gretel
01 Nov 2016
WHI increase target price to 470p WH Ireland have today upgraded their target price to 470p, and have also increased their EPS forecast for the current year to 31.7p EPS, with a 9p dividend.Re-rating time.
gretel
01 Nov 2016
RNS : new acquisition Good acquisition for £7m from cash, so will undoubtedly enhance earnings to the tune of £0.7m PBT or more, and in RNWH's core area of rail too which is good to see.Plus the chance of cross-selling re London Underground:[link]
gretel
14 Oct 2016
RNWH benefit from infrastructure plans [link] May's infrastructure investment plans could be huge for these stocksTheresa May may not have formally announced plans for a large infrastructure investment push but with the PM evidently less austerity-focused than her predecessor and trade groups lobbying hard, it's looking likely that some sort of infrastructure stimulus package is on the way for the UK.Whether the investment is in railways, highways or power plants, one major beneficiary will be Renew Holdings (LSE: RNWH). Renew owns a variety of subsidiaries that provide engineering and long-term support services for a variety of customers including Network Rail, major utilities and telecoms.While there are plenty of companies out there that would benefit from major infrastructure investments such as construction firms or materials manufacturers, Renew has several characteristics that make it an attractive long-term investment to me.First, by making maintenance services contracts a large part of its business, Renew protects its downside by ensuring long-term revenue visibility throughout the business cycle. This is evident in the order book, which increased 9% year-on-year over the past six months to £515m, roughly equal to full-year 2015 revenue.Second, Renew has a very healthy balance sheet. Net debt at the end of the last reporting period stood at a very low £4.2m and the company expects to have net cash at the end of the year. Having low or no debt to service further protects the company during economic downturns and also gives Renew ammunition for acquisitions.With revenue growing even without a major government-led investment push, operating margins increasing consistently and a healthy balance sheet, Renew is one cyclical on my watch list come the next eventual economic downturn."
gretel
05 Oct 2016
Tipped by Simon Thompson Simon Thompson of the IC has tipped RNWH with a target of 420p - here's a part of the tip.£6m net cash would hopefully open up the possibility of quite a large earnings-enhancing acquisition. And RNWH would certainly not need to issue any equity to do so.Remember that only this week RNWH noted in their trading update that the CEO had "delivered an increase in market capitalisation from £17m to £229m without recourse to equity financing" - they're obviously extremely proud of this and are unlikely to start now!Here's the tip:"The company is scheduled to release its full-year results on Tuesday 22 November 2016, so this is a good time to review its trading prospects. Analysts at Numis Securities and WH Ireland both predict the company will deliver pre-tax profit of at least £21m and EPS north of 27p in the 12 months to end September 2016 to underpin a 14 per cent hike in the dividend to 8p a share. On this basis, the shares are rated on 13.7 times earnings and offer a 2.2 per cent dividend yield. That's a modest rating for a company targeting an operating margin target of 4.5 per cent in the 12 months to end September 2017, implying a 30 basis point improvement on the year just ended.That margin expansion is worth flagging up because the margin gain on £550m of revenue for the 2017 financial year accounts for the majority of the £2.7m operating profit growth that WH Ireland and Numis have factored into their forecasts. So, if Renew increases revenues by 5 per cent as analysts suggest it will, and boosts margins to the 4.5 per cent target, then pre-tax profits and EPS could surge by 14 per cent to £24m and 31.1p, respectively, in the 12 months to end September 2017. The combination of 15 per cent EPS growth and a forward PE ratio below 12 offers an attractive PEG ratio of well below one. A forward dividend yield of 2.5 per cent will appeal to income investors based on the payout per share rising by a further 12 per cent to 9p.Furthermore, with the benefit of a strong seasonal working capital cash inflow in the second half just ended, Renew could have a year-end net cash position of around £6m, reversing a £4.8m net debt position a year earlier, thus increasing the possibility of selective earnings accretive bolt-on acquisitions. Not that the existing business is short of organic growth as a £500m plus order book highlights Renew’s status as a quality, UK business focused on infrastructure (nuclear, rail, water) with robust characteristics."
tejo
04 Oct 2016
Test for new management Renew should be well positioned to take advantage of increased public expenditure and the only serious reservation has to be as to whether the growth momentum can be maintained after the highly successful CEO has retired. At least there is continuity, but there are so many examples of the Midas touch being lost in, these circumstances. A big attraction has been the ability to grow without recourse to increased equity and the trick will be to maintain this discipline when the siren voices of the advisers will be to raise more capital to adventurous growth. I still think the shares are a buy, but a cautious one.
gretel
03 Oct 2016
Positive analyst comment Nice close today.Brief but interesting analyst comment:[link] at Numis said in a note: “While management does not make any comment about outlook, we believe the group will be well-placed for ongoing requirement for non-discretionary work in its key markets this year and could also see some acceleration of work in the rail sector in particular as an area where there seems to be increased focus under the Tories as a pump prime at the time of the Autumn Statement.”They added that Mr Scott is not expected to alter the strategic direction or business model of the group, which has enabled it to grow 13-fold over 11 years without any equity funding."
gretel
03 Oct 2016
Good trading up[date today Excellent news - trading is in line with forecasts, margins are up, plus the group has net cash now, so should be ready for more acquisitions:[link] now in a year with forecasts of 30.8p EPS and a 9p dividend, so the current share price is just too cheap imho given the fundamentals and potential.
aces and eights
27 Sep 2016
short term SP Any ideas on what the projected SP is in the short term? Results are due soon so are we to expect a small rise?
Guitarsolo
26 Sep 2016
Re: AMCO invent prize-winning product Gretel, Thanks for this, and all your other comments and postings about RNWH. This isn't the most active of discussion boards but I for one am grateful for your posts. Guitarsolo - used to have more of these but needed to sell them to raise some money. Sadly, only a modest holding remains! Would love to rebuild.
gretel
26 Sep 2016
AMCO invent prize-winning product Really good PR for RNWH's AMCO Rail:[link] RAIL AWARDS 2016: Innovation of the Year Winner: AMCO Rail - Soot scabbling machine23/09/2016 in RAIL FeaturesThe days of steam engines have left significant coatings of soot covering tunnel brickwork on the railway. Without removing the soot, engineers cannot undertake compliant structural examinations, potentially meaning that defects in the tunnel lining remain hidden. The traditional approach to removing the decades of soot involves the use of water or compressed air coupled with manual scraping, which is ineffective, inefficient and not environmentally friendly. Network Rail East Midlands Infrastructure Projects had a particular problem with soot accumulations in four tunnels and approached AMCO Rail to develop a new solution, which had to be ready in just five months. The scabbling head AMCO designed can be mounted onto an adapted Road Rail Vehicle and uses 15 wire brushes arranged to prevent damage to the brickwork. On its first trial at Meir, Milford, Clay Cross and Bradway tunnels, 10,350m2 of soot has been removed to date in 28 possessions. Using conventional methods, this would have required in the region of 86 possessions and consumed 7,740,000 litres of water. If that achievement wasn't staggering enough, there is the potential for this system to be used for other applications such as the removal of spalling brickwork, calcite lining and poor quality concrete applications. Judges' Comments We were seriously impressed with this invention. It was the most innovative entry this year, with significant benefits already achieved and more to come in the future.
gretel
16 Sep 2016
Re: Hinkley good news for RNWH RNWH's Shepley Engineers and its subsidiary PPS Electrical have just been named two of the three star performers in the health and safety awards from RoSPA – the Royal Society for the Prevention of Accidents.Many of the awards were for safety work at Sellafield, so this should bode well for Shepley in obtaining contracts at Hinkley Point:[link]
gretel
15 Sep 2016
Hinkley good news for RNWH This morning's news regarding the likely go-ahead of Hinckley Point has got the share prices of other nuclear sector suppliers going.RNWH's Shepley should also benefit as major suppliers and installers to the sector:[link] actually highlighted it in their most recent presentation:[link] in New Nuclear at Hinkley, Wylfa and Moorside"
gretel
01 Sep 2016
Moving up before trading update The share price is certainly looking better now, with the full year trading update coming in four weeks or so.It's worth remembering the outlook in the H1 results: "The growth in our order book and good cash generation gives the Board confidence that the Group will deliver strong results for the full financial year"And a new win for RNWH's VHE:[link] wins Barrow business park preparatory works 11 Aug 2016, 11
7 Cumbria County Council has appointed Yorkshire-based environmental contractor VHE Construction to a £1.3m package of works to remediate dockland as it kickstarts a stalled business park development. Barrow Waterfront Business Park was one of the projects cancelled in the comprehensive spending review by the incoming government in 2010. Funding has now been secured from government and Cumbria LEP to resume with a scaled-back business park next to BAE Systems’ submarine yard. The council maintains plans to build a marina at the business park in the future. Remediation and site levelling are due to begin immediately and complete in spring 2017."
gretel
09 Aug 2016
Re: RNWH to benefit from Parliament move... I was right in the first place - the link I posted actually shows that RNWH's Shepley Engineers carried out the Speakers Court refurb works together with Allenbuild:[link] I was on the right track, just on the wrong train (Allenbuild rather than Shepley)!This is a huge £4billion+ project, and Shepley will be favourites to win a decent chunk of work from it:[link]
gretel
07 Aug 2016
Re: RNWH to benefit from Parliament move? Forgot that RNWH disposed of Allenbuild 2 years ago. Doh ))
