Renew Holdings Share Price (RNWH)

Bought 400 shares today. Liked the fundamentals of the company. A strong balance sheet.

Very positive interview with the CEO - essentially the small parts of the business which weren't fully operational will be back in "weeks". Interesting to see that RNWH were involved in setting up the 5G network at the new Nightingale hospital in London:

Https://www.yorkshirepost.co.uk/business/renew-proves-resilient-during-virus-outbreak-2858131

And nice analyst commentary from Numis:

Https://citywire.co.uk/funds-insider/news/the-expert-view-topps-tiles-renew-and-mcbride/a1358721?ref=citywire-money-latest-news-list#i=3

"Numis upgrades ‘impressive’ Renew

Numis has upgraded engineering services company Renew (RNWH) which has proved defensive during the Covid-19 crisis and is at the forefront of an expected pick-up in infrastructure spending.

Analyst Howard Seymour upgraded his recommendation from ‘add’ to ‘buy’ with a target price of 590p on the shares, which surged 11.5% to 466p yesterday.

‘It is very impressive that over the lockdown crisis to date, some 80% of Renew’s works have continued and only 13% of staff furloughed,’ he said.

Seymour said it was just as impressive that he was reinstating estimates so early. ‘Our assumption of c.15% disruptive impact on earnings in our view is prudent, but it is likely to be a major operational outperformer versus peers,’ he said.

‘Results to date and outlook in this crisis demonstrate the attributes of the Renew business model at an unprecedented time that provide both defensive qualities but also place the company at the forefront of expected acceleration of infrastructure spend.’"

The IC says Buy today:

“Renew’s preferred non-discretionary infrastructure markets are underpinned by long-term regulated budgets. This should prove defensive in the face of a wider construction slowdown. With further work likely to arise from the government’s promised £640bn infrastructure revolution, the outlook beyond this crisis remains promising. Buy“

Another key paragraph from the IC article:

"its focus on essential infrastructure maintenance activities means 80 per cent of its work has continued. Rail, highways, water and telecommunications have all been designated as ‘critical’ sectors. That is good news considering more than 90 per cent of sales and adjusted operating profit are derived from engineering services."

Numis upgrade to Buy (from Add) with a 590p target.

Shore Capital reiterate their Buy and 570p target.

Peel Hunt also reiterate their Buy and 575p target.

Enough said :o))

The H1 results look good to me - and most importantly, the outlook is rosy, with 80% of activities having continued as normal and the remaining 20% now coming back on stream.

20.1p EPS in H1 to 31/3 is up a very creditable (given the lockdown) 5% from last year, net debt is down - despite the Carnell acquisition - and Engineering order books are up a whopping 11% following "record trading" in the half year.

Prospects in Rail, Infrastructure, Nuclear, Environmental all look terrific given the huge budgets and spending increases allocated to them over the coming long-term spending programmes.

The Chairman's outlook commentary says it all:

" Our strong trading performance and cash generation in the first half of the year, is reflective of the reliable long-term nature of the UK infrastructure markets in which we operate, a strategy reinforced in the Government's latest Budget when they committed to investing GBP640bn in infrastructure over the next 5 years."

https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Half-year-Report/82485858