Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Good news for RNWH's Clarke Telecom subsidiary- in particular the plans for a wider upgrade by Telefonica:
Https://www.shieldsgazette.com/news/politics/council/plans-approved-for-5g-masts-on-south-shields-social-club-despite-health-concerns-raised-by-neighbours-3432353
"Plans approved for 5G masts on South Shields social club, despite health concerns raised by neighbours"
"Speaking at the meeting, Vicky Parsons, from planning agent Clarke Telecom, said the move is part of a wider push from Telefonica UK Ltd, to upgrade a number of their sites.
This will also provide improved 2G, 3G and 4G coverage for the area, including for Vodafone customers."
Much of RNWH's business comes from the Humber region, the North East, Scotland etc.
In addition to the major brownfield development announced as posted below, Wednesday's Budget also had details of major spending allocations from the Government's huge Levelling Up fund.
This represents £billions of funds for projects detailed here, many of which will be suitable and surely prioritised for local RNWH businesses such as Seymour Civil, Shepley, QTS etc:
Https://www.constructionenquirer.com/2021/10/27/regional-levelling-up-projects-full-list/
There should be lots of work for RNWH's VHE from today's Budget - "£1.8bn being spent on bringing 1,500 hectares of brownfield land into use and £11.5bn funding up to 180,000 new “greener” homes on brownfield land":
Https://www.mortgagefinancegazette.com/market-news/housing/budget-confirms-brownfield-development-cladding-removal-fund-27-10-2021/
Https://www.vhe.co.uk/news/bringing-brownfield-back-to-life-29-06-2015
"VHE has become widely recognised as one of the leading experts in dealing with brownfield contamination throughout the United Kingdom, using a wide number of different and effective in-situ / ex-situ remediation techniques to solve different contamination issues"
Great news today for RNWH - its Seymour Civil subsidiary is Hartlepool-based and has already won loads of work at the Redcar transformation. There's bound to be more coming their way here with another £200m being spent:
Https://www.thetimes.co.uk/article/loan-is-cue-for-launch-of-teesside-quay-gwzl786bk
"The UK Infrastructure Bank has made its first investment, lending £107 million to finance a project on the site of the old Redcar Steelworks on Teesside.
The government loan will be used to build a new quay to service the offshore wind industry, where equipment can be built, stored and shipped. The new development, which is expected to cost about £200 million in total, will support about 800 jobs in the area."
Mayers, I perceive the situation to be exactly the opposite. RNWH have already stated that profits will be materially ahead of expectations, and have quoted a minimum level of £50m - therefore it's likely that the final figure will be still further ahead of the quoted figure.
Moreover, the current year forecasts will therefore likely be lifted to adjust for the raised expectations. So we should get a virtuous circle of both higher historic figures and increased forecasts to lift sentiment still further for RNWH.
Looks a good new appointment at Carnell:
Https://www.carnellgroup.co.uk/carnell-appoint-business-director/
"We are delighted to announce the appointment of Adrian Oulds as our new Business Director.
Ady joined the team today from National Highways, where he most recently held the position of Interim Regional Director for the Midlands. He is a chartered civil engineer with more than three decades of industry experience spanning both the public and private sector. During this time, he has worked for organisations such as Warwickshire County Council, Atkins, CH2M and National Highways, developing a wealth of knowledge in the design, commercial and delivery aspects of highway maintenance.
The relationships he has built over the years, particularly in the midlands, where he led the roll out of the first Asset Delivery contract, will be key to helping us mobilise the new Scheme Delivery Framework (SDF) contracts and capitalising on other new business opportunities around the country.
etc"
A close above £8 on Friday would be most welcome so would a bit more volume to confirm this current up leg.
Seymour Civil are working on a new £4.5m project in the giant Teesworks redevelopment:
Https://www.gazettelive.co.uk/news/teesside-news/work-ramps-up-new-45m-21847263
"Work ramps up on new £4.5m roundabout for Teesworks access
Teesworks is the UK’s largest Freeport and has been set up to promote economic growth
etc"
Morning Guitarsolo, yeah the spread can be large here at times. 725p was tested last couple of days and looks like some indecision yesterday so could be the end of the current retracement, time will tell. Bought in this morning at 739p so happy to wait to see how this goes in the run up to results in December.
The last update made not long before the end of the accounting period (30.09) said that "adjusted operating profit" would not be less than £50m. With 79m shares that would equate to adjusted EPS of over 63p (it depends how much they adjust them!).
But if anywhere close, that put RNWH on a multiple of under 12 which for a no/low debt, consistently profitable and critical service provider still strikes me as cheap. I would add more but this is already my largest holding by value, and I generally want dividends so it has to sit in the growth corner of the portfolio!
Encouraging comment in VP PLC's trading update today, with the areas relevant to RNWH looking very good and expected to accelerate from 30th September:
"Certain areas of major infrastructure investment such as HS2 have been very busy for the Group, with other key elements, such as the rail sector (CP6) and water (AMP7) expected to accelerate in H2."
The drop is a buying opportunity imho, mainly caused by the general market nervousness and fall in sentiment leading to temporary profit-taking.
Shanny, beware a very large spread on these shares. It makes it definitely a buy-and-hold investment in my eyes. As for timing an entry, I'll leave that to you but I would check-in on any day when the market has a general panic over something (e.g. Evergrande or something unrelated) as it might be a chance to pick some up at a good price.
The SP has been on a stellar run this year, re-rating from £5 to over £8 recently. There was always going to be some profit taking along the way.
There seems to be nothing but good news about this but ever since I bought this share a couple weeks ago the SP seems to be heading south, anybody got any idea why ?
Looking at the reaction of the SP today that's not good news I suppose ??
Good to see a heavyweight player in Peel Hunt appointed as joint broker - they'll bring additional heft to attracting institutional investment interest here:
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Appointment-of-Joint-Broker/86184711
RNWH's QTS have just begun work on a new £8m anti-flooding project for Network Rail in Dumfries, Scotland.
And QTS are in prime position for £149m of such works in the current period:
"From 2014 and 2019, more than £120m was invested in earthworks, drainage and bridge strengthening projects in Scotland and from 2019 to 2024 more than £149m will be spent."
Https://www.railadvent.co.uk/2021/09/network-rail-begins-essential-8m-work-at-dumfries-to-reduce-flooding-risk.html
Think I got my entry wrong here, sold for 2% loss, looking to re-enter at some stage soon. 725p to 750p looks good but would need to see it hold otherwise 700p area in my opinion.
Terrific news - RNWH's Carnell subsidiary have won the maximum 5 lots on the new National Highways framework over the next 6 years, 3 of them in a JV with RNWH's other subsidiary AmcoGiffen. This is worth a very nice £147m.
And these are "the longest duration, highest value contracts in Carnell’s history. Coupled with the move into road restraints, this provides a fantastic, solid foundation on which to grow and develop our business further in the coming years.”
Https://www.carnellgroup.co.uk/national-highways-sdf-success/
"National Highways SDF Success
We are delighted to announce that National Highways (formerly Highways England) have awarded us five Lots on the new Scheme Delivery Framework (SDF). The total value of the contracts will be £147m over 6 years, with the new delivery model commencing in January 2022.
The five Lots are the maximum number that could be awarded under the restricted procurement rules that National Highways have applied to the new framework. Three of which are in a Joint Venture (JV) with our Renew sister company AmcoGiffen.
Contracts Awarded
Civil Engineering: Central Super Region – Areas 6, 7, 8 and 9.
Drainage: North East Region – Areas 12 and 14.
Road Restraints: Central Super Region – Areas 6, 7, 8 and 9 in a JV with AmcoGiffen.
Road Restraints: North West Region – Areas 10 & 13 in a JV with AmcoGiffen.
Road Restraints: North East Region – Areas 12 & 14 in a JV with AmcoGiffen.
SDF will replace the current Construction Works Frameworks (CWFs) and ASC/PAD contracts. The phased introduction means that our current Civil Engineering, Drainage and Road Lighting & Electrical CWF contracts continue in Area 10 until 2023 and Area 6&8 until 2024.
A strong outlook
Delivering these new framework contracts as a Tier One supplier to National Highways, builds a robust forward programme through to 2027/28. The move into road restraint work alongside AmcoGiffen diversifies our portfolio of work and provides further opportunities.
Andrew Sharp, Carnell Deputy Managing Director commented:
“We have built a strong reputation on safely delivering drainage and civils schemes on the strategic road network over the last three decades. I am thrilled to have secured these SDF contracts, which will see us further develop our collaboration with National Highways and fellow delivery partners. These frameworks represent the longest duration, highest value contracts in Carnell’s history. Coupled with the move into road restraints, this provides a fantastic, solid foundation on which to grow and develop our business further in the coming years.”
RNWH gets a brief tip/mention in today's Mail on Sunday, in an article about AIM and which companies to buy:
Https://www.thisismoney.co.uk/money/share-investing/article-10027699/Volatile-AIM-Wild-West-brave-chance-strike-gold.html
"Lee Wild, head of equity strategy at wealth platform Interactive Investor, also likes.....engineering infrastructure business Renew Holdings. All fit Millar's template of niche market leaders.
Wild adds: 'All three have been brilliant in terms of share price performance, but they also pay dividends to shareholders.'"
Bought today at 800p, like revenue rising and in turn profits, ROCE, ROE, sales and eps growth. With good divi cover I expect that to rise in the coming months too. Government spending plenty on infrastructure, just need to sort labour shortages out so things don't falter. Current liabilities are a slight concern but generating cash so not overly worried. Chart in a lovely uptrend so bought on this latest pullback, nice run into results would be most welcome.
Mentioned again on Saturday
https://www.pressreader.com/uk/the-daily-telegraph-your-money/20210911/281672553064236
RNWH are tipped in today's Telegraph as one of five "renewable" companies who'll benefit from billions of pounds to be spent in the nuclear sector:
Https://www.telegraph.co.uk/investing/funds/go-nuclear-five-renewable-investments/
Hi Rivaldo. I've been in these shares for some time, having doubled my money already. At the moment, I still feel the shares are a 'buy' based upon the rate of growth, affordable (for Aim stocks!) p/e, the good visibility to future earnings and potential for more earnings enhancing acquisitions. In my view, a takeover cannot be ruled out either because it is the sort of business that private equity look at.
Peel Hunt have raised their target price to 900p (from 750p). Numis have also raised their target to 875p (from 730p).
And there's some very positive commentary from Peel Hunt in the Yorkshire Post:
Https://www.yorkshirepost.co.uk/business/strong-demand-pushes-renews-results-ahead-of-expectations-3374351
"Analyst Andrew Nussey at Peel Hunt said: “Following the better than expected interim results, Renew has continued to deliver a strong trading performance.
“Activity levels remain high, supported by the strategic differentiation through self delivered, essential multi-disciplinary services to key infrastructure assets.
“Moreover, the operational focus and improving quality and mix of earnings has supported an increase to our margin expectations.
“We note that the integration of the two cash financed acquisitions in the period, Browne and REL (for a combined price of £32.5m), are proceeding to plan and trading in line with management’s expectations.”
The good news just keeps rolling in. Today's update bodes extremely well for the annual results and hopefully a generous increase in the dividend. Despite having enjoyed a significant re-rating in the last 12 months the shares are still good value.