Renew Share Discussion Threads

[harrogate] 22/1/2016 09:05

WHI - price target increased to £4.40

Renew Holdings (RNWH) – Buy – Strong and steady performer, a good stock for
2016
Market Cap £242m Price 387p Target 440p (425p)

RNWH has demonstrated steady outperformance over a protracted period,
benefiting from successive upgrades and growing the rating along the way,
while underlying sales have risen by c.13% p.a. for close to a decade in
the main business.
With global turmoil at the forefront of investors’ preoccupations from the
start of 2016, this is a good point to invest in a UK-focused business
which is well-managed and which delivers essential and fully budgeted
maintenance services. Good results in November saw PBTA and EPS rise by
22% and 25% respectively. We increased our forecasts in September –
following on from half a dozen forecast upgrades since our initiation on
the stock, in which time the shares have increased six-fold.
Bearing in mind the underlying characteristics of the stock, we raise our
target price to 440p (425p), and anticipate further double digit upside
potential as well as opportunities arising from a good year in prospect

[hvs] 21/1/2016 15:41

Thank you for above rivaldo.

AGM coimg up soon. Should get yet another bullish statement.

[dozey3] 19/1/2016 11:11

Rivaldo, as far as acquisitions are concerned they could do worse than look at Clarke (T) epic CTO, current market cap less than £40m. Clarke is a national electrical contractor dealing with blue chip clients and undertaking complex work. If a deal could be structured to keep Clarke's tip top management on board, and take over their main market listing, it would widen the potential shareholder base considerably. As for synergies one can only guess, but clearly there would be overlap of regional bases and Clarke's area of expertise would add to RNWHs already wide sphere of operation.
I am a moderately content holder of both.

[santangello] 15/1/2016 23:14

Octupus adding...up to 15% now, following their recent top up.

[rivaldo] 15/1/2016 08:11

RNWH tipped in the IC today...anyone got the full text?



"Clear skies ahead for Renew

The recent spate of winter storm damage to railway networks across the UK will have caused much distress to travellers. Yet for Renew (RNWH) - the only national provider of engineering maintenance services to Network Rail - it represents yet another chance to crank up its earnings. And transport is not the only end market from which the engineering services provider is reaping rewards. Through its 10 subsidiaries Renew has a solid track record of winning new work catering to the water utilities, energy suppliers and mobile telecoms operators. And operating in regulated industries means its income stream has a reassuringly high degree of visibility to boot.

etc"

[davidosh] 07/1/2016 15:50

Renew are mentioned on the SmallCap radio show as a company to do well in the current weather and flooding....

I give my thoughts on which companies will be busy....

[wad collector] 07/1/2016 12:10

The contracts may be predictable but the profit margins are not ; unexpected events happen in the world of construction. Or to take an example in the decommissioning world , Fukishima. What would a much smaller event do to RNWH balance sheet? A sudden profitable contract , or a disastrous expensive contract failure.
Sure the brokers are being fed information by management , but that does not make it reliable, unbiased and free from uncertainty.
Ultimately we should revisit this in 2018!

[harrogate] 06/1/2016 14:22

Wad - with respect that is bonkers - they have slowly but surely managed to get their operating margin in specialist engineering upto 5% - most of the work they do is under frameworks that are multi year - there is no jump in contract pricing coming our way with inflation at 0%. The brokers are not guessing they are being guided by management

[rivaldo] 06/1/2016 14:09

Yep, there are a number of potential catalysts for a jump in RNWH's EPS figures:

- acquisitions : the last acquisition was in August'14, so about time for another one given that RNWH must now be approaching positive net cash
- increasing momentum in the gas infrastructure sector for Forefront etc
- similarly for the wireless telecoms infrastructure delivery market for Clarke Telecom
- increased flood defence/alleviation/repair work as previously outlined

[wad collector] 06/1/2016 09:52

Harrogate my point was that it is hard to guess where the future earnings are going in a company that is seeing a lot of niche sector expansion. The 30p figure could easily turn into 50p by 2017 year end with some well judged contract pricing. The brokers are guessing , albeit with some information.
I too am happy to hold.

[glaws2] 06/1/2016 07:16

Positive comments on the market from Costain this morning - should read across to nicely for RNWH.

[harrogate] 05/1/2016 16:25

I thought it was pretty clear.

[hvs] 05/1/2016 16:04

I think they are fully up with events but not complaining or selling either.

lol !!!!!!

What did you say ??????

I is all confused now.

[harrogate] 05/1/2016 15:57

I am not sure why you say it is hard to guess when they have consistently hit the numbers and various targets over the last 5 or 6 years. I would personally expect them to do more than 30p in 2017 based on the ability to fund a couple of decent sized deals in 2016 and better than expected results from core as I see a number of their businesses in a sweet spot for the next few years. That is not to say that I am not amazed that the 2015 results set off the sort of rise we have seen. I think they are fully up with events but not complaining or selling either.

[wad collector] 05/1/2016 15:48

Clearly the value here is about future earning potential not current yield with eps of 2.5% of the share price Hard to guess how much it will rise. A lot or a huge amount?
WHIreland are guessing EPS of 30p for 2017.

[rivaldo] 04/1/2016 14:45

Cheers davidosh.

RNWH are also recommended in the January issue of WH Ireland's WHI Spy magazine out today, by their analyst Nick Spoliar, in connection with plays on the UK's economic growth "particularly with regard to planning and infrastructure spend".

I note that the government have started to throw around extra funds for flood defence/prevention - much more to come methinks.

[davidosh] 04/1/2016 00:14

Renew are positively mentioned in this audiocast and I cover the year behind us and stocks to consider for the year ahead...

[santangello] 03/1/2016 12:07

Yep, spotted that Rivaldo.....nice plug indeed.The bottom line should prove robust and ever growing again this year.Good luck and all the best to holders existing and new for 2016.

[rivaldo] 03/1/2016 08:01

Nice plug for RNWH in today's Mail on Sunday....



"One of the most memorable images of British storm and flood devastation in recent years – during the winter of 2013 and early 2014 – was that of the demolished railway line on the coast at Dawlish, South Devon.

The repair bill for this section of line, which connects Devon and Cornwall with the rest of England, came to £35million.

Among the companies invited to come to the rescue was engineering group Renew Holdings – a role that helped boost company profits and also returns for shareholders.

Among these is Miton UK Value Opportunities, a young fund whose managers scour the market for shares in firms they believe are not as loved as they should be. Renew is one.

George Godber, who runs the fund with fellow manager Georgina Hamilton, says: ‘Renew is one of our best performing holdings since we launched in March 2013.’

It fits the bill of the managers’ ‘ideal’ investment: an unglamorous business with a healthy balance sheet whose shares are undervalued, backed by a strong management team.

Godber and Hamilton closely study companies’ finances – making sure capital is well spent, cashflow is strong and debt limited or at least managed sensibly. And as added protection – all part of what the pair call their ‘safety check’ approach – no stock they buy can represent more than three per cent of the fund.

etc"

[hvs] 31/12/2015 13:27

Happy NEW YEAR to all holders here.

Its bound to be a good one in 2016 with Brian May doing the business.

[santangello] 29/12/2015 12:00

Indeed....may it end soon.

[hvs] 29/12/2015 11:57

Let the waters subside and then we has an UPGRADE

Really realyt nasty up NORTH poor people .

Water has no boundries .

[santangello] 29/12/2015 11:32

You can smell the contacts from here....a company that specialises in this work, is without doubt a 'preferred bidder' and with a fabulous track record.

Bless the poor soles inconvenienced by all this.

I have added further today accordingly, and await broker revised targets soon.

[rivaldo] 29/12/2015 09:28

From today's Times - the first point in particular is relevant:

"Railway lines across the north lie under as much as 4ft of water. Network Rail has drafted in engineers to repair damaged tracks and inspect 50 bridges and viaducts.

Experts said that the total damage from the floods that have hit parts of Cumbria, Lancashire and Yorkshire this month has reached more than £5 billion."

"The prime minister’s visit came as KPMG, the accountants, predicted that the cost of repairing and insuring damaged flood defences would reach £2 billion, with local councils forced to spend a further £500 million to £750 million on repairing roads and other infrastructure."