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Good to see a third director buying shares in the last couple of weeks or so - at £20,000's worth I assume she's filled her ISA up with RNWH shares.
And this on the day before the year end! Has to be a pretty useful indicator of current trading:
Https://www.investegate.co.uk/renew-holdings-plc--rnwh-/rns/director-pdmr-shareholding/202209291624412239B/
Certainly intriguing to get a second director share purchase yesterday, again just before the year end.
I think an "ahead" statement is possible - the Board meeting to look at the final management accounts for the year won't have happened yet, so the directors are still free to buy at this stage. Even if not, at minimum it would seem that the final figures and/or the outlook will be encouraging.
Thanks Rivaldo,
I am hoping that the year end results will be the usual under-promise/ over-deliver. Not sure where earnings will be (high 50s?), but hopefully debt with be low or completely paid off and they'll be in position to follow the pattern of adding an earnings accretive bolt-on soon enough.
I am a bit surprised by the relative share price weakness (below 750p). Is this a reflection of concerns over the government's ability to fund some of the infrastructure spend given the very high levels of debt?
Guitar
Great to see the Chairman buying £40,000 of shares at 677p.
Certainly encouraging as it's so unusual! Most intriguingly, it's just before the year end and the closed period.....
Which suggests that things might be going rather well, with the year end trading update due any time soon:
Https://www.investegate.co.uk/renew-holdings-plc/rnwh/director---pdmr-shareholding/202209131619023253Z/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Renew+Holdings+PLC%20Alert
AmcoGiffen and Carnell have teamed up on a new JV for a 6 year National Highways framework which has already commenced:
Https://www.amcogiffen.co.uk/news/agc-first-project-for-new-joint-venture
"07/09/2022
New Highways Joint Venture Delivering for National Highways
AGC has almost completed its first project as a leading provider of road restraint systems (RRS) for National Highways, on their six-year Scheme Delivery Framework, which commenced in 2021.
The scheme located in the East Midlands, is carrying out safety barriers, find and fix work on M69 junction 1 to M1 junction 21 to create safer journeys for customers.
AGC, which comprises AmcoGiffen and Carnell will deliver barrier and fencing works in the central super region, and north west and north east regions.
The joint venture expertly marries highways with rail delivery methods and means that we can draw upon different skills and capabilities from both sister organisations, adding strength, combining competencies and specialist abilities.....
.....This is just a flavour of some of the activities that AGC will offer to help National Highways safely deliver an intense programme of investment over the coming years.
Bryan Kennedy, Operations Director, AmcoGiffen, said: “I’m excited that AGC has started its journey with National Highways and can bring fresh new ideas to support their crucial delivery plans. Our collective expertise means we’re able to innovate, adapt and flex to meet the needs of National Highways and its customers as it moves through RIS2 and beyond. We know that AGC will play a key role in helping National Highways future-proof our strategic road network and we’re delighted to be a part of that.”
Thanks Rivaldo. The article highlights many of the points that us holders have identified. While I've been trimming many other holdings, RNWH is firmly in my group labelled "Happy to hold during the recession". I don't want to move completely into cash, so finding gems like RNWH is a core part of my strategy for the upcoming turbulence. I've also got Smith & Nephew (benefiting from a huge backlog of elective surgeries) and LGEN (solid and a good dividend payer). Anyone got any others to look at that will fare well during the recession?
Good to see RNWH described as "exciting" by Chris McVey of the FP Octopus UK Multi Cap Income Fund :o))
Https://moneyweek.com/investments/stockmarkets/uk-stockmarkets/605291/the-best-uk-shares-to-buy-now
"The FP Octopus UK Multi Cap Income Fund blends UK shares from across the entire British equity market to construct a portfolio capable of above-market earnings and dividend growth throughout the economic cycle.
The fund seeks to generate an attractive and growing dividend yield. It benefits from being able to pick stocks where we see the most attractive opportunities at the most exciting valuations, regardless of a company’s size.
Following the recent market turbulence, many companies have seen their share prices disconnect from the underlying business performance, particularly within the small and midcap sectors.
We are therefore fortunate to have a large number of exciting opportunities on very attractive ratings."
"Engineering long-term growth
Renew Holdings (Aim: RNWH) is a UK-focused engineering-support services provider. It operates on some of the country’s most challenging infrastructure networks, including rail, water and energy.
The business operates with strong market positions underpinned by long-term, non-discretionary spending cycles. The company’s commercial agreements are also partly pegged to inflation, which allows it to better manage the challenge of increasing prices that are inflicting pain on many other UK shares.
The group has seen revenues rise by over 13% in the latest half-year report. Given the ongoing need for infrastructure spending in the UK, partly driven by the levelling-up agenda and the “greening” of the economy, we think Renew will continue to make significant progress."
Both Amco and QTS are amongst those working on a £116.6m rail project in Scotland for Network Rail now and through until 2023:
Https://www.newcivilengineer.com/latest/work-to-lay-second-mile-of-track-on-levenmouth-rail-restoration-gets-underway-12-08-2022/
As ex-CEO of Yorkshire Water and with over 12 years' experience in the regulated water sector she should bring lots of contacts and insights in helping to grow RNWH's water division:
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Appointment-of-Non-Executive-Di/88831378
The new issue of SCSW is out on Saturday, so it should be OK to publish their prior issue Buy verdict on the interims to 31st March:
"Renew Holdings
(Sharewatch) Renew’s H1 was in line. Sales were +13% to £414m, pretax profit +21% to £21.8m and eps +15% to 26p.
The Engineering Services side now accounts for 98% of revenue: Sales increased by 15% with EBITA +17% to £26.6m and EBITA margin +30bp.
Chief executive Paul Scott notes that the business has brushed aside most but not all of the inflationary headwinds, in part because his business is not newbuild so it is “not about hulking around tonnes of steel with volatile prices nor is it dependent on supply chains as it has a direct delivery model. Its long term maintenance framework contracts are based on a cost recovery model.”
In addition, it’s been the rising proportion of work from Rail, which is now >50pc of sales (9% margin) versus other sectors (6-7%) that has also helped push the average. The period saw a number of new framework appointments and extensions, and good progress in developing rail electrification capability. Another key highlight was the Brown water business, which was bought in March and is trading ahead of expectations whilst AMP7 boosts prospects overall in water. Order book grew 4% to £705m.
Scott has also confirmed the buy-in of the Amco pension scheme with a final one-off cash contribution of £1.6m, which going forward saves £0.5m annually - and it is virtually debt free at present.
Slightly longer daylight hours in H2 will repeat the usual seasonal bias so Renew looks well placed to beat the forecast of £53.2m pretax profit/eps 54.5p. Keep buying."
Great news... another piece of "recession proof" work.
Good news for Clarke Telecom from an article dated 4 days ago. Looks like a lot of work:
Https://www.counterpointresearch.com/srn/
"Emergency Services Network
Separately, the UK government is financing the construction of a new emergency services network (ESN) across the UK. Built and operated by EE, with equipment provided by Motorola Solutions, the ESN will also consist of 292 Extended Area Service (EAS) sites financed by the UK government to ensure coverage in some of the most remote parts of the UK. These EAS towers will be available for other mobile operators to offer commercial services as part of their SRN network committment. Achieving the coverage data shown in Exhibit 1 will depend upon the availability of these EAS sites.
Project Status and Schedule
Operators in Phase 1 are in the process of securing sites, reaching rental and access agreements with site owners and obtaining the necessary permissions from planning authorities. Although a small number of PNS sites have already been deployed, the main build out is expected to start sometime in 2H 2022. Clearly, progress will depend on cooperation with the various rural communities. Counterpoint Research understands that two of the operators are expected to announce their preferred hardware vendors within the next month or so.
In the case of Phase 2, contracts to design and build the towers, install base station hardware and manage the TNS sites have been awarded with the winning bidders being: Clarke Telecom, Killarney Telecommunications, Mitie Technical Facilities Management and WHP Telecoms. In addition, a tender notice to supply the backhaul transmission network for the TNS sites was issued in May 2022."
There have been some big swings in the SP today, up to 789 at one point, though I haven't seen reason as to why that has happened. Are there any chartists on here who can assess the current pattern?
Buys coming in at 779p and now 789p....perhaps more/larger trades will be reported later since these are relatively small.
Overhang cleared? Something occurring? Maybe even takeover interest (there has been mention of this being a possibility in the past)? Or simply a re-rating taking RNWH nearer to where it should be valued.
Looking good now. And ended the day strongly with several buys at or around the full 730p offer price.
Good to see AmcoGiffen and Network Rail working so closely together:
Https://www.amcogiffen.co.uk/news/better-together
The new Sizewell C nuclear power plant has just been given the go-ahead, costing £20 billion:
https://www.bbc.co.uk/news/uk-england-suffolk-62235221
This should be good news for RNWH given Seymour Civil's existing large presence at Sizewell B (and Sellafield etc).
All great news and all projects that are guaranteed to continue regardless of economic fallout from a recession. This share is one of my safe bets for the coming turmoil in the UK and World economy.
New £2.7m contract win for AmcoGiffen in Scotland for transformation of derelict land and reduction of flood risk:
Https://projectscot.com/2022/07/amcogiffen-to-lead-2-7m-transformation-of-barrheads-carlibar-park/
It looks like there's a major new phase of nuclear decommissioning happening at Sellafield for Cumbria Nuclear Solutions, in whom Shepley are a major player, judging by this which notes that the Decommissioning Delivery Partnership has been extended by 5 years to 2026:
Https://www.neimagazine.com/features/featurecranes-support-new-phase-at-pfsp-9772782/
And RNWH have set up a web site for their new Arq collaboration to promote their capabilities in the potentially huge drive for rail electrification:
Https://arqrail.com/about-us/
Severfield's results today also have encouraging commentary as regards spending on RNWH specialisms such as rail electrification, roads, nuclear etc in a section entitled 'A golden age of infrastructure'.....here's an extract:
"In November 2020, the UK Government released details of its five-year plan, the National Infrastructure Strategy ('NIS') to invest in digital, transport and energy to drive economic recovery, levelling up and meeting the UK's net zero emissions target by 2050. This plan announced funding of £650 billion, an increase of around £100 billion from the previous plan, for developments in roads, railways, power networks and other UK infrastructure projects. At Network Rail, in addition to HS2, the CP6 (control period) budget of around £53 billion (2019-2024), which includes a significant amount of rail electrification work, is substantially higher than the previous CP5 budget of £38 billion (2014-2019). At Highways England, the second Road Investment Strategy ('RIS2') budget of £24 billion (2020-2025) is a significant increase over the expenditure of £15 billion during 'RIS1' (2015-2020)."
Encouraging comment from VP PLC's results today - they note that both the major new 5-year water (AMP7) and Rail (CP6) frameworks were subdued for most of that year, but improved in Q4 to 31st March.
Which makes RNWH's excellent H1 figures and outlook look even better, especially with the major infrastructure spend programmes now picking up nicely.
AmcoGiffen have won a £20m rail construction project in Ebbw Vale to be built over the next 18 months:
Https://www.constructionnews.co.uk/civils/design-partner-named-for-70m-welsh-railway-upgrade-10-05-2022/
AmcoGiffen have won a place on a new £1.6 billion civils and infrastructure framework:
Https://www.eastmidlandsbusinesslink.co.uk/mag/news/east-midlands-firms-win-place-on-1-56bn-civils-and-infrastructure-framework/
J.Browne are on a roll - they've announced a second framework win within 4 days.
And this one's even better, as sole supplier to Affinity Water for four years:
Https://jbconstruction.co.uk/news-blog/j-browne-awarded-4-year-below-ground-framework-agreement-with-affinity-water
"J.Browne Awarded 4-Year Below Ground Framework Agreement with Affinity Water
May 23, 2022
J Browne Construction has been awarded the Below Ground Assets framework agreement as sole supplier with Affinity Water. The framework will be in place for 4 years and is potentially extendable by a further 4 years. This award follows a successful 4-year period of working with Affinity Water, culminating in over 20km of new trunk main pipelines being installed within the last 12 months.
The framework covers the design, construction and commission of trunk mains and distribution mains across the Affinity Water network, including 30km of large diameter pipe work in the initial 4-year period.
This award follows the successful extension of our Above Ground Assets Framework in 2021 through to March 2026."
News of both QTS and AmcoGiffen now working on a major £116m Levenmouth Rail Link project which will run through to March 2024:
Https://www.qtsgroup.com/news/construction-of-levenmouth-rail-link-project-gets-underway
Plus Shepley report they're recruiting "due to a strong order book":
Https://twitter.com/ShepleysUK