Renew Holdings Plc

1.00 (0.14%)
Share Name Share Symbol Market Type Share ISIN Share Description
Renew Holdings Plc LSE:RNWH London Ordinary Share GB0005359004 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  1.00 0.14% 727.00 86,387 16:35:00
Bid Price Offer Price High Price Low Price Open Price
720.00 726.00 732.00 724.00 728.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Gen Bldg Contractors-nonres 816.28 37.67 47.80 15.13 573.33
Last Trade Time Trade Type Trade Size Trade Price Currency
17:55:28 O 25,000 727.00 GBX

Renew (RNWH) Latest News

Renew (RNWH) Discussions and Chat

Renew (RNWH) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-06-07 17:20:24727.0025,000181,750.00O
2023-06-07 16:55:28727.063512,551.97O
2023-06-07 16:23:40727.281,0007,272.76O
2023-06-07 15:35:00727.0025,386184,556.22UT
2023-06-07 15:22:32724.002291,657.96AT

Renew (RNWH) Top Chat Posts

Top Posts
Posted at 18/5/2023 09:02 by rivaldo
Investors Champion are also keen on RNWH:


"Renew: looking good as always

Renew Holdings (AIM: RNWH), the Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, announced excellent interim results for the six months ended 31 March 2023.

Renew's activities are focused into two business streams: Engineering Services, which accounts for over 98% of the Group's adjusted operating profit, focuses on the key markets of Rail, Infrastructure, Energy (including Nuclear) and Environmental, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.

Specialist Building focuses on the Science, Landmark and High Quality Residential markets in London and the Home Counties.

Group revenue in the period increased 13.8% to £471.8m which includes a contribution from the acquisition of Enisca since December, as well as organic growth of 11.6%. Group adjusted operating profit was 8.8% higher at £28.3m with the adjusted operating profit margin 6.0% (HY22: 6.3%).

Across the two business streams…

Engineering Services activities saw revenues climb 15% to £435.8m with adjusted operating profit up 11.6% to £29.7m. Performance was driven by continued positive momentum in the Rail, Infrastructure and Environmental sectors, with the Engineering Services order book standing at a highly supportive £780m at 31 March 2023 (31 March 2022: £705m).

The Government's Autumn Statement re-confirming a commitment to a record £600bn investment in transforming the UK's infrastructure to meet the target of net zero carbon emissions by 2050 is good news for Renew. As are ambitious plans to scale up affordable, clean, homegrown power and build thriving green industries to boost the UK's energy security.

Within this, Network Rail, a significant customer for the Group is expected to invest £44bn over Control Period 7, which runs from 2024 to 2029 with expenditure expected to focus on operations, maintenance, and renewal of the national rail network. This plays to the Group’s strengths as does the Government's commitment to a rail decarbonisation programme including a significant investment in electrification programmes, as part of the overall UK target to deliver net zero by 2050.

Of the £24bn committed over a five-year period to England's strategic road network, £11.9bn of this funding is ringfenced for operations, maintenance and renewals which gives Renew a unique advantage from which it has continued to benefit.

With pressure on public expenditure as a result of the difficult macroeconomic environment, Renew is seeing an increased focus on maintaining and renewing existing assets instead of major infrastructure enhancement projects.

Revenue in the Specialist Building business was broadly flat at £36.0m (HY22: £36.9m), with operating profit £0.5m (HY22: £0.6m). The order book here has strengthened to £110m (HY22: £66.0m), providing good visibility for the second half and into 2024.

The net operating cash inflow was £24m and free cash inflow £22.6m, lifting period end net cash to £17.0m after £13.3m was incurred on acquisitions.

The overall Group order book at 31 March 2023 has strengthened to £890m (HY22: £771m) underpinned by long-term framework positions.

Trading has started well in the second half of the year and the strong forward order book underpins confidence that the full year will be in line with the Board's expectations.

The interim dividend was lifted 5.8% to 6.00p with the forecast full year payout of 18.15p reprsenting a yield of approx. 2.5% at the current 6732p share price.

This consistent performer, which is a popular stock for IHT planning portfolios, continues to deliver."

Posted at 18/5/2023 08:27 by lammylover
I've got a holding here and sleep well at night, as this is rock solid business.

However the share price anomaly for me, is because the dividend at around 2.3% doesn't encourage holding as a defensive stock.

Board need to increase divi to match other defensives or start to significantly grow business (by acquisition) to raise this share price.

Posted at 17/5/2023 09:31 by rivaldo
I've just explained above why a rerating is possible. Quiet apart from the acquisitions which are likely.

You want to go back further? In Jan'17 the forecast to Sept'19 was 35.8p EPS. RNWH achieved 40.5p EPS.

In Jan'18 the forecast to Sept'20 was 37.9p EPS. RNWH achieved 40.9p EPS - even with six months of Covid! Prior to that RNWH beat forecasts from earlier years in each of 2016, 2017 and 2018.

EPS has grown from 40.1p EPS to Sept'19 to 59.3p EPS last year - almost 50% in 3 years, and that's with Covid. It's therefore completely incorrect to say that RNWH "are not growing EPS".

Posted at 17/5/2023 09:14 by harrogate
You picked 2 years where the numbers in the market were reduced due to massive Covid uncertainty and the impact on RNWH was not as great as anyone thought. I hope you are right but I am less optimistic than I was that we can best by the high single figure percentage expected by Shore. Why would we rerate to 15 x which is needed to get to broker price targets. The brokers don't really answer thatWe are not growing EPS and the tiled these days is not attractive. We need a deal to move the share price
Posted at 17/5/2023 08:57 by rivaldo
There are many things to say about that post :o))

- back in December'20 the forecast to Sept'22 was for 45.4p EPS. RNWH actually achieved 59.3p EPS - beating that forecast by a whopping 30%
- similarly, back in Sept'20 the forecast to Sept'21 was for 40.8p EPS. RNWH actually achieved 50.1p EPS
- so it's best to ignore the broker forecasts, which are evidently and traditionally conservative not only in terms of organic growth but also because they (rightly) exclude potential earnings-enhancing acquisitions
- the perception of RNWH is shifting to a more exciting proposition with high visibility of future income, yet also involvement in multiple long term growth sectors and much less contract risk than other sector comparators
- institutions love companies which consistently outperform and have high security of income. Thus over time RNWH should benefit from a double whammy of outperforming or at least meeting conservative forecasts and a re-rating from the current multiple to one more befitting of RNWH's record, i.e imo around 15-16.

The analysts covering RNWH have converged around a price target of 900p-950p. I see no reason why the share price shouldn't move towards this from here, with further upside from acquisitions and/or trading statements.

Posted at 13/4/2023 10:04 by rivaldo
I'm a huge ISA investor wfc! And much of my RNWH holding is safely tucked away in ISAs as I consider there'll be further large capital gains to protect from here.

Plus the divi yield is a pretty decent 2.7% tax free in ISAs at these levels (inflation will drop like a stone soon).

Hopefully we'll see a rise in the share price in the run up to the results on 16th May.

I note from the latest major shareholder list that Octopus Investments now own 15.59m shares, or 19.77% of RNWH - this is nicely up from the 14.97m shares in their last holdings RNS (back in Nov'21!).

Posted at 12/4/2023 22:23 by wfcreserves
Yes the placing rewarded the placees who if I recall were a few selected institutions and directors. Shareholders who bought prior to the deal paid a higher price than they needed to. Luckily for those who held the deal worked well and the share price didn’t take too long to recover.

I agree that the interims should be good but the market knows that too and the share price is struggling to get back above £7. I still believe that the dividend yield is holding the share price back in a time of inflation and money being tight.

From a previous post I guess that you are not an ISA investor? But not everyone will want to sell their shares to crystallise a gain taxed as a capital gain and ISA investors have no need to worry about tax differentials.

Posted at 05/4/2023 15:57 by lammylover
RNWH share price being deliberately held below 700p to shake out loose shares. Up at 5% earlier, before ATs really kicked in, to drive price down yet again..

I'm expecting 700p to be breached soon..

Posted at 05/4/2023 09:02 by rivaldo
It's fallen from recent highs, but as harrogate says, RNWH has been a stable sleep-easy investment over the last couple of years whilst the rest of the market has lurched from one thing to another.

It'll only take a small uptick in investor sentiment, or an institutional buyer, to re-rate the share price to nearer those 900p-950p targets. Perhaps the upcoming interims will start the process.

Shore Capital have a 950p price target, but they also see scope for upgrades from their current 59.3p EPS and £32.9m cash pile forecasts:

"We believe EPS could be ahead of our current number and consensus by a high single-digit percentage"

More extracts:

"Renew^ (RNWH, Buy at 676p)

Order book indicates risk to the upside"


We maintain our revenue forecast of £870m for FY23F (2.5% growth). We noted following the AGM update on 1 February 2023 that this appeared to be increasingly conservative following 16% order book growth in Q1 to £861m. We continue to believe this given that the order book is set to be reported c.12% ahead of 31 March 2022. We anticipate that the adjusted operating margin will remain at the elevated level of c.6.9% with very low downside risk, given the cost-plus nature of the group’s contracts. Given the increased tax rate, we currently forecast minimal growth in adjusted EPS, but see scope for revenue upgrades.

We believe EPS could be ahead of our current number and consensus by a high single-digit percentage. Renew has consistently had a very high level of visibility with c.70% 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 presents an attractive opportunity for investors to benefit from the UK government’s commitment to spend £600bn on infrastructure from 2022 to 2027. Given the nature of Renew’s variable, cost-plus contracts, we believe it 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. We maintain our BUY recommendation and 950p DCF-based fair value (40% upside). As of yesterday's closing price, the shares trade on 11x our conservative FY23F EPS forecast and 7x on an EV/EBITDA basis. We consider this valuation to be anomalously cheap, given the company’s consistent c.30% ROIC, 18% adjusted EPS CAGR since 2011 and current net cash position."

Posted at 08/3/2023 09:40 by rivaldo

Wfcreserves, I'm quite satisfied with RNWH's share price performance over the last couple of years, i.e a rise of around 30%-35%. Especially when compared with the rest of the market. Particularly seeing the many, many companies whose shares have collapsed (i.e just yesterday WIN, SPT etc), even recent flat performance can't be complained about. And I just received a lovely chunky dividend too.

I said the following on the SUR thread recently. Sometimes you just have to accept that there are sellers out there, probably funds/institutional, who wish to take profits/need cash for redemptions/see opportunities elsewhere/change fund managers etc.

Take comfort from the fact that most people agree that RNWH are undervalued, and relax. It's likely imo that after this extended consolidation phase RNWH will go on another run upwards.

This year's H1 trading update will be on 3rd April, so only around 3 weeks away now. Hopefully there will be a nice run up before and after it given the recent AGM statement:

"Trading for the first quarter of the year has continued in line with the Board's expectations. The Group order book at 31 December 2022 was 861m (31 December 2021: 742m). The Engineering Services order book stood at 758m (31 December 2021: 687m)."

"We are pleased with the momentum within the Group. This, combined with the structural growth drivers in our regulated infrastructure markets, give us confidence in the year ahead."

I'm sleeping very easily with this stock.

Renew share price data is direct from the London Stock Exchange
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