Renew Holdings Share Price (RNWH)

Funny that, bit of speculation at 10 am regarding takeover coincides with a half a million share purchase one minute before the market closes for the weekend.There is definitly something going on here.

This company in light of recent events (May G Cost /Kier)bid is a strong candidate for a takeover from one of the big boys probably an international.If you look at the structure of Renew it as some tasty ingredients. It is not a bog standard builder or road layer it as highly specialized difficult market entry companies within the group which larger companies have to use wether they like it or not . In my experience that usually leads to those companies saying why are we paying these for services when we could own them. Watch this space we could see some action when it is least expected.

Good summary of RNWH's prospects here: http://www.yorkshirepost.co.uk/business/business-news/renew-holdings-decision-to-shift-focus-paying-off-1-5543197 "Renew Holdings’ decision to shift focus paying off Published on 03/04/2013 00:01 Engineer Renew Holdings said its half year results will show further growth in its rail and nuclear businesses, an increased forward order book and a reduction in net debt. The Leeds-based group’s order book is growing as the engineer shifts its focus towards regulated areas such as nuclear, rail and water and away from construction. The group said results for the six months to March 31 will show further growth in its engineering services division, which covers infrastructure, energy and environment. Of these, the strongest performers are rail, which sits in the infrastructure business, and nuclear work at Sellafield, which comes under energy. Net debt has reduced to under £4m from £6.75m this time last year. Renew said it expects to meet full year expectations. Analysts at Numis have pencilled in pre-tax profits of £10.4m in 2013, up from £10.0m in 2012. Renew’s order book had grown to £340m by the end of December from £289m a year earlier. Its engineering services order book had grown by a quarter to £245m from £197m. Engineering now makes up about two thirds of its revenues and Renew is targeting a 70/30 split by the end of 2014. Renew said key contracts include being one of three firms to win a four-year framework deal at Sellafield nuclear processing plant in Cumbria worth a potential £280m. Work is due to begin later this month. The company derives 15 per cent of its revenues from Sellafield. The group’s Amco subsidiary has won orders worth £29m, including £13m for bridges, tunnels and viaducts. It has also won a second deal with Northumbrian Water for trunk mains cleaning. Renew is looking to boost either its water or energy businesses with bolt-on acquisitions that will help it reach its £500m turnover target by 2014. The group’s markets have high barriers to entry and much of its work is contract renewals, offering good visibility for future revenues. Renew’s business comes from its clients’ operating budgets rather than their discretionary budgets, which means the work has to be undertaken even when the economy slumps."

A reminder that the latest forecasts are 13.3p EPS to this 30th September and around 14p EPS to 30/9/14 - a P/E of just 6.25. That's with dividends of 3.3p and 3.5p - a 4% divi yield. There has to be potentially 50% upside from here to a P/E of 9.4 imho. Here's today's RNS - a poster elsewhere has noted that "I believe they are providing an operations update to analysts next week, perhaps in an attempt to change perception of the company", so hopefully some presentations to the City will get things going nicely: http://www.investegate.co.uk/renew-holdings-plc--rnwh-/rns/trading-update/201304020813342864B/ "Ahead of the interim results for the half year ended 31 March 2013, the Board confirms that results for the first half of the year are expected to be satisfactory and will demonstrate further growth in Engineering Services, an increased forward order book and a continued reduction in net debt. The Board continues to anticipate meeting its full year results expectations. Renew's interim results for the six months ended 31 March 2013 will be announced on Tuesday 21 May 2013."

A tick up today and looking rather good online. Currently I can only buy 10k maximum at 86.94p, but I can sell 40k at 85.35p. RNWH remains on an uptrend, and sharp re-ratings can happen when you least expect them. Per Hemscott, on Friday Panmure's reiterated their forecasts of 13.3p EPS this year to 30/9/13, 13.9p EPS next year and 3.31p and 3.47p dividends respectively. That's a current year P/E of just 6.4 and a 3.9% dividend yield.

anyone expecting a substantial rise in the coming months? i was in here last year and cashed out for tidy profit after it spiked above 92.00 but it's only purred since.