Share Name Share Symbol Market Type Share ISIN Share Description
Renew Holdings LSE:RNWH London Ordinary Share GB0005359004 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +2.00p +0.48% 422.00p 420.25p 428.00p 432.75p 425.25p 432.75p 45,614 16:35:01
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 525.7 19.4 17.1 24.7 262.98

Renew Holdings Share Discussion Threads

Showing 8701 to 8725 of 8725 messages
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Finncap initiated coverage not so long ago with a price target of 586p, on the basis that: - ROCE is significantly ahead of the peer group - strong Balance Sheet - cash flows to be reinvested into earnings-enhancing acquisitions - most of RNWH's work is on large, long-term, essential infrastructure frameworks - high 65% visibility on next year's sales - high barriers to entry The outlook only 2 months ago stated: "The Board is confident that Renew will achieve its financial target of a 4.5% Group operating margin and report results in line with market expectations for the year ending 30 September 2017." Enough said.
Hi. Not much to discuss when there is no news. Volume has bene light and it seems to me that SETS amplifies the daily moves. I thought it was a bit ahead of itself at the high £4 mark early in the year and I think it is general drift in the absence of a deal or any news. It has drifted down like this before and they have always turned out to be buying opportunities. We know they will do the 2017 number and 2018 is probably secure as well. Doubt there will be much going on deal wise with them looking for a new FD at the moment. If it fell sub £4 I would be keen having sold a few in the £4.70 - £4.80 range. Still my largest holding but there are not many urgent reasons to buy I suspect.
This is beginning to look like an inexorable descent with little discussion here. I am conscious of wadcollector's comment that much future potential is already priced in and that it is not invulnerable to drops in the wider markets, of which there do seem to be hints now. Would value wider opinion here.
Nice and steady at present. Two 125,000 share trades through today at 435p, so maybe a bit of an overhang cleared.
wad collector knows everything.
Major new £2.4m 7-month gas works contract for RNWH's Forefront Utilities in Brixton: Http://
Looks like that top-up opportunity has now drifted past. The only thing that I don't like about RNWH is that the yield is not that impressive , a lot of future potential is priced in , so although it is seen as defensive it may still see a big drop if the wider market drops.
wad collector
Finncap has today issued its quarterly note on the Support Services sector. RNWH is one of its 7 favoured picks (amongst the others is ACL, which I also own), with a Buy and a 586p target price: "Invest in defensive markets where share can be taken Renew - Renew's repair and maintenance services are fundamental to the UK's energy, gas, water, telecoms and rail infrastructure. The order book typically provides visibility on 65% of next year’s sales, but in reality the vast majority of Renew's work is on large, long-term, non-discretionary frameworks. This supports attractive and relatively low-risk growth prospects."
Been dangling a buy order there myself , but not been filled yet. Wider market seems to be in a strange place at the moment , surprised the political uncertainty has not flattened the market.
wad collector
Looks like some are taking advantage of the fall now - the latest buy is at 436.25p.
Big fall these last few days; buying chance?
Nice write-up on GCI yesterday, this extract in particular: Http:// "No worries Relatively new CEO Paul Scott told GCI he has no stand-out issues to worry about at the moment and our conversation underscored the impression of a company performing well. Net debt was £3.5 million at the half year but this is expected to move to a net cash position by the year end. The active M&A pipeline is said to be ongoing."
Managed to get's the tip, which doesn't even mention Finncap's 586p target: "Aim-listed Renew Holdings, which we bought on November 25 at 396p, posted half-year results on Tuesday and is living up to those hopes. It is among the more speculative constituents of this portfolio. This specialist engineering business has successfully captured a number of niche sectors. Skill requirements are high, which is a helpful barrier to competition; contracts tend to be long, giving reassuring sight of future revenues, and customers are generally exceptionally large businesses or government agencies. That adds up to a compelling picture. The core areas Renew serves tend not to rest on discretionary spending, either. One is transport infrastructure, with Network Rail a major client and projects involving both maintenance and new installations. Another is the provision of environmental services in the fields of clean and waste-water distribution, flood risk controls and nuclear waste management. Whatever happens in the economy, there is limited room for this spending to be cut or deferred. In fact, looking ahead, Renew should benefit from substantial projects in all these areas. For these business segments, Renew's revenues for the half year are up 6pc, profit is up 14pc and the margin has improved 9pc. The order book is up 5pc. All of that is driving the dividend, with the interim payout up 13pc to 3p. Renew has a further division where the outlook is less rosy. This is a specialist building operation which enlarges or maintains luxury homes and period buildings in and around the capital. Revenues here account for about 18pc of total but the margin is lower and the order book down. The gamble here is that the factors outlined above play out and that cash is returned to shareholders. Numis has set a target price of 500p. We remain very positive."
RNWH have been tipped today by Questor in the Telegraph as a "small cap share for surefire income" - anyone got access? Https://
Rivaldo That explanation would certainly fit. Five years is a long time to get away with under investment. There is nothing wrong with prudence in depreciation policy either.
Thanks for the update from Simon Thompson penpont. Looks like he's aiming for around 530p or so. Wilmdav, that's surely the point about RNWH - they barely require any cap.ex as they're providing services/expertise/manpower. Another positive article in the IC (the rest is subscriber-only).... Http:// "Engineering drives Renew Renew (RNWH) has posted a record set of results for the half-year to the end of March 2017, with adjusted operating profit 15 per cent on the same period last year and adjusted EPS up 16 per cent. These improvements were largely driven by the performance of the engineering services business, which accounts for 80 per cent of group revenue. Revenue here was up 6 per cent to £234m, while the order book increased by 5 per cent to £435m. The division also increased margins by 40 basis points to 5.1 per cent. One notable contributor to the division's performance was the environmental business, which saw benefits from the ramping up of the AMP6 regulatory period."
I've just updated the RNWH page on the website I use to keep track of my investments. It highlights two persistent features. I don't recall ever seeing a period of 5 years during which free cash flow per share has exceeded eps by such a large margin. Normally fcfps trails eps. See chart "prof-cash". This is all the more remarkable because they paid out around £3m for pension deficit reduction each year between 2012-14 and £4.3 and £4.7m in 2015 and 2016 respectively. This will continue for a couple of years at least. Over the same period, the ratio of capex to depreciation is unusually low. See chart "capex". The two characteristics are obviously related. Either RNWH are over-depreciating; or their business model is such that not much capex is required; or they are starving the company of investment that should be made. Http://
Thanks for those rivaldo. Simon Thompson at the IC updated his views yesterday: 'Half-year results from Renew (RNWH:462p), an Alternative Investment Market (Aim)-traded engineering services group specialising in the UK infrastructure market, and on the nuclear, rail and water industries in particular, were bang in line with analyst expectations. Adjusted pre-tax profit increased by 11 per cent to £12m on revenue up 9 per cent to £289m in the six month trading period and, with the engineering services order book up 5 per cent to £435m to maintain the group order book at around £517m, analysts expectations of a similar revenue performance in the second half are fully covered by orders. Clearly, the board is confident of delivering the 16 per cent increase in full-year EPS to 31.7p as analyst Nick Spoliar at broker WH Ireland predicts as they raised the half-year payout by 13 per cent to 3p, suggesting a 9p a share full-year payout is on the cards. They can certainly afford to be generous as net debt of £3.5m at the end of March 2017 is expected to turn into a net cash position of between £4m and £5m at the end of September 2017 after factoring in the second-half profit and cash flow. The solid stream of earnings generated by supplying critical infrastructure maintenance services, which produce a return on capital employed north of 60 per cent, looks well underpinned by a raft of contracts in rail infrastructure, the AMP6 cycle in the water industry, and the nuclear industry where Renew is an established player in both decommissioning and decontamination work. Also, the board's decision to withdraw from its loss-making low pressure, small diameter gas pipe replacement activities is a sensible one as it is expected to return Renew's gas business to profitability in the next financial year, albeit it will result in £500,000 of one-off cash costs in the second half and a £5.8m non-cash impairment charge. The bottom line is that having first recommended buying the shares at 258p ('A small-cap breakout', 14 Aug 2014), and banked dividends of 18.5p since then, I am comfortable advising running profits on this holding having previously recommended top slicing at 470p last month ('Taking profits', 18 Apr 2017). With the shares rated on a forward PE ratio of 15, my instinct is that a bull market top probably lies somewhere between the two target prices of the brokers who cover the stock: WH Ireland's (470p target price) and finnCap's (586p). Run profits.'
Interview with the FD, mostly about their Yorkshire operations, but a nice snippet about the Giffen acquisition: Https:// "Renew has also benefitted from its recent takeover of Giffen, which specialises in delivering mechanical, electrical and power services for Network Rail and London Underground. Giffem was acquired from private equity firm Rcapital in a £7m deal. Giffen Holdings, which is based in St Albans, specialises in mechanical, electrical and power services within the railway environment employing 123 staff. Samuels added: "We didn't have London Underground as a customer before and now we can offer services from the rest of our rail activity that we've worked on such as civil engineering and particularly tunnel work to London Underground. "The other way to build the business is to grow it by expanding the service offering that we offer to Network Rail, we have a few projects where we have tendered jointly with Amco and Giffen together for projects that neither Amco nor Giffen would have been able to apply for before.""
Unfortunate typo at start of 4th para from the end!
Thanks for the IC buy tip penpont. And another one here rom i.i.i.....I suspect the breakout will be upwards: "Does Renew Holdings deserve premium rating? By Lee Wild | Tue, 23rd May 2017 - 17:24 In the dark days of summer 2009, as the market began its fledgling recovery from the financial crisis, there were bargains to be had. Turns out Renew Holdings (RNWH) was one of them. In the past eight years its share price has surged by 2,030%, up from 23p to a high of 490p, and latest record results suggest the business has further potential. Renew, which runs engineering contracts for nuclear power plants, Network Rail and London Underground, increased adjusted pre-tax profit by 11% in the six months ended 31 March to £12 million. With revenue up 9%, adjusted operating profit margin rose by 20 basis points to 4.2%. At the core engineering services division, operating profit jumped by 14% to £11.9 million on sales up 6% to £234 million. Margin was 5.1%, underpinning management expectations of hitting its group margin target of 4.5% for the full-year. The order book is steady at £517 million, and expected revenue for the second half of the financial year is fully secured, we're told. Chief executive Paul Scott told me there were "no real standouts" during the first half, but that income momentum from two clients in the water sector - just beginning the third year of its sixth asset management period (AMP6) of investment - were "helpful". And the £7 million acquisition of Giffen Holdings in November is already paying off, broadening the services offered to the rail industry. Previously, Renew did not offer electrical control and power distribution services. It does now. It's also gained London Underground as a client, which it might otherwise have struggled to do. And Giffen is also becoming more ambitious in the jobs it pitches for, which can only be good for business. And management is smart enough to know when it's time to cut losses, too, exiting their loss-making low pressure, small diameter gas pipe replacement business. It's meant booking a £5.8 million non-cash impairment charge, and there'll also be redundancy costs, but it does focus the unit on higher margin medium pressure work, which should get the gas operation back into profit next year. Renew will also swing from net debt of £3.5 million, because of the acquisition, to net cash by the end of September. With the interim dividend hiked by 13% to 3p, the total payout for the 12 months is tipped by analysts to reach at least 9p. That gives a prospective yield of 2%. It's not the most generous, but it is expected to continue growing in the double digits. At 459p, Renishaw trades on a forward price/earnings (PE) ratio of 14, although City estimates only factor in mid-single-digit earnings per share growth, suggesting share price progress from here might be more sedate. However, Guy Hewett at finnCap argues that Renew is still cheap. "Renew's strong track record of delivering essential services on large, long-term frameworks can command a higher rating," says the analyst, repeating his 586p price target. Howard Seymour at house broker Numis Securities repeats his 'add' recommendation and 500p target, which would put Renew on a PE of 14.5 based on profit forecasts for 2018. There is an interesting chart formation here, too (see trendlines drawn on chart above), which might imply that a breakout either way is possible soon. One to watch."
I suppose the worst that can be said here is that the share price rise has stalled in the last 6 months ... I'd have said the last 3 months, not the last 6 - from looking at a chart, the share price was around 400p six months ago in November, about 450p or a bit above three months ago in February, now still a bit above 450p. Gengulphus
I suppose the worst that can be said here is that the share price rise has stalled in the last 6 months , but it may be gathering its breath for the next leg up. The price is no bargain on EPS but it is all about future potential. Sitting on some hefty paper profits (fortunately ISAed) but not tempted to sell (Might trade some out if there was another share price surge). Hold and prosper...
wad collector
IC comment: Renew drives performance through engineering services TIP UPDATE Renew Holdings PLC (RNWH) Renew (RNWH) has posted a record set of results for the half year to the end of March, with adjusted operating profit jumping 15 per cent on the same period last year and adjusted EPS up 16 per cent. These improvements were largely driven by the performance of the engineering services business, which accounts for 80 per cent of group revenue. Revenue here was up 6 per cent to £234m, while the order book increased 5 per cent to £435m. The division also expanded margins by 40 basis points to 5.1 per cent. One notable contributor to the division's performance was the environmental business, which saw benefits from the ramping up of the AMP6 regulatory period. The group has taken a non-cash impairment charge of £5.8m following disappointing performance from the gas business. At the end of April 2017 it decided to withdraw from loss-making low pressure, small diameter pipe replacement activities to focus on medium pressure, which it says are "lower revenue but...consistently profitable". Chief executive Paul Scott said the group would remain acquisitive, but had "fine tuned the search criteria" as a result. The recent acquisition of engineering company Giffen has resulted in a net debt position, but the group is expecting to be cash positive by the end of the financial year. Analysts at WH Ireland are forecasting profit before tax of £24.9m, giving EPS of 31.7p for the September year-end (from £22.3m and 27.2 in 2016). IC VIEW: Renew continues to impress with strengthening underlying metrics. Trading at a little under 15 times forecast earnings, it is a touch cheaper than it was when we tipped it. These results compel us to reiterate our earlier recommendation. Buy. Last IC view: Buy, 440p, 23 Feb 2017
Finncap have reiterated their Buy and 586p target, saying as follows: "Renew has reported a strong set of H1 results with sales up +9%, operating profit up 15% and EPS up 16%. Operating margins have improved from 4.0% to 4.2% and the group is on target for 4.5% for the year. Expected revenue for H2 is fully secured and a move into net cash is anticipated by the end of the financial year. We make no changes to our forecasts and reiterate our view that Renew’s strong track record of delivering essential services on large, long-term frameworks can command a higher rating." And importantly imo: "The group focuses on directly delivering essential works to critical infrastructure which are mainly funded through clients’ operational expenditure budgets."
Chat Pages: 349  348  347  346  345  344  343  342  341  340  339  338  Older
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