Sharpedge7
09 May 2018
Re: For most of the last year the share price has been north of 410. Think the discount on placing was far too big. Not happy at all with the placing price although agree the acq itself looks good.
gretel
09 May 2018
"Materially earnings-enhancing" acquisition This looks a very good acquisition - particularly the "materially earnings-enhancing" part.The acquisition of another company involved in non-discretionary expenditure from Network Rail is another big plus for me.Numis today say Buy, with forecast 40p EPS for 2019 ( the first full year), up from 36p, and are saying they expect a net cash position by end 19 even with this deal.Which makes RNWH pretty cheap at the current price.At first I thought the placing price was pretty poor. However, on reflection, the share price was around 380p-385p only a month ago. Given the size of this deal, it's likely that it's taken a while to complete. I suspect that the placing price was agreed when the deal was first mooted, when 355p wouldn't have looked unreasonable. The subsequent rise in April has left the places well placed, but Numis rather red-faced.The acquisition does look very good. Sometimes there are situations when the share price rises nicely post-placing as demand comes in. Already the share price has held up pretty well. This may well be one of those occasions.
Guitarsolo
09 May 2018
Re: disenfranchised Quite so Tejo. I forgot to add in my note that directors had participated in the placing at a nice discount. They didn't buy many admittedly. Guitarsolo - considering sending a snotty note to the board and perhaps a hard stare.
tejo
09 May 2018
disenfranchised Friends and directors get to buy shares at 355p in the placing , far below the 413p the day before. Christmas came early for them but the rest of us --- excluded.
Guitarsolo
09 May 2018
Re: quite a gamble on the rail market... Quite so!Still, £80m for a company with estimated net profits of £9.2m (x8.7 net earnings) is probably not too bad and QTS has very good profit margins and cash generation by the looks of it. My guess is that RNWH thought if they didn't grab QTS now someone else would and they would miss the chance to grow. Hence, the gamble to spend £80m now raised through debt and a placing. I don't like debt much but it looks affordable. But.....I do get the hump with private investors being completely ignored when it comes to placings. I appreciate that it is cheaper for Numis just to find a few large investors but why do they get the chance to buy at a 20% discount and not me - a loyal investor for many years? [BTW - the bumpf says it is a 14% discount to the closing price of 413p on 8th May - but that was conveniently the day of a fall from 430p+). Guitarsolo
dazedandconfused
09 May 2018
quite a gamble on the rail market... and a new tranche of debt, but this could move Renew into different territory (geographical AND financial - bye bye, AIM?)
gretel
08 May 2018
£billions on nuclear decommissioning Very interesting article in today's Times re decommissioning being accelerated at Sellafield - good news for RNWH's Shepley, with £billions to be spent:[link] Extracts: "Reprocessing is now winding down as the last of the fuel from the Sixties Magnox reactors is dealt with and it no longer makes commercial sense to keep processing fuel from the Seventies and Eighties AGR reactors (whether it was ever a good idea is a moot point — Britain has yet to find a use for the plutonium stockpile). From 2021 the focus will shift solely to decommissioning, which on current forecasts will take at least another century and cost £90 billion." "It took 15 years and £1.5 billion of “refurbishment” to get to the point where decommissioning could begin. Now though, aided by technology, things are picking up." "David Peattie, chief executive of the NDA, says it now has the best understanding it has ever had of what lies in Sellafield’s legacy facilities. As such, the costs should not “be jumping up by the big leaps” seen in recent years, from £67.5 billion in 2013 to £89.6 billion today. But he makes no promises of cutting the total: “That would not be wise.”"With clean-up due to last until 2120, the debate over operations at Sellafield is likely to outlive us all."
gretel
30 Apr 2018
Tipped on i.i.i today RNWH are featured today as one of 5 companies in the FTSE AIM UK 50 "which are growing and throwing off cash but are on much lower multiples":[link] (RNWH)Engineering services provider Renew (RNWH) recently reassured investors that trading is in line with expectations, and this led to a recovery in the share price, which had slumped earlier this year.Management did admit that the public sector has been slow in paying so work in progress is higher. It appears that this relates to the rail business. This led Numis to halve its net cash prediction to £7 million at the end of September 2018. The following year's net cash forecast has been reduced by a similar amount to £17 million. This still shows the cash generation of the business.The focus on building up a wide-ranging engineering services business, including rail, nuclear, telecons and water sectors, has helped Renew to construct a good growth track record. Not all acquisitions have gone to plan, though. Renew has got rid of the remaining operations of Forefront Group. Renew had closed the low pressure, small diameter gas pipe replacement business the medium pressure activities have been sold.The engineering order book has edged up to £433 million, but there was a decline in the specialist building order book. The building business is low margin and no longer a large part of the business. A forecast full year profit of £26.7 million means that the shares are trading on less than 13 times prospective earnings and the yield is 2.2%.Renew has a good track record. The strong balance sheet and growth potential in engineering services make the shares attractive."
gretel
20 Apr 2018
The IC say Buy today The IC have just today published their annual review of the AIM 100, their guide to the junior market.RNWH are a Buy:[link] "81. RenewEngineering services has long been the driving force behind improvements at Renew (RNWH). The group has seen its sales and order book grow consistently in the division in recent years, boosted further by efforts to increase the quality of earnings. As a result, adjusted operating profit was up more than 16 per cent at the last update. The group’s latest trading update, released in April, continued this theme, with management expecting to report an increased forward order book at the half year. Growth in engineering services came predominantly from the infrastructure and environmental sectors.The group reports its results for the six months to March 2018 in May, and investors will be hoping for news that will push the shares up to where they were at the start of the year. The share price fell 19 per cent at the end of January as the group released its pre-annual meeting trading statement, which warned that some public sector customers were paying more slowly than usual, and announced the retirement of chairman Roy Harrison. The share price continued to fall until management announced the disposal of Forefront in early February. The sale of that business marked the group’s willingness to cut its losses. It had originally intended Forefront to exit its lossmaking low-pressure small-diameter gas pipe replacement activities, but when by the fifth month of the year the remaining business had shown no signs of improving financial performance, management sold it for a minimal price and took a £9m write-down on its balance sheet.Looking ahead, the question to answer will be how far the group’s engineering division can grow. It carries a good mix of work across energy, environmental, specialist building and infrastructure projects. This diversification may come in useful in coming years as investment in water infrastructure – in which the group does a lot of work – will likely wind down as the AMP cycle reaches its end and water companies prepare to submit their business plans for the next period. Investors should look for further increases in the order book, whether the group looks likely to slip from its year-end net cash target and whether any progress is being made on margins.At 383p, shares in Renew now trade at 11 times forecast earnings, well below where they have been trading in recent times. With the disposal of Forefront the group is well positioned to improve its margins and deliver further growth. Buy."
gretel
16 Apr 2018
Bouncing, and lots of news Good to see Seymour Civil being shortlisted for several awards, but I like these comments in particular:[link] added: "The past 12 months have been fantastic for Seymour Civil Engineering. We have started work on a number of really exciting, wide ranging projects across a number of industries for public and private clients located right across the North East, further cementing our position as a leading independent civil engineering firm in the region."Over the past 12 months, Seymour has won a number of other prestigious awards in recognition of its hard work within the trade. Last year Seymour won four awards at the North East Civil Engineering Contractors Association (CECA) awards."And AMCO seem to be pretty busy - 3 news releases in the last few days:[link] Partnership Delivers Fantastic Results!10th April 2018Collaborating effectively with Principal Contractor, CPL, AMCO-GIFFEN’s Scotland team are delighted to report exceptional progress with critical elements of Livingston South Railway Station’s reconstruction, undertaken during a 10 day line closure over Easter. Read moreCowley Bridge Junction Western Flood Resilience Project09th April 2018AMCO-GIFFEN are pleased to announce that our works on Network Rail’s Cowley Bridge Junction Western Flood Resilience project have kicked off successfully! Read more02nd April 2018As the first system installation on a 100mph double track line, AMCO-GIFFEN has been working in close collaboration with Network Rail on the Level Crossing Risk Reduction project at Blackmill Lane User Worked Crossing! Read more"
gretel
06 Apr 2018
RNS: Octopus Investments go above 18% Octopus Investments continue to steadily buy more.In November they disclosed they had 17.01%, or 10.65m shares. Now they've crossed above 18% with 11.29m shares, so they've bought another 650,000 shares or so:[link]
gretel
03 Apr 2018
Re: Good trading update today Nice review just out - quite long, so here's a couple of extracts:[link] this AIM growth stock help you become an ISA millionaire?Rupert Hargreaves | Tuesday, 3rd April, 2018Renew Holdings (LSE: RNWH) is, without a doubt, one of the AIM market’s best-performing stocks. Over the past two decades, this AIM growth champion has delivered a total return for investors of more than 3,600%, excluding dividends — that works out at around 22% per annum according to my calculations.Renew has carved out a niche for itself delivering essential infrastructure maintenance tasks for regulated markets within the UK. As well as organic growth, the company has grown through acquisitions. For example, last November it acquired Giffen, a specialist mechanical, electrical and power services provider in the rail market.And despite the headwinds buffeting the broader UK construction and engineering industry, it seems Renew’s specialist focus and reputation is helping the company stay ahead of its peers..... ......Cash-richThe company is also benefitting from the fact that it has a small, positive net cash balance, although due to the timing of cash flows, management expects to report a “modest” net debt balance for the period ending 31 March. Still, unlike some of its peers in the construction and engineering sector, Renew is cash-rich, and conservative administration of the business has allowed it to maintain a healthy balance sheet while expanding through acquisitions.Moreover, robust cash generation has allowed the company to triple its dividend distribution to investors over the past six years. Today, shares in Renew support a dividend yield of 2.6%, and the payout is covered 3.5 times by earnings per share. As earnings continue to rise, I believe the company’s dividend will head in the same direction.So overall, as the next generation of management steps up, and the group builds on its existing strengths, organically and via acquisitions, I believe Renew will continue to produce market-beating returns for investors."
gretel
03 Apr 2018
Good trading update today Yet again RNWH produce a good trading update, with:- "strong" Group performance- trading nicely in line with expectations- an increased order book due to higher margin Engineering Services growth- good cash flows[link] RNWH's continued consistency and reliability, the share price really should be back up to 450p and perhaps nearer analyst price targets of 480p or so.
Dizzy1815
28 Mar 2018
Price drop Can anyone shed any light on the big drop today? I looked to buy at one stage, and all the trades were sells. Looks like bargain time.
gretel
02 Mar 2018
Moving up today Current weather conditions will mean lots of repair and renewal and maintenance work on the rail networks.
