dazedandconfused
21 Nov 2017
Re: Results are ahead of expectations you like this firm, don't you Gretel... I mean i'm not complaining, having been in since pre- name change, with some early stock at 40-60p in 2005/6. But i am thinking of taking some profits once again, having done so in March (at 470p), and less sensibly in 2008 at 80p - generally the construction marketplace seems to me to be reaching (if not already past) a cyclical peak, and with Carillion & Interserve showing that there's always someone will underbid for tendered work and come a cropper, Renew's specialist market & success must be attracting competition?
gretel
21 Nov 2017
Re: Results are ahead of expectations Finncap have retained their 586p price target. They go for 34.1p EPS this year and 35.8p EPS next year, with 10.6p and 12.2p dividends respectively.They conclude:"Potential for enhancing bolt-ons. Net cash (excl. finance leases) was £3.9m(2016: £4.8m) after the purchase of Giffen for £7.2m. The board expects tohave no bank debt by 31 March 2018 emphasising the potential for bolt-ons tofurther strengthen the range of services and client base.High ROCE and potential for investment. With ROCE significantly ahead ofthe peer group, a strong balance sheet and the prospect of reinvesting cashflow into enhancing acquisitions, we reiterate our Buy rating and 586p target."And the CP6 news in particular is very important:"Renew has reported a strong set of results with adj. PBT of £25.2m (up+13% on last year) slightly ahead of our forecast £24.9m. Adj. EPS was up+18% on last year and the full-year dividend raised 13%. With marginsrising as targeted, net cash and the order book up 4% supporting a positiveoutlook, we do not anticipate making any major changes to our PBT/EPSforecasts. We reiterate our view that Renew’s strong track record ofdelivering essential services on large, long-term frameworks deserves ahigher rating.Rising operating margins. Engineering Services operating profit grew +17%on last year with operating margins rising from 4.9% to 5.6%. Operating marginpotential is supported by a very selective bidding approach, avoiding lowmargin contracts.Continued positive outlook. Engineering Services order book is up 4% to£438m. There remains a range of long-term opportunities but of particular noteis the Government’s recent announcement that funding for CP6 will increasefrom £41bn to £48bn. CP6 is the next period of Network Rail expenditurerunning from 2019 to 2024. In addition to the increased funding, CP6 will focuson both maintenance and renewals as key priorities which matches Renew'sfocus and skill set."Looks like a few early gamblers got stung this morning, but the price is bouncing nicely now. As for the Building division, this only accounts for a mere 9% of operating profit, so if revenue shows a decline this year the net profit effect will be pretty immaterial - and who's to say that this division won't show an upturn anyway or that RNWH won't operate selectively and improve margins?
geldman
21 Nov 2017
Sting in the tail It is perhaps not surprising that the price has fallen given that;"Specialist building revenue, however, will reduce after being particularly high, perhaps by as much as £35m, it said."We remain confident that we will continue to deliver stable operating profits in that business," the company added."Admittedly on lowish volume but anything near that number is a considerable drag on future profits. I can't complain because I paid 100p but I might take the top off my holding if the price goes up toward 440p
dazedandconfused
21 Nov 2017
Re: Results are ahead of expectations initial marketplace decline tho'...
gretel
21 Nov 2017
Results are ahead of expectations Excellent results this morning - 33.4p EPS is above all individual broker forecasts (which vary from 31.7p to 32.1p):[link] Engineering Services order book is up a reassuring 4% to £438m (2016: £421m).Almost £4m net cash now - there should be another acquisition soon.Lovely positive outlook too:"R J Harrison OBE, Chairman said: "I am pleased to report another strong set of results positioning the Group well for the financial year ahead. The Board is confident that Renew will continue to grow its position in its target Engineering markets whilst delivering further strong financial results."
gretel
13 Nov 2017
Results out in 8 days' time Nice £43,000 buy just now at 462.54p, well above the 459.5p offer price.A reminder that the results are out next Tuesday 21st November following the very satisfactory year end trading update:[link]
gretel
10 Nov 2017
RNS: Octopus buying more RNWH Octopus Investments have been buying and now own more than 17% with a chunky 62.6m shares:[link]
gretel
06 Nov 2017
A "successfulk year" In line with the positive trading update, here's an article about promotions at RNWH's Seymour Civil which notes its "successful year":[link] at Seymour House on Hartlepool Marina, Seymour Civil Engineering has enjoyed a successful year, securing and completing a number of major projects across the region.Most recently the firm celebrated a landmark contract win securing civil and infrastructure work for the £18 million exhibition development at Beamish Museum.The firm has recently started work on the £3.4 million regeneration of Church Street and Church Square in Hartlepool, working in partnership with Hartlepool Borough Council, The Tees Valley Combined Authority, The Heritage Lottery Fund, and Re-form Landscape.Kevin added: “As a team I am confident we will be able to lay the foundations for Seymour’s sustainable and structured growth going forward.”
gretel
06 Nov 2017
A "successful year" In line with the positive trading update, here's an article about promotions at RNWH's Seymour Civil which notes its "successful year":[link] at Seymour House on Hartlepool Marina, Seymour Civil Engineering has enjoyed a successful year, securing and completing a number of major projects across the region.Most recently the firm celebrated a landmark contract win securing civil and infrastructure work for the £18 million exhibition development at Beamish Museum.The firm has recently started work on the £3.4 million regeneration of Church Street and Church Square in Hartlepool, working in partnership with Hartlepool Borough Council, The Tees Valley Combined Authority, The Heritage Lottery Fund, and Re-form Landscape.Kevin added: “As a team I am confident we will be able to lay the foundations for Seymour’s sustainable and structured growth going forward.”
gretel
26 Oct 2017
Moving up nicely The bid price has now moved up to 450p or so from prior levels of 415p-420p, and the spread has narrowed. Hopefully this means a seller or two has been cleared, and RNWH can continue to run up prior to the results on 21st November, which we now know will be good.
gretel
12 Oct 2017
Good news for RNWH today From today's Times - this sounds like excellent news for RNWH, as "day-to-day maintenance and operation of the network" is precisely their remit:[link] Department for Transport will suggest that Network Rail will no longer have a monopoly over enhancements after warnings over spiralling budgets and missed deadlines.The move comes as the government prepares to publish its rail funding settlement for the next five-year period from 2019-24.It is believed that more cash will be invested in the day-to-day maintenance and operation of the network. New forecasts released by the DfT show that almost 850,000 people will be carried by rail into the ten biggest English cities during the morning peak by 2024 — a rise of more than 38,000 in five years.Chris Grayling, the transport secretary, is expected to announce that the £25 billion handed to Network Rail for routine maintenance between 2014-19 will rise to reflect higher demand.It follows evidence from the Office of Rail and Road, the rail watchdog, that there was a “need for increased volumes” of day-to-day repairs to prevent the Victorian rail infrastructure grinding to a halt."
gretel
04 Oct 2017
Re: Finncap : Buy with 586p target FYI here's what Finncap had to say this week after the trading update:"Growth, rising margin and net cash BUYPrice 410.0pTarget Price 586.0pRenew has confirmed it expects to report FY 2017 results (to September) in line with market expectations, delivering an increase in operating margin (we forecast 4.5% up from 4.2% last year) alongside growth in both revenue (we forecast +6.8%) and operating profit (we forecast +14.7%). Furthermore, a move into net cash is expected. We make no changes to our forecasts and reiterate our view that Renew’s strong track record of delivering essential services on large, long-term frameworks can command a higher rating (currently 12.8x FY 2017E EPS)."
gretel
03 Oct 2017
Numis have 500p price target The Mail's market report today features RNWH and notes that Numis have a 500p target:"STOCK WATCH - RENEW HOLDINGS Shares in engineering services firm Renew have been volatile, but in the long-term steadily on the rise.From about 379p in October last year, they closed yesterday at 415p after the board said sales were up 9 per cent and profit up 15 per cent.Analysts are upbeat about the company. FinnCap has a 'buy' recommendation on the stock, noting its strong track record of delivering on large, long-term projects. Numis has an 'add' recommendation, with a target price of 500p."
gretel
03 Oct 2017
New Buy tip for RNWH The markets are slowly coming to realise that RNWH are COMPLETELY different - and superior - to most other support services companies, as they provide obligatory and necessary maintenance and renewal work. They do not participate in tendering for large, new contract work which leaves other companies vulnerable to downturns.This is why Finncap in particular belive RNWH justify a higher rating than the rest of the sector and can put a 586p price target out there.Nice new Buy tip here:[link] results time and againRenew Holdings (LSE: RNWH) has seen a massive turnaround in earnings since its nadir in the 2008/9 recession. The provider of engineering services in regulated UK infrastructure markets has posted record result after record result in recent years.It said in a brief update today that it expects to report figures for its financial year ended 30 September “in line with market expectations, delivering an increase in operating margin alongside growth in both revenue and operating profit. The board also expects to report that the group has moved to a net cash position.”Its shares are trading up 4p at 414p, valuing this AIM-listed company at near to £260m. With City expectations of a 17% rise in EPS to 30p, the P/E is a reasonable 13.8 and the price-to-earnings growth (PEG) ratio of 0.8 is nicely on the value side of the PEG fair-value marker of one. As such, I rate the stock a ‘buy’."
sound money
02 Oct 2017
Re: problem of perception tego,Think generally that's fair. The counter argument is that RNWH are niche and margins are increasing. Because they are niche they are not chasing business.It's something to watch but if management keeps it's eye on the ball should be ok.One mans perception or the markets for that matter is another mans buying opportunity.M
