Renew Holdings Share Price (RNWH)

A nice £5m highways company acquisition today, which in particular addresses the growth to come from the structures renewal programme within the UK Government's planned investment in the next Road Investment Strategy (RIS3) from 2025 to 2030:

Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Acquisition-of-Route-One/93621615

Https://www.networkrailmediacentre.co.uk/news/multi-million-pound-investment-to-futureproof-world-famous-glenfinnan-viaduct

"Thursday 4 Apr 2024

Multi-million-pound investment for world famous Glenfinnan viaduct

Network Rail will start a £3.4m investment to carry out repairs on the 123-year-old Glenfinnan viaduct this month.

Along with principal contractor AmcoGiffen, engineers will assess the condition and strength of the viaduct, while carrying out work to protect it from water erosion, completing concrete repairs and making improvements beneath the track to keep the stone ballast in place.

etc"

Per this from last week, the framework quoted below is worth nearly £2 billion in total:

Https://www.newcivilengineer.com/latest/network-rail-announces-partners-for-cp7-capital-works-delivery-in-north-west-and-central-region-27-03-2024/

"AmcoGiffen has recently been appointed to six lots on Network Rail's North West and Central CP7 framework. This significant achievement is a result of our capabilities, commitment to excellence, operational efficiency, and testament to the dedication of our people. Our lots include medium and small projects including design and build options and will extend our asset management relationship with Network Rail.

The five-year framework, which starts this month will support our sustainable growth allowing us to continue collaborating with Network Rail to generate employment and development, create local supply chain spend and drive lasting and positive change to the region and the rail industry."

Https://www.linkedin.com/posts/amco-giffen_rail-delivery-designandbuild-activity-7181669482480766977-MsF0?utm_source=share&utm_medium=member_android

Thanks for your recent posts Rivaldo.

The pipeline of work for RNWH should remain solid and it clearly knows how to do this at an acceptable profitable margin. More of the same please!

It feels like we have had a bit of a silent re-rate. Nothing dramatic, no major announcements or broker notes with dreamy predictions. But somewhere between £9-£10 feels about right on a p/e basis.

Trading at 6 months was in line with expectations; read it will slightly under promise and over deliver at full year.

A decent earnings accretive acquisition will help push things along in the right direction.

Guitarsolo

This news from Network Rail looks good for RNWH - Network Rail have announced £2.8 billion of expenditure in the next 5 years to protect railways from climate change and extreme weather.

They particularly note repairing railway cuttings and embankments, improvements in drainage, anti-flooding measures etc which are RNWH's bread and butter.

In addition, there's a £19.3bn spend on replacing old assets with new ones and investing in projects such as digital signalling, with £12.6bn earmarked for maintenance - again all grist to RNWH's mill:

Https://news.sky.com/story/network-rail-to-invest-2-8bn-on-protecting-railways-from-climate-change-and-extreme-weather-13107105