Renew Share Discussion Threads

[wad collector] 20/8/2021 18:33

Some rather volatile trades in the last hour today , jumping around 720- 760 on the buys.
Tipped in IC again today in an article on how to profit from the big infrastructure spend.

[wind dancer] 18/8/2021 20:59

Riv
Good men in David Lodge and Phil Kirby gave us ( VHE ) the opportunity to up our game. Enabling in turn Shepley, then the group and the our current CEO to reap their current rewards.
Hope they know their history.

[johnrxx99] 18/8/2021 10:12

Reminds me of the heady days at uni, 50 years ago :-)

[rivaldo] 18/8/2021 08:14

Nice to see buying this morning at over 800p.....

Evidence of the long-term nature of much of RNWH's work from this news:



"13/08/2021

VHE celebrate 25 years working with National Grid Property Holdings

Since VHE Construction were first appointed in 1996 on the Project Atlantis Framework for British Gas we have been involved in the reclamation of over 500 sites across the length and breadth of the England, Scotland and Wales.

The framework is now known as the Provision of Land Regeneration Contracting Services for National Grid Property Holdings Ltd and VHE are proud to remain engaged with the client on projects across UK."

[rivaldo] 12/8/2021 07:42

The £55m Medical HQ project wasn't RNS'd, presumably because spread over the build period it didn't reach the annual materiality tests. I'd assume that's also the case for these new DEFRA contract wins.

[harrogate] 11/8/2021 17:22

That is true. Surely these need RNSing if true?

[rivaldo] 11/8/2021 16:08

Remember that Walter Lilly won the £55m headquarters project for the London Institute of Medical Sciences only two years ago, so these contracts are certainly within their capabilities spread over time assuming they're the correct numbers.

[harrogate] 11/8/2021 15:51

Walter Lilly has an annual turnover of around £40m so they look wrong to me

[rivaldo] 11/8/2021 15:28

The major contract is for a very specific amount - £58,638,626. Similarly for the second largest of £31,924,926, and the third largest of £20,722,441 etc etc.

Which suggests to me the amounts are correct. But given this is work from a government department errors wouldn't surprise me :o))

[harrogate] 11/8/2021 15:03

Hi there. Just looking at the detail behind each award I don't think those numbers should be millions. Bit odd though

[rivaldo] 11/8/2021 14:56

Walter Lilly appear to have won yesterday and today a combined £147m of construction and upgrade contracts from DEFRA....



Not bad at all! They all appear to be separate from each other (happy to be corrected:

"DEFRA Network Etendering Portal

Refurbishment of B329/330 award: Walter Lilly £58.6M
B358 Cattle Handling System award: Walter Lilly £31.9M
B265 Functional Safety Alignment award: Walter Lilly £20.7M
SSB to B17 award: Walter Lilly £13.3M
MSC Phase 1 award: Walter Lilly £12.5M"

[rivaldo] 10/8/2021 09:42

July's issue of SCSW is now out, so it should be OK to copy the Buy recommendation for RNWH from the prior issue in June FYI:

"Renew Holdings
Epic code: RNWH

(Sharewatch) Renew has reported an excellent H1 to end March (against comparatives that were pre-Covid), with sales up 17% to £366m, pretax profit up 19% to £18.1m and eps up 14% at 22.9p. Adjusted operating profit margin was 6% (down from 6.4%) mainly due to a mix change - with a higher proportion of speciality building work, which is only 2% margin.

Helped by six months from Carnell (versus three) Engineering Services grew sales 12% to £327m (+6.6% organic) with operating profit up from £20.5m to £22m. This was driven pretty much singlehandedly by a strong period in Rail.

Divisional work tends to be underpinned by frameworks but H1 saw weakness in Nuclear where all non essential work was stopped during the pandemic but this has since resumed to 85% of pre-pandemic levels. Water also saw a bit of a hiatus in work as the sector transitions from AMP6 to AMP7. But Renew is well versed to these cyclical changes.

CEO Paul Scott tells me he expects growth in the middle part of the five-year cycle to resume and is now working with nine of the 26 UK water companies. Post period end it bought J Browne, a water focussed engineering services business, which works for Thames, South Eastern and South Water. Given that Thames has such complexity, it was a region that would have been hard to enter organically. Net debt post the deal is £16m.

Trading in the first few weeks of H2 has been strong aided by the record period-end order book (£665m in engineering services) and margins look set to recover as H2 will be lapping weak covid impacted months. Peel Hunt forecasts £44.5m pretax profit/eps 45.6p. Although a ten-bagger on the first write up, the shares still look a Buy."

[mayers] 06/8/2021 14:05

Thank you doubleorquits,like yourself but perhaps for not so long I have been in, from about 2013. As you say RNWH comes across as a fine well organised diverse company quite apart from any IHT implications. I hope however that the exemption will be retained despite the current financial pressures. Best wishes.

[mayers] 06/8/2021 14:05

Thank you doubleorquits,like yourself but perhaps for not so long I have been in, from about 2013. As you say RNWH comes across as a fine well organised diverse company quite apart from any IHT implications. I hope however that the exemption will be retained despite the current financial pressures. Best wishes.

[doubleorquits] 06/8/2021 13:01

Hi Mayers,

Like CWA1, as an executor of a will I have used RNWH amongst a few other AIM shares to eliminate an IHT bill 3 years ago. I presented all the information required on a spreadsheet with transactions listed and copies of contracts. I had no feedback except a tax free experience so I can only assume that it was successful! There was no evidence that any of the shares did not qualify but then that is the level of the lack of information and transparency I have grown to expect from these sorts of things. This perk inevitably helps make RNWH attractive as an investment but I think the fundamentals and reliability of the results from the company YoY are a much greater attraction and for me, at least, far outweigh everything (been holding a long, long time myself as well!)

[mayers] 06/8/2021 12:17

wadcollector

Please take a look at Sponsored Financial Content on this site. I understand there was alsoreference to AIM IHT exemption in yesterday's FT but cannot confirm this. Thank you to those who have given their positive experience of the usage including yourself. The possible impact of its withdrawal on RNWH has already been mentioned.

[wfcreserves] 06/8/2021 11:12

If the IHT exemption was removed would it be beneficial (or not) to move from AIM onto the main market?

[graham86] 06/8/2021 09:16

if bpr removed from aim.what price farmland then.

[wad collector] 06/8/2021 08:41

I've been thinking it is time to topslice for the last 2 yrs!
It is a criticism of PIs by professionals that we don't run our winners long enough and we don't sell our losers soon enough.
Mayers , not sure what you are referring to ; like almost all AIM stocks , these have been IHT exempt under the BPR rules for a few yrs now if you have held them for 2+ yrs. There has been mumbling in the Financial Press about removing the relief for a while now but nothing concrete . That would certainly devalue them. I have just been executing an estate with assets that are almost entirely AIM shares, they have admirably reduced the IHT due , though has risked the AIM portfolio volatility .

[wad collector] 06/8/2021 08:29

I've been thinking it is time to topslice for the last 2 yrs!
It is a criticism of PIs by professionals that we don't run our winners long enough and we don't sell our losers soon enough.
Mayers , not sure what you are referring to ; like almost all AIM stocks , these have been IHT exempt under the BPR rules for a few yrs now if you have held them for 2+ yrs. There has been mumbling in the Financial Press about removing the relief for a while now but nothing concrete . That would certainly devalue them. I have just been executing an estate with assets that are almost entirely AIM shares, they have admirably reduced the IHT due , though has risked the AIM portfolio volatility .

[dr biotech] 05/8/2021 20:57

Me too. In the past I’ve never let my winners run long enough, and I’m already thinking that I should have cut some of my losers rather than taking partial profits here.

Perhaps I should just keep them all, not as if I don’t have enough cash already.

[3800] 05/8/2021 20:38

You may be pleased you sold some at £7 by year end wad collector, With my porfolio touching a new high I am beginning to get vertigo over some of my stocks.

[mayers] 05/8/2021 17:53

I wonder if recent talk of AIM stock exemption from IHT may be of some relevance.

[wad collector] 05/8/2021 17:10

And almost £8 at the close. I felt pleased with myself when I unloaded some in July for £7! A pound a month will take us to £11 by the year end ....