gretel
07 Aug 2016
RNWH to benefit from Parliament move? The Times reported yesterday that MPs are to move out of Westminster to Richmond House to enable the complete overhaul of Westminster/Parliament.This is estimated at costing around £4billion....RNWH's Allenbuild has of course already been in situ at Westminster for 10 years running refurbishment and renovation projects ranging from roof renovations to security system and kitchen projects:[link] story has started to be picked up elsewhere (the Times is subscription-only). This would be a huge win for RNWH:[link]
gretel
07 Aug 2016
Re: Major new project for RNWH's Amco? Not for any of us to know for certain, but I very much doubt that one piece of repair work can be held responsible for the collapse of a Victorian bridge which has been known to be crumbling for some time!It seems to me more likely that this could be a mini-Dawlish emergency situation, giving a nice boost to RNWH's interims to 30/9 and likely to H2 as well.
dazedandconfused
03 Aug 2016
Re: Major new project for RNWH's Amco? Unless their work (drilling happened just before collapse, reported in BBC extract) is deemed contributory to the problem?!? At least, no Didcot...
gretel
02 Aug 2016
Major new project for RNWH's Amco? On the news this morning - potentially big job for Amco working for Network Rail repairing this collapsed bridge which has caused "rail chaos" to trains between the East Midlands and London:[link]
gretel
12 Jul 2016
Octopus Investments buying more RNWH RNS tonight - Octopus are up to 15.16%, or 9.33m shares:[link]
gretel
07 Jul 2016
Almost on a single-figure P/E now RNWH have already achieved 13.31p EPS in H1, and H2 revenues were already secured at the H1 close on top of the strong order books.In 3 months' time RNWH will almost be on a single-figure current year P/E given forecasts of 30.81p EPS.And it's likely that we'll see a large-ish acquisition some time soon given the strength of the Balance Sheet (net cash).
gretel
28 Jun 2016
Time for a bounce Time for a big bounce here imo.Since RNWH are concentrated on essential repair and maintenance budgets as a whole, Brexit is basically irrelevant AFAICS except for perhaps a small effect on the non-core Walter Lily (and I'd have thought most of their high-end clients are pretty immune to whether the UK remains or leaves).
gretel
07 Jun 2016
New wins for RNWH's Walter Lilly Looked at Walter Lilly's news page for the first time, and there's a lot of recent news in the last week - two new large country estate project awards and three new projects in Belgravia:[link]
dazedandconfused
03 Jun 2016
BUY in Telegraph today Again..following up on earlier recommends and noting cash position May lead to further acquisition alongside change of MD.
gretel
03 Jun 2016
Tipped in today's Telegraph [link] Holdings£3.62¼p Questor say BUYEngineering support group Renew Holdings has a growing order book, and rising revenues and profits which have handsomely repaid the faith in our long-term buy tip.The company uses its engineering skills on some particularly nasty projects, such as clearing out the radioactive sludge from waste cooling water ponds at Sellafield. The company was recently awarded a 10-year framework contract for nuclear decommissioning work at Sellafield. These long-term deals provide a steady flow of work and good revenue visibility.Renew reported a 9pc increase in the engineering order book to £416m at the end of March, bringing the total order book to £515m.The company also provides infrastructure support work for Network Rail. Revenue increased 5pc to £265m, and adjusted pre-tax profits were up 9pc to £10.3m in the first-half ended March. The interim dividend was given an 18pc boost to 2.65p.Renew has a track record of strong cash generation which steadily repays long-term finance used to fund expansion. Net debts were £4.2m, down from £14m a year earlier, and the company expects to be in a net cash position by the year end. More deals will clearly be in the offing.The consensus estimates are for full-year, pre-tax profits of £21m, giving 27p in earnings per share.Renew’s chief executive Brian May, who has led the group successfully for 11 years, will be replaced internally by Paul Scott after the September year end.We said the shares looked cheap two years ago (Buy, 289p, September 2014). They have gained 23pc since then and trading on 13 times forecast earnings we think there is more to come. Buy."
gretel
27 May 2016
Hargreave Hale buying more RNWH RNS out - Hargreave Hale continue to buy. They've increased since their last holdings RNS in November from 8.08m shares to the current 8.75m, or 14%:[link]
gretel
26 May 2016
Very positive presentation I attended a presentation from RNWH yesterday. RNWH are in the middle of an extensive period of meeting investors - two weeks of touring the City, the North and Scotland, which is more than they usually due at the interim stage.The current price looks cheap to me. I wouldn't be surprised to see more institutional buying coming in after this series of presentations.Here's a few jottings from the meeting - and the interim presentation can be seen here:[link] - the profit split is normally 47% or 48%/52% for H1/H2. implication, with 13.31p EPS in H1 alone RNWH is extremely well placed to meet - and possibly beat - the two forecasts of 27.5p EPS and 27.2p EPS to 30th September - RNWH are aiming short-term to get operating margins up to 4.5% from H1's 4%. This alone would add another £2.7m to profits based on H1's annualised revenue - the 18% dividend rise in H1 suggests an 8p dividend for the year - RNWH have examined a number of acquisitions. These often take years to come to fruition at the right time and price. More are on the way, but timelines are impossible to predict. The CEO was asked about the problematic telecoms and gas acquisitions, and he replied with optimism about them both, noting that consolidation in telecoms and the slow pace of gas contract awards couldn't be predicted and are being overcome by adapting or stepping up the pace - RNWH pay their supply chain one week AFTER they get paid, with obvious cash flow benefits. The largest customer pays in 28 days, with the majority on 28-40 days. The negative £4.2m working capital movement in H1 should entirely reverse in H2 to be neutral overall - of the £3billion nuclear decommissioning programme to be spent, 90% will be at sites where RNWH work (14 of the 17 NDA sites), and 70% will be at Sellafield, where RNWH have a VERY strong position via Shepley Engineers as the largest contractor with 11 frameworks - RNWH are the sole provider on the £30m Magnox nuclear framework at 10 sites, with potential for later decommissioning work - 3 new nuclear opportunities are being actively developed, including Moorside, which is adjacent to Sellafield, so very favourable for RNWH - Shepley's new appointment to the Courtyards framework at the Palace of Westminster is a biggie imo - at some point Westminster will have to be entirely overhauled, and this will cost £billions - the average contract value for large infrastructure contracts is £300k, so very low risk of material overruns - RNWH had no infrastructure work in Scotland 4 years ago. It displaced the incumbent, and has won £50m of work If anything else occurs to me I'll post it later, but if any other attendees are watching I'm happy to accept corrections!
IOMINVESTCOM
25 May 2016
Renew continues to provide double-digit growth Renew continues to provide double-digit growthRenew Holdings (RNWH) is proving its capabilities by continuing to generate double-digit growth.Numis analyst Howard Seymour retained his ‘add’ recommendation and target price of 390p on the company, which provides engineering support services for UK power stations, water and gas pipeline and rail and telecoms networks. The shares fell 5% to 346.5p yesterday.‘The ongoing ability to generate double-digit organic growth in engineering services as illustrated with the interim results reflects the strength of Renew’s capabilities over and above the attractive characteristics of the group’s key market,’ he said.‘The provides underpinning both to H2 outlook and the longer term targets in terms of organic growth, which the strengthening balance sheet will enable the group to boost this potential with bolt-on purchases into complementary areas of activity.’
JJHBev
24 May 2016
Re: Interim results Agreed Tejo.This is an excellent company in so many respects (and has been a great investment over the past years)BUTthis excellence is reflected in the way the sp has risen - which has been on the back of the stellar performance in the Engineering Division - and in these latest figures we see that Engineering turnover in the past half year has actually fallen rather than grown.In the second half of last year Engineering turnover was £230m (on an opening order book of £382m)In this half year Engineering turnover is £221m on an opening order book of £400m.Rnwh remains a first class operation operating in a great sector to be in, it will soon be debt free and there is the strong potential for additional growth by acquisition. However its sp has been rated based on strong growth in the Engineering Division and that rate of growth is now in question.It is still a very good company and is still very well placed but perhaps the sp could drift until further growth - possibly via acquisition - can be seen?
tejo
24 May 2016
Interim results Agree that the results are good but perhaps not quite as good as needed to support a higher sp. The p/e is still high and the dividend needs to be more generous to make the shares attractive at this level.
