven transparent delivery model, combining civil engineering and water sector expertise to provide Dŵr Cymru Welsh Water a confident and trusted delivery partnership.

etc"

[rivaldo] 03/1/2024 09:19

Tipped for 2024 yesterday on Motley Fool:



"Benefitting from green infrastructure investment

Next we have Renew Holdings (LSE: RNWH). It’s an under-the-radar company that provides engineering services to maintain and renew critical infrastructure networks and is benefitting from green infrastructure investment.

Renew has a lot of momentum right now. For the six-month period to the end of September, group revenue was up 13% year on year while operating profit was up 18%.

And looking ahead, management was confident about the future.

“We remain excited about the significant growth opportunities across the Group, underpinned by the increasing national demand for the maintenance and renewal of existing UK infrastructure, which will continue to be a domestic priority regardless of the outcome of the next election“, said CEO Paul Scott.

This is another small-cap stock with a low valuation. Currently, the forward-looking P/E ratio is just 13. I see a lot of potential at that multiple.

That said, an economic deterioration in the UK is a risk."

[wfcreserves] 29/12/2023 09:58

As we approach the hopefully profitable New Year thanks go again to Rivaldo for all his news gatherings to keep us informed. We may disagree about the relevance of the dividend yield but we both have a interest in an upward trajectory of the share price

[dozey3] 23/12/2023 21:06

In early 2006 I held tens of thousands of these, and sold enough in subsequent years to ‘use’ the cgt allowance. What a PLONKER. Still holding plenty, and only selling now when they start buying back shares. That will indicate they’ve run out of ideas, like MRO another big winner and others. Or, in due course, my executors will sell!

[rivaldo] 21/12/2023 08:14

Nice £41,000 buy at the full 850p offer price to start the day.

[wfcreserves] 20/12/2023 07:45

Nice Xmas bonus for the directors. Dividend income is obviously irrelevant for them!

[rivaldo] 19/12/2023 10:44

As promised, a few more details on Numis' update note. They say Buy and raise their target price to 950p.

They conclude interestingly that RNWH's "financial characteristics and track record" increasingly look like UK services value providers rather than outsourcers and contractors, and RNWH trade at a 30% discount to the former.

They see the current £35.7m cash pile increasing to £57m by next September, enabling further acquisitions.

Their EPS forecast - as always! - is incredibly conservative for this year at 63.6p (up from 63.3p EPS last year), but once again this leaves room for plenty of upgrades during the year.

A few snippets:

"Resilience and differentiation

Renew delivered record FY23 results in line with or slightly ahead of our upgraded expectations, a testament to the resilience of the business model and differentiated offer even amidst challenging macro conditions. With the Group having made a strong start to FY24E we upgrade FY24-25E EBITA by 5-7%, continuing the track record of positive earnings momentum. This, allied to a strong balance sheet offering ample scope for further value and capability-enhancing M&A, means we
remain enthused despite the strong recent share price performance. We increase our PT to 950p (10.5x FY24E EV/EBITA) and retain a BUY."

"Collaboration benefits:

As outlined at the FY22 and 1H23 Results, collaboration between operating companies is helping the Group access framework opportunities that were historically out of reach, contributing to the strong organic growth delivered in the period. We think
collaboration is a key competitive differentiator for Renew, and could help sustain above-market organic growth in future years."

"Maintenance and renewal over enhancements:

The statement notes that in a weak macro backdrop the Government is often prioritising investment in maintenance and renewal of existing infrastructure, rather than large-scale enhancement projects. We think this plays into Renew's strengths in both the short term, and longer term (as ageing infrastructure requires greater spend on renewal and maintenance)."

[3800] 18/12/2023 15:55

try www.marketscreener.com/ under revisions Harrogate

[rivaldo] 18/12/2023 15:05

The article doesn't say - no doubt it will still be conservative and beaten again, as always!

[harrogate] 18/12/2023 13:52

But what was the Shore EPS upgrade - does anyone know? If not I will try to find out. Thanks

[rivaldo] 18/12/2023 13:50

The broker target prices indicate a good 20% upside from here, even without:

- any further earnings-enhancing acquisitions from the cash pile
- any further broker upgrades, which have been regular occurrences
- any further re-rating given the ROCE, the unbroken record of meeting or beating expectations since (from memory) 2006, the cash generation, the increasing infrastructure spend in RNWH's core areas etc etc

The divi yield here has never been high and is not the reason for investing - it's irrelevant. The rising cash pile has been and is always reinvested in growing the group via acquisition and thereby achieving group synergies and increasing cross-group co-operation and more and larger framework participations.

[wfcreserves] 18/12/2023 12:55

I'm sure we are all grateful for the rise in the share price

But as that Roland Head write up ended,

"I'm not likely to buy Renew Holdings while the dividend yield is so low. But I remain impressed by this business and believe it probably does have some degree of competitive advantage in its specialist niches – notably nuclear energy."

As the share price rises the dividend yield gets lower and will put off those who need income from their investment presumably those like Roland Head.

So my question would be how far can it go on the low dividend yield?

[davebowler] 18/12/2023 10:09

Citywire -
Shore Capital: Rerated Renew still undervalued
Shore Capital says it has been ‘too conservative’ on engineering group Renew (RNWH) and the rerated shares are still ‘undervalued’.

Analyst Tom Fraine retained his ‘buy’ recommendation on the Citywire Elite Companies A-rated stock, which was trading at 841p on Friday.

Fraine upgraded his Renew forecasts ‘having been too conservative following the strong full-year 2023 results’.

‘The recently announced 80% uplift in government spending on water infrastructure is well-timed, given Renew’s new framework wins… while spending plans on roads and highways are supportive for Renew’s earnings from full-year 2025,’ he said.

Although the shares have re-rated to above their historical average, Fraine said they are ‘still undervalued’ given the 33% return on invested capital achieved in 2023, ‘17% long-term earnings per share compound annual growth rate, and the net cash position’.

[harrogate] 18/12/2023 08:27

I'm still here. Enjoying the rise. It remains a core holding for me. Do we know what the Shore Upgrade is for 24 & 25? Thanks

[rimau1] 18/12/2023 07:51

Reads well and consistent with Riv, Wad and my views. Harrogate where art thou?!!!

[rivaldo] 18/12/2023 07:38

Shore Capital say Buy and have raised their forecasts (noting that their prior forecasts were too conservative, as I've repeatedly pointed out):



"Shore Capital: Rerated Renew still undervalued

Shore Capital says it has been ‘too conservative’ on engineering group Renew (RNWH) and the rerated shares are still ‘undervalued’.

Analyst Tom Fraine retained his ‘buy’ recommendation on the Citywire Elite Companies A-rated stock, which was trading at 841p on Friday.

Fraine upgraded his Renew forecasts ‘having been too conservative following the strong full-year 2023 results’.

‘The recently announced 80% uplift in government spending on water infrastructure is well-timed, given Renew’s new framework wins… while spending plans on roads and highways are supportive for Renew’s earnings from full-year 2025,’ he said.

Although the shares have re-rated to above their historical average, Fraine said they are ‘still undervalued’ given the 33% return on invested capital achieved in 2023, ‘17% long-term earnings per share compound annual growth rate, and the net cash position’".

[rivaldo] 14/12/2023 15:04

Confirmation that Berenberg have a 1000p valuation (increased from 950p):



And Numis have raised their target price to 950p after the results. I'll post more detail when I get time.

[wfcreserves] 14/12/2023 12:39

The view from the above roland head article.

"Renew's dividend yield is low due to the company's prudent dividend cover of three times earnings. But my preferred measure of EBIT/EV gives an earnings yield of 9%, which I think could be decent value.

A free cash flow yield of over 6% also looks reasonable to me.

I'm not likely to buy Renew Holdings while the dividend yield is so low. But I remain impressed by this business and believe it probably does have some degree of competitive advantage in its specialist niches – notably nuclear energy."

[igoe104] 13/12/2023 21:09

Roland head write-up.

[rivaldo] 13/12/2023 09:18

New two year highs now and almost at those all-time highs.

Good to see Walter Lilly expanding into Facilities Management:



"Walter Lilly’s Facilities Management Division Continues to Grow
6th December 2023

Walter Lilly is delighted to be expanding our ability to meet the needs and expectations of our clients, with the introduction of a dedicated FM Projects team.

Our Facilities Management Division now provides two unique service offerings across our three sectors of high quality residential, landmark and heritage, and science and higher education:

FM Contracts – planned, proactive and preventative building maintenance.
FM Projects – construction services of bespoke projects.

We are often asked to undertake additional work within a property that is outside of the maintenance scope, and we are therefore excited to further expand our service offering.

FM Projects will be responsible for delivering contracts up to the value of £2.0 million, with our cost effective and flexible team for new and existing clients, backed by the quality and expectations of the Walter Lilly brand. Clients will benefit from utilising our trusted supply chain and support from our technical in-house expertise of engineering, design management and temporary services.

The team are currently working across London and the home counties on projects in both extremely high quality homes, listed buildings and complex scientific research facilities. The projects range from remodelling small office spaces and laboratories within a science research facility, external waterproofing and repairs of lightwells to MEP upgrade of a listed building. A complete non-structural remodel is being carried out on a five-story Chelsea townhouse, including the design of a new kitchen, bathrooms, hardwood flooring, joinery, decorations, and new MEPH, AV & lighting throughout.

etc"

[rivaldo] 05/12/2023 14:50

"01/12/2023

Network Rail has named AmcoGiffen as one of the contractors selected to deliver the East Kilbride Enhancement Project.

The work will provide 22.4 single-track kilometres of electrified railway as part of the Scottish Government’s wider plans to decarbonise passenger services across Scotland’s Railway.

Alongside our sister company QTS we will deliver:

Relocation of Hairmyres Station
Upgrading and accessibility work at East Kilbride station
Accessibility work at Giffnock station
Parapet modifications
Earthworks to the New dynamic loop (QTS)

Other work taking place includes electrification of the route between East Kilbride and Barrhead and a 1.4-kilometre extension of the existing loop at Hairmyres.

Mobilisation and enabling work will start at Hairmyres in January 2024. We will be relocating the station 600 metres west and constructing a fully accessible, two-platform station that will include a footbridge with lifts.

South Lanarkshire Council and Strathclyde Partnership for Transport will construct a large park-and-ride and bus interchange facility adjoining the new station. The new station will be able to accommodate up to 7-car rolling stock and will include concourse areas with passenger seating, and accessible passenger and staff welfare facilities."

[mattboxy] 30/11/2023 22:49

Presuming that's a fund so maybe a holding announcement if it's an increase. Although it is still less than 0.5% of issued shares so maybe not