Renew Share Discussion Threads

[rivaldo] 15/11/2019 11:33

Looks like a big lump of work through to next April:



"VHE return to Swadlincote
06 November 2019

VHE have returned to the Swadlincote site on the border of Derbyshire, Leicestershire and Staffordshire to carry out infrastructure works on behalf of client Harworth Group.

Following the successful completion of the earthworks phase to prepare the land for residential development VHE negotiated the full package of infrastructure work. Construction works include the Section 38 spine road into the site, the Section 278 entrance roundabout and the Section 104 drainage elements relating to the roads and balancing ponds.

The construction of the main foul water pumping station will form part of the main works. VHE will be coordinating service installations by utility installers, building both the substation and gas governor housing and installing the main section of street lighting. The works require the procurement and installation of large diameter culverts that will facilitate the diversion of an existing brook to enable the roundabout to be built and access to the development area. Current works will tie in to the existing deep combined sewer drain and the new foul mains.

The works are being undertaken under an ICC design and construct contract with the appointment of Curtins as VHE’s designer under a novated agreement. Works are on schedule to complete April 2020.

Previous works on the wider site included the remediation of a former open cast site with ground improvement by Rolling Dynamic Compaction (RDC). VHE created a 13 Hectare development area, SUDS ponds, drainage and installed a temporary bridge and access. In-house stabilisation equipment was used to create an access and compound without the need to import material and we used the latest solar powered CCTV security system to further enhance our sustainability credentials. The site is now being developed by Avant Homes."

[rivaldo] 11/11/2019 10:07

RNWH are getting additional work on train lines from recent flooding - good to see them completing it ahead of schedule at the end of October:



I imagine the current additional flooding in the North will lead to a further influx of rail repair work.

[wfcreserves] 08/11/2019 13:26

Well most of the previous acquistions were completed under the aegis of Brian May who as I will recall was given a "star" rating by this board and deservedly so.

The trading update suggests results will meet market expectations. The market so far has not exactly been tripping over itself, in spite of all the good news as reported on here, to get anywhere near the levels achieved before the last acquistion, which should have enhanced the share price, was announced so were their expectations too high beforehand?

All I am asking is for possible reasons why this should be? I have been a long time holder since Lovell days and what had been a rollercoaster ride up until May took charge was gradually becoming more sedate.

[rivaldo] 08/11/2019 11:43

Hmmmm. GAN, SDI, KWS, VLE, SCE etc etc....I have a long list of AIM winners, with some big losers too. That's the nature of investing. AIM has been a big success for me. And RNWH has been one of those big successes.

RNWH also has a very good record over time as regards its acquisitions. Forefront was the exception, but you can't win them all. The larger acquisitions have been very successful, including the latest - QTS.

The encouraging year end trading update means we know the upcoming results and outlook will be good and confident respectively. And the low debt means RNWH should be in a position to make more acquisitions at any time soon largely or entirely from existing resources.

[wfcreserves] 08/11/2019 11:33

Anyone think the Pis are possible a bit wary of possible new deals being done leading to more dilution of the share capital but with discounts available for a favoured few?

The upcoming results will be a test of whether the results from the latest acquisition was worth the dilution. At least for the small shareholder.

I remain to be convinced that AIM, with its dubious reputation,is a suitable market now despite the advantages for those wishing to avoid inheritance tax.

[rivaldo] 08/11/2019 07:27

RNWH's Lewis Civil Engineering feature the recent Bristol Water contract win here:



"Today, 1 October, we can announce the award of new Network Maintenance Partnership Contracts worth £75 million as the latest milestone in implementing our new delivery model. Lewis Civil Engineering and TK Gallagher will work with us as we take back control to deliver positive impact for the communities we serve.

Moving forward all planning, scheduling and prioritisation work will be done by our in house team allowing the new contractors to focus on the delivery of the work. This will result in a much more customer focused approach putting people at the heart of our everyday work.

“This is a major milestone in making us ready to achieve our ambitious business plan, Bristol Water For All. Together with our new network maintenance partners; T&K Gallagher and Lewis, we will deliver for our customers and our communities. We recognise the impact of our maintenance work on people’s lives and so we have worked tirelessly to select partners who share our values and ambition to deliver for people. This is not just a new contract but a new way of working and a new approach to our maintenance work” Mel Karam, Bristol Water, Chief Executive

The new contractors will start with us on 1 October and will run until 2024 and will deliver maintenance work across our supply area.

etc"

[rivaldo] 04/11/2019 11:41

The November issue of Master Investor magazine is out this morning - great to see RNWH tipped as one of three AIM companies ready to bounce. From page 29 onwards - here's the conclusion:



"Overall, I believe that the shares look like a good bet, with management being a particularly good asset here. What's more, the business is strongly cash generative, with a £16.6 million inflow from operations in 2018, and the current order book represents just over a year's worth of historic revenues.

Notable growth opportunities come from Network Rail's current Control Period 6 (CP6) five-year financial period, which has had £48 billion allocated to its budget, with an increase of around 25% in planned spending on operations, maintenance, support and renewals activities, compared to CP5.

Renew shares have slipped a few percent since the October trading update, which seems unfair given that it was in line with expectations and there were no negative points.

In September this year, analysts at Peel Hunt initiated coverage on the shares and slapped on a 500p target price, implying upside potential of 33%. Top management seems to agree with that view, with the chief executive, chief financial officer and another director recently splashing out a combined £50,000 on buying the shares."

[wad collector] 01/11/2019 11:27

The market has not really taken the Green issues very seriously ; the strength of the oilers is testament to that . It is almost as if nobody believes the necessary changes will happen...

[rivaldo] 29/10/2019 09:11

Good to see RNWH receiving the Green Economy Mark from the LSE - the increasing number of investment funds moving towards sustainable and environmentally friendly investment criteria make this a useful piece of recognition:



Extract:

"With an estimated $30 trillion in assets under management now implementing sustainable investment strategies, investors around the globe are increasingly focused on sustainability. This figure is set to increase, with investment in Environmental, Social and Governance (ESG) based strategies growing by 20 per cent annually.

To support the transition to a sustainable low-carbon economy, London Stock Exchange recently launched two new initiatives on its markets: the Green Economy Mark for equities and the Sustainable Bond Market (SBM). Together they are designed to support issuers, companies or investment funds, to raise sustainable capital and demonstrate their credentials.

London Stock Exchange’s Green Economy Mark recognises companies and investment funds listed on the Main Market and AIM that derive 50 per cent or more of their total annual revenues from products and services that contribute to the global green economy so called “Green Revenues”.

The 50 per cent threshold is important because it captures not just the ‘pure play’ issuers that immediately come to mind, in fields like renewable energy and waste management, but a wide range of issuers contributing to environmental solutions. The 74 equities that have received the mark include business across sectors, from manufacturing to transport, agriculture, chemicals and financials."

[wad collector] 28/10/2019 15:42

Almost as if they are trying to talk the price down. (Not that it needs much help recently).
Then in a few months it will be the star performer ?

[harrogate] 28/10/2019 13:35

Thanks for sharing that. Each to their own but the comment on debtors and creditors seems odd to me. Unless he has some numbers we don't he must be basing that on the March 19 interims. Looking at these debtors and creditors each look about £20m higher than March 18. But of this the acquisition of QTS seems to account for about £12m. So not sure £8m or so on those numbers in a £600m t/o business is meaningful. Given history of paying down debt and increasing dividend as well as £4m going to that pesky pension fund deficit I don't see cash conversion as too much of an issue

[sharw] 28/10/2019 11:26

Liberum only rate hold with target price 360p.

‘There are significant opportunities in rail. However, cash conversion has been weak and there has been an unhealthy mix of increasing receiveables and rising creditors. We would want this to be resolved before turning buyer.’

[hardupfedup] 23/10/2019 14:11

Large volumes here today imo

[rivaldo] 18/10/2019 12:07

Indeed. Good to see the CFO joining in too.

At 370p RNWH are on a current year P/E of 8.9 and a divi yield of 3.2%. Far too low imho.

[glaws2] 18/10/2019 11:10

Looks like they are filling their ISAs

[cwa1] 18/10/2019 10:54

Solid show of support from multiple PDMRs...



Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces that Paul Scott, Chief Executive, Andries Liebenberg, Executive Director and Sean Wyndham-Quin, Chief Financial Officer have today purchased shares in Renew.



Paul Scott purchased 5,450 shares of 10p nominal value ('Ordinary Shares') in the Company at a price of 367p per share, representing 0.007 per cent. of the issued ordinary share capital of the Group. Following this transaction, Paul Scott's holding in the Company has increased to 52,862 representing 0.070 per cent. of the issued ordinary share capital of the Company.



Andries Liebenberg purchased 5,450 shares of 10p nominal value ('Ordinary Shares') in the Company at a price of 367p per share, representing 0.007 per cent. of the issued ordinary share capital of the Group. Following this transaction, Andries Liebenberg's holding in the Company has increased to 38,821 representing 0.052 per cent. of the issued ordinary share capital of the Company.



Sean Wyndham-Quin purchased 2,725 shares of 10p nominal value ('Ordinary Shares') in the Company at a price of 367p per share, representing 0.004 per cent. of the issued ordinary share capital of the Group. Following this transaction, Sean Wyndham-Quin's holding in the Company has increased to 13,993 representing 0.019 per cent. of the issued ordinary share capital of the Company.

[rivaldo] 18/10/2019 10:49

Given the encouraging year end update, hopefully we'll see a run up in the price into the results on 26th November.

Consensus forecasts are now:

last year : 38.45p EPS, 11p dividend
this year : 41.30p EPS, 11.85p dividend

Given that RNWH's net debt is now so small, any acquisition would hopefully be funded primarily from existing resources rather than equity and so be highly earnings-enhancing.

[thecroots] 17/10/2019 18:32

Admittedly, its falling on very low volumes but still. Its frustrating that it has dropped this low.

Hopefully not a placing but if they get an acquisition for a decent price them I'm happy.

[harrogate] 17/10/2019 18:12

Certainly disappointing for sure. Did think that even with the current uncertainty that hitting numbers and getting all the frameworks renewed would set us up for at least £4. I wonder if there is a deal in the offing that will need a fundraising again? I sold a few when I was worried that CP6 might cause a delay and can now buy them back lower but not rushing as seeming little support on the price. Now lower than 3 years ago I think.

[wad collector] 15/10/2019 14:09

That's a new 6 month low today ; against the trend for most of my UK holdings this last month. Is this about rail uncertainties?

[cwa1] 09/10/2019 15:01

Nothing more than a little bit of scuttlebutt-but QTS have been very busy near me for the past month or so on the railway line, they've been out every Sunday as well. There's dedication to a large pay cheque for you ;-)

[rivaldo] 09/10/2019 14:24

Network Rail have just published their annual spend table split by contractor to Oct'19.

It's encouraging to see QTS come in as a new entry to the top 20 at number 16, with £87.5m. And Amco are at number 6, with a weighty £206.3m: