Renew Share Discussion Threads

[wad collector] 15/2/2017 14:02

Excellent ; despite being xd 3 weeks ago now moved to new high ( About 20 yr high by my recollection). And yet still looks like more to come....

[rivaldo] 09/2/2017 15:22

Nice £89,000 buy at 455p just reported.

OT : hvs, succinctly put :o))

[rivaldo] 08/2/2017 07:25

WS Atkins released a solid trading statement this morning, and these extracts in particular bode well for RNWH's involvement at Sellafield and in infrastructure generally:

"Our nuclear business, which represents around 70% of our energy segment, has performed well in the period. We are encouraged to see an improved project flow at Sellafield"

"Trading performance in our UK and Europe business has continued strongly through the third quarter, with good delivery on a number of projects in the period. We continue to address strong, albeit competitive, markets as the Government supports infrastructure projects in energy, high speed rail, highways and airports"

[deadly] 06/2/2017 12:44

Market's pleased he's gone!?

[rivaldo] 06/2/2017 12:27

Congrats to John Samuel, who's done a sterling job in steering RNWH to a near-£300m m/cap.

Obviously very amicable given he's staying for the 12 months or until a successor FD is in place.

[glaws2] 06/2/2017 11:12

See that FD has quit, albeit with a 12 month notice period.

[rivaldo] 03/2/2017 16:03

Good to see a £23,000 buy at 448.59p just reported.

Finncap's 586p would do me fine in a few months' time.

[wad collector] 02/2/2017 12:44

I would settle for 585p.

The vagueness in share price forecasts is the timescale. No broker commits to one. The share price will doubtless reach 586 eventually , the real Q is when?

[rivaldo] 27/1/2017 10:40

Evidently not Harrogate :o))

Finally got round to reading Finncap's 24 page initiation note. Really good extracts re cash flows, ROCE etc:

"The cash flow characteristics are very strong, with the supply chain paid a
week after Renew is. Operating cash flow conversion from EBIT averaged
129% over the past three years (109% over the past five)"

"ROCE at September 2016 of 63% (post tax, lease adj.) is high and rising. We
forecast 78% at December 2017. This return is supported by the low capital
intensity of the business (capital expenditure averaged only 0.1% of sales over
the past three years) and the strong cash flow characteristics"

"Renew’s peers are valued at an average 2017 market cap/FCF of 20.3x. We
have applied a 10% discount to this in setting our price target of 586p.

Renew has generated the highest average free cash flow to capital employed
over the past three years within the peer group, and is only second to Fulcrum
on a forecast basis. Yet it is valued at the lowest 2017 market cap/free cash
flow.

As Renew continues to deliver at least in line with forecasts and expands
services or the client base with acquisitions, we expect the valuation gap on a
market cap to free cash flow basis to be removed"

[harrogate] 25/1/2017 17:28

Hi. Did anyone go to the AGM today? Any questions asked or info provided over and above the AGM statement.

[davebowler] 25/1/2017 11:28

Finncap;
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. Renew is a true services business with strong cash characteristics and minimal need for capital, supporting ROCE of 60%+ (post tax). With ROCE significantly ahead of the peer group, a strong balance sheet and the prospect of reinvesting cash flow into enhancing acquisitions, we initiate with a Buy rating and a 586p target (38% upside).

[rivaldo] 25/1/2017 09:51

Finncap have based their 586p target on the excellent free cash flow and ROCE, as per this snippet:

"Cash flow and potential to reinvest in high returns undervalued. Renew’s
ROCE is at the top of our peer group but market cap to free cash flow is at the
bottom, suggesting the cash flow and potential to reinvest in a high returns
business is significantly undervalued. Our target price is 586p (38% upside)"

[mfhmfh] 25/1/2017 09:00

I'll take 586p all day long

[harrogate] 25/1/2017 08:40

Just saw that - hard to justify on the current 17 and 18 numbers that are out there.

[rivaldo] 25/1/2017 08:15

Finncap initiate coverage today with a Buy and a 586p target :o))

[harrogate] 25/1/2017 07:37

Indeed - could probably have written that statement myself and got it about right! I like no surprises in my investments and this is why I stay here

[rivaldo] 25/1/2017 07:06

Excellent AGM statement:



- trading in line
- Giffen being integrated well
- order books nicely up, particularly the higher margin Engineering division
- good cash generation

Can't ask for more at this stage of the year.

[mfhmfh] 24/1/2017 16:36

trading update/AGM tomorrow according to website. hopefully share price can push on from here.

[rivaldo] 18/1/2017 15:50

Bouncing now - looks like a buying opportunity from a hastily overdone markdown.

[rivaldo] 13/1/2017 14:53

473,503 shares just reported traded at 434p, and an immediate tick up afterwards.

[rivaldo] 13/1/2017 11:34

Clarke Telecom's workload is definitely picking up - here's another example, working with Vodafone and Telefonica to get another telecoms tower approved:

[davidosh] 09/1/2017 16:16

I have arranged a meeting with the directors as a belated results presentation for next Monday at 11am in the City. If interested in attending then email me via my mellomeeting.co.uk website with your full name for the reception.

[glaws2] 09/1/2017 13:24

Carmensfella - did I read that you were organising a PI meeting with RNWH management next Monday. I would very much like to attend as a long term holder.

Thanks

Glaws

[rivaldo] 05/1/2017 11:53

AMCO have invented a new safety screen product which is the "the future of tunnel working" in the rail industry and are demonstrating it to the industry later this month: