Renew Share Discussion Threads

[mattboxy] 04/1/2023 17:16

Market likes it too!

[rivaldo] 04/1/2023 10:31

RNWH's Annual Report is well worth a read for the Strategic Report at the front which isn't on RNS. The impressive opportunities for RNWH are spelt out in detail:

- £51 billion spend in Water via AMP7 into 2025. Now we're in the latter part of the cycle, regulatory expenditure should accelerate nicely
- £30 billion spend in Wireless telecoms upgrades for 5G etc
- £53 billion spend in Rail via CP6 into 2024, including rail electrification and increased focus on renewal and maintenance, which are RNWH's strengths
- £124 billion Nuclear decommissioning spend, with 75% allocated to Sellafield where RNWH are strongly represented
- £24 billion spend on Roads via RIS2
- almost £1 billion on Electric vehicle charging
- £5.2 billion on Flood and coastal protection through the next six years
- £20 billion on UK Electricity/Power networks for transition to renewables
- 40 UK airports requiring increased renewal and maintenance expenditure (new area for RNWH?)

[rivaldo] 30/12/2022 11:13

RNWH are one of Andrew Hore of i.i.i's AIM share tips for 2023, just published this morning....



"Renew Holdings RNWH generates most of its revenues from providing maintenance and other services to utilities and infrastructure sectors. This is a cash-generative business and last year’s trading was ahead of expectations.

Renew provides engineering services for markets including energy, nuclear, water, environmental, telecoms, rail, road and other infrastructure. Much of the business is based on long-term framework contracts and ongoing maintenance spending, rather than one-off capital projects. The company still has a construction business, which is involved in major structural engineering works for upmarket residential properties in London and the Home Counties, but it is a reducing percentage of the business – less than 3% of operating profit.

The order book is worth £775 million, including £717 million for the engineering services division. The long-term contracts make it easier to manage rising costs and margins are improving.

Organic growth has been supplemented by acquisitions. There was net cash of £20.2 million at the end of September 2022 and £15.6 million of that cash is being spent on Enisca, which provides services in the water sector. This should be immediately earnings enhancing.

This deal will help pre-tax profit to improve from £58.2 million to £61.5 million in the year to September 2022. Even after paying for Enisca, net cash could be £29 million by September 2022. There could be further acquisitions, though.

The shares are trading on 11 times 2022-23 prospective earnings. The forecast yield is 2.6%. The rating is modest for such a cash generative business with limited downside. Buy."

[rivaldo] 29/12/2022 09:50

Both AmcoGiffen and QTS are working on this £117m rail track protection and electrification project which runs through to spring 2024:

[wfcreserves] 23/12/2022 15:22

I think it was virtually bust in 1994 and needed the consolidation and rights issue to keep going added to the disposal of the most profitable housebuilding unit along with the Lovell name to Morgan Sindall where has been doing well.

[wad collector] 23/12/2022 14:09

It's one of the very few I held that almost went bust then eventually made me money.
Curiously I see the Y J Lovell name that disappeared in 1995 was reincarnated in 2015 by a court order, presumably by an old litigant , and was finally laid to rest in March this year at Companies House.

[wfcreserves] 23/12/2022 12:33

I like Wadcollector bought my first trade 30 years ago too. As an even more naive investor at the time caught the proverbial falling knife and kept adding as the price fell. It's been a rollercoaster ride since but when the share price rose to £8.40 it made me a Renew millionaire for what it's worth these days.

Would be nice to see it achieve those levels again in the coming year.

Regards to Rivaldo for keeping us apprised of the Renew news and seasons greetings to all holders.

[rivaldo] 23/12/2022 12:14

Happy Xmas to you too :o))

It's rather commonplace in my experience. There are loads of companies - particularly VCTs and investment funds - who I find issue RNSs at 7.00 am saying that a new fact sheet or document is available, and actually it becomes available digitally an hour or two later.

Plus I can't remember the last time we received any post before 8.00 am! As zangdook says, I suspect there really isn't any disadvantage to anyone except the few who actually get a decent postal service these days.

[miss womble] 23/12/2022 11:58

Its rather disgraceful that a company issues a RNS saying that a document is available when it is'nt

[zangdook] 22/12/2022 10:37

It is now, it wasn't when they said it was. It's supposed to be made available before the market opens so the people who got it in the mail don't have an advantage, but a lot of companies think all they have to do is put out an RNS saying it's there, and don't bother posting it until later in the day.

Now, fair enough, postal deliveries are so bad these days no-one got it on time, but I'm allergic to misleading RNSs which make me go searching for documents which aren't there.

[rivaldo] 22/12/2022 09:56

The Annual Report is here:

[zangdook] 22/12/2022 07:40

A copy of the Annual Report & Accounts and Notice of Annual General Meeting is available on the Company's website at www.renewholdings.com

No it's not. 😡 Do they really think no-one gets up at 7 to check the news?

[mattboxy] 21/12/2022 16:47

Nice tick up today

[rivaldo] 09/12/2022 11:56

Cheers grahamburn, excellent spot. The tone is indeed extremely positive, and it seems that all divisions are now performing and have very good prospects, and as Harrogate says there would appear to be room for further and material-sized acquisitions.

Here's a link:



It's interesting to see Walter Lilly described as non-core, although the presentation commentary is effusive, describing the very healthy order books. Perhaps this would be a good time to sell it to supplement the already healthy cash flows?

Lilly's news page backs up the good news message with news of various contracts which I don't think have been posted before:

[wad collector] 09/12/2022 08:39

Depends what his salary is ; holding 47,700 shares is the minimum if he is on £333K salary. According to the 2021 accounts his salary was £221k. But either way a single director transaction seldom means much , if we know nothing of his circumstances. Buying a a Ferrari for Xmas?

[harrogate] 09/12/2022 07:42

The recording is a good watch. The sense I get is that they are looking at a decent sized deal in the near future. Increased banking facility, fairly miserly increase in dividend, much improved free cash flow with no pension payments etc all suggest they can. That director sale certainly put a stop to momentum beyond 7 pounds. Quite large and unusual to sell all you can.

[harrogate] 07/12/2022 15:56

Graham. Thanks for pointing that out. I had missed it when I found the slides. I agree and I always look at company websites and also these days the LinkedIn page is where the most up todate general info is. I still think it is poor that no opportunities for a decent question and answer session have been provided. I am sure the institutions they met on the roadshow had lots of opportunities for such.

[grahamburn] 07/12/2022 14:29

There is a 30 minute presentation by the CEO and CFO on their website, so not sure why other posters are not seeking it out. Not much new in it over and above what was in the statement - and no Q & A's - but still useful to hear their tone and see how the present themselves and the company.

OK it wasn't flagged up in the statement but IMO investors should regularly look at a company's website (just to keep up with its activities etc).

[harrogate] 07/12/2022 13:10

Not by all companies though and many decent non promotional managements find time a couple of times a year to do presentations and take questions from PIs through things like IMC. It is not hard at all and not to do so, having done it last year seems perverse to me.

[wfcreserves] 07/12/2022 11:46

Unfortunately the small shareholder is treated like an inconvenience in this day and age. Even those with more shares in the company than the directors.

[harrogate] 07/12/2022 07:36

I see the results slide pack is on the website. It is extremely disappointing that they did not do a presentation to investors this year. They did one last year and this is a backward step in terms of communication with investors from a Company who are already among the least communicative. Poor form really in this day and age when everyone cried out for more involvement from shareholders

[wad collector] 05/12/2022 22:36

IC article on last weeks results means they have upgraded from HOLD in May (711P) to BUY at 666p, thinks they have negotiated the employees pay rises well.

[rivaldo] 05/12/2022 14:01

Numis say Buy with a 900p target. They forecast 60.3p EPS this year, with an 18p dividend.

They also see a £27.6m cash pile (pre-IFRS16) at the end of this year.

Extracts:

"Strong FY22 results and acquisition of Enisca

Renew's FY22 results were ahead of expectation even after a positive pre-close update, and in our view reflect a business and management team that is continuing to deliver even in a toughening macro backdrop.Today's bolt-on acquisition of Enisca further enhances the Group's capabilities in Water, and serves to offer another demonstration of Renew's value-compounding business model. With the shares trading on c.11x FY23E PE and c.8x EV/EBITA, we remain positive."

"Forecasts: Reflecting the stronger than expected FY22 performance and the Enisca acquisition, we increase our FY23E EBITA forecast by 8% to £62.0m, and our FY23E EPS forecast by 9% to 60.3p. We upgrade FY24E EBITA and EPS by 6%. We forecast an FY22-25E EBITA CAGR of c.4%, noting the Group's strong track record of positive earnings momentum both organically and from M&A and a FY16-22 EBITA CAGR of 18%.

•Valuation: The shares trade on a FY23E PE of c.11x and EqFCF yield of c.7%. Given the Group's track record of compounding organic growth and accretive M&A, its strong balance sheet, and high ROIC, we believe the shares merit a premium rating relative to sector peers."