tejo
02 Oct 2017
problem of perception Renew continues to look attractive but the problem lies in the perception that all these support companies are high risk. One only has to look at Carillion - Interserve-Galliford Try construction-Capita-Serco-Bovis and many others to realise that the profit margins are not sufficient to protect the company when contracts go wrong. This particularly the case as the company grows and management focus is diluted. I would not sell my shares but neither would In increase my exposure to this sector.
gretel
02 Oct 2017
Re: Good trading update today Finncap reiterate their 586p target and Buy recommendation following today's update.They state 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
02 Oct 2017
Good trading update today Lovely jubbly - trading nicely in line with expectations for the year, and now sitting on cash ready for further acquisitions:[link] margins too, alongside the increases in revenues and profit.
gretel
26 Sep 2017
Finncap : Buy with 586p target Finncap today reiterate their Buy and 586p target. That's 40% upside from 418p.They go for 32p EPS for the year ending in 4 days' time, with a 9.2p dividend.For this year starting 1st October they forecast 34.1p EPS with a 10.6p dividend.
gretel
19 Sep 2017
Clearance of an overhang? Big trades just now - 1,158,000 shares traded at 418.88p. Followed by an immediate move up, which suggests the clearance of an overhang.
gretel
18 Sep 2017
Tipped by Charles Stanley analyst James Rae of Charles Stanley picks "Three solid AIM stocks to buy now" - and the current year P/E will be even lower in 2 weeks' time at just 12.5:[link] Holdings (Aim: RNWH) is a highly specialised engineering-services business with excellent revenue visibility. The company has healthy margins, strong cash generation and a growing order book. Crucially, the vast majority of its revenues arise from necessary maintenance operations. These include helping to decommission the Sellafield nuclear site and maintaining tunnels and embankments for Network Rail. The shares feel too cheap on a price/earnings ratio of 14 times, considering the order book strength and potential for growth through acquisitions."
gretel
14 Sep 2017
Year end trading statement soon Approaching the 30/9 year end now, with a trading statement due in early October.Given almost-historic 32p EPS, with 34p EPS currently forecast for the year about to start and 36p EPS going forward, RNWH's P/E is about to fall to only 12.2. Which is too low imho. Finncap have a 586p target, so there's lots of upside.And given the likely net cash position, I'm expecting more earnings-enhancing acquisitions.The outlook in the interims couldn't have been much more confident:"R J Harrison OBE, Chairman said: "Our established strategy of providing engineering services in regulated UK infrastructure markets continues to deliver positive results for Renew. This has been another record half year, with strong growth in both revenue and operating profit. I am particularly pleased with the improvement in Group operating margin to 4.2%, on track to meet our target of 4.5% for the year. As a result, the Board has increased the interim dividend by 13% and we are confident of delivering full year results in line with market expectations."
gretel
04 Aug 2017
500,000 new 5G masts coming? From today's Daily Mail - RNWH's Clarke Telecom are at the forefront of UK telecoms infrastructure, and 500,000 new mast for 5G would provide a barrel-load of new work:[link] firms fight to erect 500,000 masts for a new super-fast 5G mobile internet networkPublished: 21:50, 3 August 2017 Mobile operators are calling for major reforms to Britain's planning system so they can erect 500,000 masts for their new super-fast 5G network.The bosses of Three, EE and O2 say a rapid increase in the number of transmitters across the country is needed for a proposed 5G mobile network to be in place by 2020.The technology, which is still being tested, will mean data can be transferred wirelessly at dramatically faster speeds than existing 3G and 4G networks.It is seen as a vital step as more devices connect to the so-called 'internet of things', placing more demand on existing airwaves. etc"
gretel
11 Jul 2017
New £2.4m gas works contract Major new £2.4m 7-month gas works contract for RNWH's Forefront Utilities in Brixton:[link]
gretel
19 Jun 2017
Tipped today by Finncap Finncap has today issued its quarterly note on the Support Services sector. RNWH is one of its 7 favoured picks (amongst the others is ACL, which I also own), with a Buy and a 586p target price:"Invest in defensive markets where share can be takenRenew - Renew's repair and maintenance services are fundamental to the UK's energy, gas, water, telecoms and rail infrastructure. The order book typically provides visibility on 65% of next year’s sales, but in reality the vast majority of Renew's work is on large, long-term, non-discretionary frameworks. This supports attractive and relatively low-risk growth prospects."
sound money
15 Jun 2017
Re: In "More importantly look at the FCF."Ah no one picked me up on my mistake.Meant to draw attention to return on equity of 39% and return on capital of 41%. Which of course are excellent.FCF not Renew's strongest valuation measure.M
PIE-EATER
14 Jun 2017
Re: In SMI think you have just hit the nail on the head......long term hold (and top up as appropriate)
sound money
13 Jun 2017
Re: In Hi Guitarsolo,My thoughts exactly. Around these levels not too expensive for a niche player.Long term hold that fills a hole in my portfolio.M
Guitarsolo
13 Jun 2017
Re: In Morning Sound, RNWH is one of my favourite companies. I had a tonne of these at 90p but had to sell most to raise money back in the 240s. Shame and bad timing. They had to be sacrificed as one of the lower divi payers.I would love to rebuild a decent holding again but am obviously going to have to pay more for it. I have a strategy that might work with some degree of luck and discipline. Bought some more yesterday at 425.2p.My assessment of RNWH though is that it is superbly run and has a massive moat around it. It is a necessary specialist in so many areas (e.g. nuclear decommissioning) that are still going to be paid no matter what happens to the wider economy. Does that deserve such a premium rating? Perhaps not. But at a P/E of under 15 I reckon it remains a buy. The company's acquisitions seem to have always been bought for a good price and embedded well into the system. Management needs to continue to do that - but as you point out FCF is very good and debt is minimal. Given that EPS are c.34p but the divi is just about 8p....that leaves plenty of cash available to make the purchases. Guitarsolo
sound money
07 Jun 2017
In Bought on election worries at 423. a prospective EPS of 12 for 2018. Consensus eps is 34p.More importantly look at the FCF.M
