Renew Share Discussion Threads

[rivaldo] 30/11/2023 21:23

Indeed - a 300,607 share trade through at 842p followed by a number of other trades at 842p or thereabouts, including an 84k and a 37k.

Should make for an interesting opening tomorrow!

[wad collector] 30/11/2023 17:23

Ooh ,300k bought at the close @ 842p. That makes the chart look even better!

[rivaldo] 30/11/2023 07:24

RNWH announced in this week's results they'd won South West Water as a new client.

Pennon Group, who own South West Water, have just announced they're to spend an additional £100m on improving water infrastructure in the next two years, making a total of £850m.....



And there's a further £2.8 billion to be spent from 2025-2030.

Also, RNWH's J Browne have embarked on a 7-month project water mains contract for Affinity Water around Stansted:

[rivaldo] 29/11/2023 13:23

Up nicely again. It seems the market may rightly and at last be re-rating RNWH nearer to Berenberg's new 1000p target.

Once again I'll reiterate that broker forecasts for this company are ALWAYS conservative and are usually beaten - as they have just been yet again. If necessary I can dig out my previous posts to prove this once more.

RNWH have either beaten or met forecasts since from memory 2006. This is an outstanding record. Given the outstanding prospects and high visibility/security of income a higher multiple than the current one is much deserved.

[wad collector] 29/11/2023 13:03

Yeah don't care if they don't want to talk to me , and not bothered if the profits give me dividends or capital gain.

[rimau1] 29/11/2023 12:48

Harrogate - my post 10080 is still almost entirely a relevant response!Harrogate - as i mentioned yesterday i appreciate your contrarian views as it sense checks my own (and i read your blog sometimes) but you are just repeating yourself here. We have a very subjective stalemate where the bulls expect Renew to beat broker expectations and we value RNWH's defensive inflation protected earnings higher than you do and attach a premium to them. Healthy debate of course! Long term holders also have a decent t dividend yield no? Lack of PI engagement is also a bit fluffy is it really a reason not to buy? Pure guesswork here so forgive me but did they ignore your request for a mgt call perhaps and you are a bit miffed?

[harrogate] 29/11/2023 08:37

A very solid set of results and the share price recovery fully deserved. It was disappointing to see the net margin reduced from 6.9% to 6.6% and forecasts don't show it recovering. We now sit at the 5 year average PE of 12 and with Numis showing EPS flat for FY24 at 63.6p EPS due to a higher tax charge, I still don't see what will shift us to a higher rating. The dividend at under 30% of EPS seems miserly and that is not helping. It is to be hoped that this hoarding of the cash is because they have an eye on a significant deal that will give a step change in EPS. With the £80m facility they put in place a year ago they have the firepower for something sizeable. That would put some momentum behind the share price.
I don't know if it really makes a difference but their communication with PIs is shocking. A nice presentation to view on line but almost all companies of this size are doing IMC or similar presentations where we can ask some questions and hear what management have got to say.
A strong hold for sure as almost zero chance of missing their numbers

[rivaldo] 29/11/2023 07:15

The IC say Buy in a new article, these being the main points:

"Renew Holdings (RNWH) chief executive Paul Scott said the 10 percent increase in organic revenue and 18 per cent gain in operating profit delivered during difficult market conditions provided “evidence of the resilience in the [business] model that I’ve talked about for years”

“We’re actually seeing clients talk very confidently about increased focus and spending,”Scott said."

"Renew has increased its headcount by around 10 per cent over the course of the year, as past acquisitions have provided the opportunity to expand into new areas – Scott cites winning South West Water as a client as an example. An operating cash inflow of £55mn meant net cash (excluding leases) increased by £15.5mn to £35.7mn, despite the company paying £14.6mn for the remaining half of the Enisca water business that it did not already own."

"results have been steadily impressive – as witnessed in the doubling of its earnings per share over the past five years."

"Berenberg analysts upgraded their earnings forecasts by 5 per cent for this financial year and 9 per cent for next,citing “confidence in Renew’s ability to deliver through-the-cycle resilience”. With the company also having the firepower to do more deals – it has bought TIS Cumbria, a small nuclear specialist, for £4.9mn since the year-end – other upgrades could follow. We maintain our buy position."

[rivaldo] 28/11/2023 15:58

Lots of reportage on today's excellent results - here's just one:

[mattboxy] 28/11/2023 14:12

Thread title hasn't aged well has it!

[wad collector] 28/11/2023 12:29

Solid as expected, though suspect the price creep in the last month has blunted today's rise. Hard to see much downside. Glad I have too many...

[rivaldo] 28/11/2023 09:44

Berenberg have today raised their target price to 1000p (from 950p) - and the share price is now starting to respond to the terrific results:



Wfcreserves, the Allenbuild situation has been ongoing for some years and is less and less material to a group now making almost £60m PBT. It is what it is.

I prefer to look at the revamped Group as it now is and the very, very positive outlook going forward for many years to come.

[wfcreserves] 28/11/2023 08:06

Another £3m+ reserve against Allenbuild contracts?

[rimau1] 28/11/2023 07:44

Agreed Riv, the tone is more bullish than i can ever recall from a usually overly prudent management team. Happy they have nipped the political risk in the bud too.

[rivaldo] 28/11/2023 07:30

Today's prelims see the 63.5p EPS well ahead of the 60p-61p EPS forecast by Shore Capital and Numis.

They're also ahead of the forecasts for this coming year, so there must surely be upgrades in the works. There's still plenty of share price upside to the prior broker targets of 950p or thereabouts.

Above all, the tone of the outlook is extremely bullish. Every division is performing well, and the prospects in areas like water, flood defence, rail, 5G, highways, nuclear etc are all enormous going forward for years to come.

Plus with a £30m+ and rising cash pile there's the likelihood of firther earnings-enhancing acquisitions, where there's:

"a healthy pipeline of opportunities including complementary bolt-on acquisitions as well as larger, more complex opportunities that will grow our geographical reach and service capability in a similar way to that achieved by our recent strategic acquisitions"

You couldn't have a better outlook than this:

"Outlook - outstanding FY23 gives further confidence in the year ahead"

"To this end, the structural growth drivers in our end markets have never been more attractive and we remain uniquely positioned to seize both organic and acquisitive growth opportunities. Our trading momentum has continued into the new financial year, and we are excited by the significant opportunities across the Group".

[igoe104] 23/11/2023 19:26

Good to see AmcoGiffen involved in this Scottish project.

Contracts awarded for £61.5m East Kilbride rail project

22 November 2023

NETWORK Rail has announced the awarding of £61.5m worth of contracts for the delivery of the East Kilbride enhancement project.

Story Contracting, AmcoGiffen, SPL Powerlines, Siemens, Rail Systems Alliance Scotland, and WSP have secured contracts on the project to deliver 22.4 single track kilometres of electrified railway.

Coming as part of the Scottish Government’s wider plans to decarbonise

[rivaldo] 23/11/2023 14:00

Another important framework contract win, this one for RNWH subsidiary Envolve announced earlier in the week as part of a £3 billion award by South West Water for the next 6 years at minimum....



"The Network Plus Envolve Joint Venture Awarded Strategic Delivery Partner Appointment on South West Water Ltd £3bn AMP8 Engineering Tier 1 Delivery Framework.

Date Posted: 20.11.2023

We are delighted to announce Network Plus Services Limited and Envolve Infrastructure have been awarded the Lot 4 Infrastructure Water and Wastewater AMP8 Framework with South West Water Ltd.

The framework will be awarded via a formal 50:50 JV founded on the collaborative model we have established working closely together on the Bristol Water Network Maintenance Framework since 2019.

The Joint Venture will provide South West Water with a tried and tested delivery model, combining two of the most respected water specialists within the sector. It is on this basis that we have secured the Eastern Super Team element of the Framework covering all of Devon, Bournemouth and Bristol which expands on our strengths and reinforces our commitment to the South West.

The framework will run for an initial 6-year period with a further 5-year extension option potentially taking our partnership through to 2035.

This success is testament to the sector leading collaboration and innovation we have demonstrated since the launch of the current framework with Bristol Water"

"Jamie Prichard, Managing Director for Envolve Infrastructure and the Framework Director for the Joint Venture:

“This award represents a significant success for Envolve Infrastructure and acknowledges the success of our proven collaboration with Network Plus. We will jointly bring our sector leading performance, and the benefit of our Intelligent Partnership developed within Bristol Water, into the South West region. I am extremely proud of the Network Plus Envolve JV which will support South West Water on their AMP 8 aspirations”

[wad collector] 21/11/2023 20:53

Prelims out a week today ; I don't think they are going to disappoint us. £8 again soon?

[rivaldo] 21/11/2023 09:10

Shepley Engineers are working with Berkeley Group and National Grid on a large scheme to transform UK’s biggest Victorian gasworks cluster into a 2,100-home neighbourhood:

[rivaldo] 17/11/2023 09:42

Posted yesterday by Clarke Telecom - they installed "a cutting-edge private 5G network" at the Satellite Applications Catapult. Likely one of many:



"Exciting News! The Satellite Applications Catapult (SA Catapult) is propelling innovation with the help of Clarke Telecom. 🛰️

In 2011, the UK government introduced Catapults to bridge the gap between research and industry, boosting competitiveness and productivity. SA Catapult is one of nine, focused on satellite-based products and space tech.

Recently, SA Catapult partnered with Clarke Telecom to deploy a cutting-edge private 5G network at their Buckinghamshire facilities. Clarke's expertise was pivotal in expanding the existing 5G network, benefitting companies at Westcott Venture Park.

Pano Mystridis, 5G Network Software Engineer, praised Clarke's professionalism and technical prowess, emphasizing their role in the project's success. This collaboration leveraged the latest Open RAN technology for a seamless installation.
Private 5G networks are revolutionizing industries by offering unmatched flexibility, security, and performance. Clarke Telecom's extensive experience positions them as a leader in this field.

About Clarke Telecom: With over 20 years of experience in cellular infrastructure, Clarke Telecom is your go-to partner for complex private 5G projects. From initial analysis to construction and commissioning, we've got your private cellular network covered."

[rivaldo] 15/11/2023 08:13

Nice chart breakout now, with buying at the full 794p offer already this morning.

[rivaldo] 10/11/2023 10:34

Clarke Telecom's LinkedIn account has suddenly burst into life, with news of its electric vehicle subsidiary, Clarke EV, having completed a substation project for Volvo for EV infrastructure in Perth:



And also working "with BT Wholesale and their customer VMO2 to successfully deploy the latest L26 small cell technology in Brighton, bringing a significant boost to mobile connectivity":



In addition, RNWH said in their last results:

"Renew is focused on leveraging opportunities in the electricity transmission and distribution market. This is expected to grow as a consequence of the changing energy generation mix where we note that Ofgem has announced more than GBP20bn(16) of initial funding to strengthen the transition to low carbon technologies"

I note that National Grid announced yesterday as follows:



"National Grid to spend up to £19bn to ‘rewire’ Britain for net zero

Networks of new cables needed to power shift to heat pumps and electric cars
By Jonathan Leake
9 November 2023 • 6:04pm

National Grid is to spend up to £19bn on new pylons and transmission systems across the countryside as it “rewires the nation” for the net zero era, the company has said..."

[rivaldo] 09/11/2023 09:06

The £200m framework contract win has now been reported on J Browne's own web site:

[wad collector] 09/11/2023 08:42

Sold a few that I picked up cheap a month ago. 7% will do me as I still have too many for a sensible portfolio.

[wad collector] 08/11/2023 12:58

Ooh the share price liked that news today, heading towards an 18 month high after the doldrums of a year ago.