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Posted yesterday by Clarke Telecom - they installed "a cutting-edge private 5G network" at the Satellite Applications Catapult. Likely the first of many:
Https://www.linkedin.com/feed/update/urn:li:activity:7130541334741839873/
"Exciting News! The Satellite Applications Catapult (SA Catapult) is propelling innovation with the help of Clarke Telecom. 🛰️
In 2011, the UK government introduced Catapults to bridge the gap between research and industry, boosting competitiveness and productivity. SA Catapult is one of nine, focused on satellite-based products and space tech.
Recently, SA Catapult partnered with Clarke Telecom to deploy a cutting-edge private 5G network at their Buckinghamshire facilities. Clarke's expertise was pivotal in expanding the existing 5G network, benefitting companies at Westcott Venture Park.
Pano Mystridis, 5G Network Software Engineer, praised Clarke's professionalism and technical prowess, emphasizing their role in the project's success. This collaboration leveraged the latest Open RAN technology for a seamless installation.
Private 5G networks are revolutionizing industries by offering unmatched flexibility, security, and performance. Clarke Telecom's extensive experience positions them as a leader in this field.
About Clarke Telecom: With over 20 years of experience in cellular infrastructure, Clarke Telecom is your go-to partner for complex private 5G projects. From initial analysis to construction and commissioning, we've got your private cellular network covered."
Nice chart breakout now, with buying at the full 794p offer already this morning.
Looking good after the recent contract wins and in the run up up to the ahead of expectations results.
Clarke Telecom's LinkedIn account has suddenly burst into life, with news of its electric vehicle subsidiary, Clarke EV, having completed a substation project for Volvo for EV infrastructure in Perth:
Https://www.linkedin.com/feed/update/urn:li:activity:7125815130759536642/
And also working "with BT Wholesale and their customer VMO2 to successfully deploy the latest L26 small cell technology in Brighton, bringing a significant boost to mobile connectivity":
Https://www.linkedin.com/feed/update/urn:li:activity:7112087825683988480/
In addition, RNWH said in their last results:
"Renew is focused on leveraging opportunities in the electricity transmission and distribution market. This is expected to grow as a consequence of the changing energy generation mix where we note that Ofgem has announced more than GBP20bn(16) of initial funding to strengthen the transition to low carbon technologies"
I note that National Grid announced yesterday as follows:
Https://www.telegraph.co.uk/business/2023/11/09/national-grid-spend-up-19bn-rewire-britain-net-zero-era/
"National Grid to spend up to £19bn to ‘rewire’ Britain for net zero
Networks of new cables needed to power shift to heat pumps and electric cars
By Jonathan Leake
9 November 2023 • 6:04pm
National Grid is to spend up to £19bn on new pylons and transmission systems across the countryside as it “rewires the nation” for the net zero era, the company has said..."
The £200m framework contract win has now been reported on J Browne's own web site:
Https://browne.co.uk/news-blog/major-amp7amp-8-thames-water-wins-for-browne
RNWH subsidiary J Browne wins £200 million framework with Thames Water through to 2029.....
Https://www.linkedin.com/posts/j-browne-construction-ltd_utilities-water-waterinfrastructure-activity-7127941614689247233-optJ?utm_source=share&utm_medium=member_android
""We're delighted to announce three further significant wins under Thames Water‘s Area Wide Capital Delivery Framework, with a combined value of up to £200m to be delivered between 2023 and 2029.
The awards include:
⭐PROG1992 Water Mains Renewal: 5 DMA Renewals under Thames Water's AMP 8 Mains Renewal Programme, including ECI, Design and early Delivery in AMP 7
⭐PROG2004 Wastewater Rising Mains: Thames Water's early AMP 8 Rising Mains Programme, covering 15 renewal projects also including ECI, Design and early Delivery in AMP 7
⭐PROG2011 Water Trunk Mains R&R Programme: Thames Water's AMP7 and AMP 8 Trunk Mains Programme, including ECI, Design and early Delivery in AMP 7.
These workstream packages are awarded under the Thames Water Area Wide Capital Delivery Framework which has been extended through to 2030.
We’re up and running already on each of these workstreams, and are excited to again showcase our agile production capabilities by seamlessly undertaking ECI, design and early outputs in AMP 7 through to full scale AMP 8 delivery👷♂️
Our digitised operations, controlled through our tactical PMO continue to deliver dependably, and provide excellent value to Thames Water and its customers."
The prelims will be issued on November 28th:
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Notice-of-Results/92483432
They should be good as per the trading statement:
- revenues, operating profit and the cash pile will all be ahead of expectations to varying extents
- and "The Board looks to the year ahead with confidence, with the Group well positioned to continue to benefit from the UK's committed infrastructure spend. Renew's exposure to long term operating budgets continues to provide demand across our core markets"
RNWH were rated a Buy in the IC's recent survey of the top 100 AIM companies:
"Renew
A focus on maintenance contracts for road, rail and utilities schemes provides a steady stream of work for Renew Holdings (RNWH), and mean it can plan and invest safely in the knowledge that the job it is carrying out won’t suddenly be pulled by an unpredictable client.The vast bulk of revenues for its current financial year, which began on October 1, are already covered by its order book and its healthy levels of cash generated have funded a well-executed buy-and-build strategy. Its financial performance is impressive – adjusted operating margin grew from 1.6 per cent in 2010 to 6.9 per cent last year.This has underpinned a 22.4 per cent compound annual growth in earnings per share over the past 12 years, according to Berenberg analysts.Renew’s shares are more highly rated than peers such as Kier (KIE) and Morgan Sindall (MGNS), but deservedly so. And at less than 12 times forecast earnings, they’re hardly likely to break the bank. Buy."
Thanks Rivaldo for posting the regular updates - much appreciated!
Hopefully at some point, RNWH share price will reflect the solid growth story here..
Further info on Friday's acquisition of TIS:
Https://westcumberlandengineering.co.uk/news/the-shepley-group-to-expand-nuclear-manufacturing-capabilities-with-targeted-acquisition/
Extract:
"The acquisition, which will see TIS operate within Shepley Engineers subsidiary West Cumberland Engineering (WCEL), continues the growth of the Shepley Group and expands its already impressive portfolio of nuclear specialist capabilities.
TIS was founded in September 1995 by Managing Director Tony O’Pray, and has grown to be a leading nuclear fabrication specialist. The acquisition will double the WCEL workshop capacity and increase crane capability, ensuring that West Cumberland Engineering can not only continue to deliver its current workload, but also expand its capacity for new and existing clients, supporting nuclear decommissioning, nuclear new build and SMR’s. The acquisition secures the future of hundreds of highly skilled employees across the region."
Great news for RNWH's water division from The Times, with spending from 2025-2030 in the sector on wastewater etc tripling from the previous period to £40 billion:
PS : quite right Trouts LOL!
Https://www.thetimes.co.uk/article/uk-water-companies-spending-regulatory-requirements-chtk0jpmd
"The 17 water and sewerage companies operating in England and Wales plan to spend £272 billion upgrading sewage plants, outfalls and drinking water facilities over the next 25 years"
"Most of the spending (70 per cent) will be on improvement to wastewater infrastructure, with Moody’s saying that £70 billion would be spent on sewage outfalls alone. Work to improve the resilience of drinking water provision against drought will be concentrated in the southeast of England.
Spending from 2025 to 2030 should total £40 billion, Moody’s said, about triple what was invested in the previous five-year regulatory period."
Ooh, a rare mistake from Rivaldo. The Cumbria article was a good find, but the actual line from the story is
"I'm not sitting here thinking I want to be a £1bn enterprise in five years,” says Anand.
It's a small slip, but changes some of the meaning significantly! Still a good acquisition though... onwards and upwards!
Interesting article from earlier this year about McMenon, with whom TIS Cumbria has a nuclear collaboration (both are based in Workington) as part of the North West Energy Coast Alliance:
"Together they have won two machining and fabrication contracts at Sellafield, as part of its Programme and Project Partners Framework".
McMenon "want to be a £1bn enterprise in five years".
They expect to see "much more (growth) in 2023 following the twin successes of winning multiple contracts at Sellafield and a global product line acquisition".
And "One space I'm very keen to diversify into is clean energy. We have made substantial inroads into the nuclear, water and wind sectors and sold products into various projects,” he says.
“However, I do believe there could be much more. Hydrogen is possibly a natural extension, because we have been in the energy sector for so many years".
Https://www.in-cumbria.com/news/23310915.plan-make-workington-firm-household-name/
Good to see RNWH's nuclear decommissioning and new build division expanding with the £4.7m acquisition of TIS Cumbria.
Per TIS's last accounts to June '22 it seems they were operating at essentially breakeven given the change in retained reserves, with 27 employees.
However, they also own a freehold property valued at £3.2m (before a £0.74m bank loan), so it would seem RNWH have acquired the entire business for not very much at all on a net basis:
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Acquisition-of-TIS/92380993
For RNWH's Shepley Engineers:
Https://www.gov.uk/government/news/local-firms-join-sellafields-programme-and-project-partners
" Local firms join Sellafield's Programme and Project Partners
Four north-west companies have become the first smaller suppliers to join a long-term framework to help deliver major projects at Sellafield.
Published
11 October 2023"
This hyperTunnel process is fascinating - and exciting. For years my daydreams have included how to tunnel more effectively, but I never imagined anything like this. Incredible.
https://www.youtube.com/watch?v=RbBp8p3e2zI
Thanks Riv!
This from VP PLC's update today bodes well for RNWH:
"Within the Group's UK businesses, infrastructure, including water, transmission and rail, continues to perform well, with longer-term regulatory programmes proving supportive"
And news of an ambitious new partnership:
Https://news.railbusinessdaily.com/hypertunnel-and-amcogiffen-sign-uk-exclusive-distributor-agreement/
"hyperTunnel and AmcoGiffen sign UK exclusive distributor agreement
October 10, 2023
hyperTunnel, a technology company innovating underground construction methods, has signed an exclusive distributor agreement (EDA) with AmcoGiffen for the application of its technologies and systems in the UK rail sector.
Under the EDA, AmcoGiffen will have exclusive rights to use hyperTunnel technology – including digital twins, robotics, 3D printing and digital underground surveying, supported by AI and VR – for all enhancements, repair, rehabilitation and monitoring of underground spaces, slopes and track bed infrastructure, including stabilisation and water management....
....Dave Thomas, Operations Director at AmcoGiffen added: “We are convinced that the future of maintaining underground structures lies in robotics and automation. AmcoGiffen is equipped and ready to partner with hyperTunnel to pioneer its approaches in the UK rail sector while being fully aware of the challenges that may lie ahead for an early adopter of such exciting technology. This exclusive contract represents a significant business opportunity for AmcoGiffen and reflects our long-term ambition to lead innovation in the UK rail sector.”
Investors Champion are very happy with RNWH's performance:
Https://www.investorschampion.com/channel/blog/clean-reporting-profit-warnings-reassurance
"Renew: reassuring as always
Renew (AIM: RNWH), the engineering services group supporting the maintenance and renewal of critical UK infrastructure, announced that revenue and operating profit for the year is set to be marginally ahead of market consensus, which was for revenue of £927.9m and adjusted operating profit of £62.3m.
Net cash at 30 September 2023 is also anticipated to be ahead of market expectations, which were for net cash of £31.5m.
Renew remains well positioned to continue to benefit from the UK's committed infrastructure spend with exposure to long term operating budgets. Renew shares have proved to be commendably resilient in the small cap sell-off - long may it continue!"
RNWH is "anomalously cheap".....
Https://citywire.com/funds-insider/news/expert-view-bae-experian-ashtead-tech-renew-and-forterra/a2427094
"Shore Capital: Renew is ‘anomalously cheap’
Engineering group Renew (RNWH) is much lower risk than the market thinks and also has the ability to benefit from government infrastructure spending, says Shore Capital.
Analyst Tom Fraine retained his ‘buy recommendation’ and ‘fair value’ target price of 950p on the Citywire Elite Company, which climbed 2.4%, or 17p, to 730p yesterday.
‘We believe Renew presents an attractive opportunity for investors to benefit from the UK government’s commitment to spend £600bn on infrastructure from 2022 to 2027,’ he said.
‘Given the nature of Renew’s variable, cost-plus contracts, we believe it is very well placed to pass on inflationary pressures to customers. We also believe it is protected against economic downturns given that its revenue is driven by the public sector.’
Fraine said Renew has ‘a lower risk profile than the market perceives’ as its peers service much larger contracts.
He said the valuation of the company was ‘anomalously cheap’ given its return on invested capital, earnings, and cash position."
Yes, things are looking very positive. I am normally wary of AIM companies as their managements can sometimes be a little reckless, but RNWH seem to be a very steady outfit with a sound strategy. Being on AIM is possibly another factor holding back the SP, as many people look at it and lump it in together with general construction/housebuilders and treat it as being subject to the same cyclical factors. The focus on infrastructure (which lets face it, the UK is in desperate need of improvement) means the business and it's market is actually in a growth phase at this time, not contraction. It will almost be a shame when it inevitably gets swallowed up by some huge predator, losing it's unique edge.
Hopefully RNWH will soon reach the 900p-950p share price/ valuation range which all the covering brokers agree on, due to a combination of:
- growing recognition that RNWH has either met or beaten expectations every year since 2006
- further recognition of RNWH's long-term expanding and diversifying markets which all need ever-increasing amounts of maintenance and renewal expenditure (nuclear, water, 5G, highways, rail etc)
- likely earnings-enhancing acquisitions from the growing £31m+ cash pile
- plus there's been whispers of predatory interest in the past, and I suspect this will continue given the huge and secure forward order books and a historic P/E of barely 11 which is looking just too low given the prospects
And there's more good news for RNWH (via subsidiaries JBrowne and Enisca) over the weekend, with huge increases planned for spending on UK water infrastructure:
Https://www.thetimes.co.uk/article/bills-set-to-rise-as-water-companies-turn-on-the-spending-taps-px7pt9qvs
Extract:
"England’s water companies will pledge to invest up to £90 billion in the water and sewerage network in plans that will push up bills, particularly in the southeast.
They will submit their investment plans for 2025-2030 to the regulator Ofwat, proposing a significant boost to spending on infrastructure to tackle sewage overflows, harmful nutrients in rivers and water shortages.
Ofwat indicated this could total £89 billion over five years, up from £51 billion in the current 2020-25 cycle, as water companies react to public and government pressure to upgrade the UK’s infrastructure. The regulator has a year to review and approve the plans."
RNWH have delivered yet again - results to 30th September will be slightly ahead of expectations as regards all of revenue, operating profit and net cash.
The cash pile in particular will now be more than £31m, so year end dividends should be extremely healthy and there's always the potential for further and larger acquisitions now.
With 63p or so EPS likely for the year just gone, a historic P/E of 11 or so is just far too low for a company which has delivered successfully for so long and has such growth potential in a number of sectors.
And the outlook is extremely optimistic:
"The Board looks to the year ahead with confidence, with the Group well positioned to continue to benefit from the UK's committed infrastructure spend. Renew's exposure to long term operating budgets continues to provide demand across our core markets."
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Year-End-Trading-Update/92165343
Good news! Cannacord announce they have reduced holding from 9.6% to 4.9%. A strange move as this share looks solid, even if UK goes into recession later this year; but at least big chunky seller is out and hopefully RNWH can climb back towards 800p+
J Browne have been appointed to carry out seven months of works by Affinity Water and will be working 7 days a week for that period in a major water infrastructure upgrade around Stansted:
Https://www.bishopsstortfordindependent.co.uk/news/stansted-faces-eight-months-of-winter-roadworks-9324078/