Member Info for rivaldo

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.”

An anodyne RNS headline today, confirming the 9 months' results will be on 13th November - except that there's also the extremely reassuring comment that:

"The Directors remain confident that the Company continues to trade at least in line with current market expectations for the full year"

Note the "at least" in line with expectations.

So once again CNIC has confirmed it's trading well. Perhaps this time - on a P/E of around 7 - the market will respond:

Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Name-Change-Notice-of-Re/92244176

WH Ireland today retain their 9.5p fair value target price for a change.

Their forecasts are for €38.5m revenues this year (up from €31.2m last year).

EBITDA is set to rise to €4.7m this year (from last year's €2.7m) and then €5m next year. The latter equates to €1.5m PBT and €0.2 EPS.

They conclude:

"Forecasts / Valuation

Having recently adjusted our forecasts to account for lower cashew production in FY23E and FY24E, today’s update on the cashew project is in line with our updated expectations and we leave our forecasts unchanged this morning. Although DKL may not see the full benefit in FY24E, the cashew operation, once at full production, will add a step change in profitability and cash generation for the group. With proactive steps being taken to bring this project to its full potential, we see our 9.5p fair value as well underpinned."

Remember that Singer's are forecasting 0.1645p EPS for the year which has already started on 1st October.

That's a current year P/E of only 9.7.

Last year's year end trading update was on 26th October, so not long to wait. The outlook from the interims was confident in achieving expectations, as "All three divisions have traded well in the period and this momentum has continued into the second half".

In case anyone missed last night's late RNS, VLE made a substantial £116,000 buyback of 10,000 shares:

Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/92229973

The September CPO production update is excellent, with CPO sales up 154% and PKO sales up 98% on last year.

This is set to hugely outweigh the year on year CPO price decrease and lower extraction rates.

In summary, H2 is set to "materially outperform" last year.

Cashew production in Q3 is up 134.5% on Q2 (from a standing start!), but as usual there are glitches in the Italian machinery's performance which DKL are having to work around - I hope the manufacturers are going to compensate DKL in some way. Cashews are getting there - slowly - but with some stuttering.

It's a biggie :o))

The doubling in value to a whopping £3.8m over 3 years makes this "the Group's largest single annual contract to date".

A great validation of REAT's abilities and strategy:

Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Contract-Win/92232138

From Citywire today:

Https://citywire.com/funds-insider/news/expert-view-imperial-direct-line-capital-unite-and-ramsdens/a2427505

"Allianz manager Knight drills down into Capital prospects

Capital Ltd (CAPD), previously known as Capital Drilling, is an example of a small-cap stock being hit disproportionately hard by negative news, says Allianz Global Investors’ Richard Knight.

The Citywire Elite Companies A-rated mining services company has a focus on the gold mining industry in Africa and is a top 10 holding in Knight’s Allianz UK Listed Opportunities fund where it makes up 2.4% of the £197m portfolio.

‘The shares have performed poorly following a trading update in July, though the update was only slightly soft on revenues and led to very minor downgrades in profit expectations for the year, though management guidance was maintained,’ Knight said.

He added that the ‘more salient news’ was the ongoing longer-term contract wins in mining services in new metals and in new geographies that ‘significantly de-risk the business operations’. This, along with growth in materials testing means it ‘warrants a much higher valuation than the group average’."

Long Path Partners continue to buy - they now own 15.01%, or 6.298m shares. They last had 5.79m shares per their prior holdings RNS, so they've added roughly 0.5m shares now:

Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-Holdings-in-Company/92212019

The Amati AIM VCT have today issued their interims to 31st July, and they disclose they made two investments in the period into companies already quoted on AIM. One of these was a £2million investment into ITX as follows:

Https://www.londonstockexchange.com/news-article/AMAT/half-year-report/16155489

"Investments through secondary placings in existing AIM companies involved Itaconix and Cordel. The former is a US developer of a plant-based polymer used to decarbonise everyday consumer products. The company has been on AIM since 2012, but only achieved commercial breakthrough in 2020 with a bio-polymer ingredient for dishwasher detergent. Close to 150 consumer products now use Itaconix ingredients, involving major retailers such as Amazon, Walmart, Aldi and Tesco. With opportunities to grow into personal hygiene and beauty products, the company is forecast to breakeven in its current financial year."

The major shareholder list as at Oct '23 now looks extremely impressive for a micro cap - the list below now represents almost 70% of the shares in issue.

And Onward Opportunities PLC also own £800,000 of REAT shares, i.e 4.6% of the current m/cap but haven't issued a holdings RNS presumably for technical reasons (do they have to declare when they get to 5%?), taking the major shareholder list up to almost 75%. So REAT is pretty tightly held now:

Shareholder Number Ordinary shares %

Octopus Investments Limited 163,344,667 15.45%

Canaccord Genuity Wealth Management 103,333,333 9.77%

Dowgate Wealth 99,426,699 9.40%

Harwood Capital LLP 95,750,000 9.05%

Helium Rising Stars 95,329,362 9.01%

Premier Miton Investors 75,114,393 7.10%

Hargreaves Lansdown Asset Mgt (Bristol) 49,851,226 4.71%

A J Bell Securities 33,689,126 3.19%

The Onward Opportunities Fund's September results presentation is available. They own £800,000 of REAT stock, and slide 13 is specifically on REAT as follows:

"Case Study - React Specialist Cleaning Plc

React is a B2B specialist cleaning group in the UK, with 3 complementary divisions across reactive cleaning, specialist glass/cladding and public sector facilities

Valuation – an 80% contracted (1-5yr) revenue business growing at 17-25% per annum purchased by ONWD at a P/E of 6.5x-8.5x

Timing – New management team have transformed the group, reached a scale of cash conversion and operational gearing

Catalysts – Ongoing contract win momentum from new head of business development, completion of deferred payments unlocks FCF for growth CAPEX and returns to shareholders"

Https://onwardopportunities.co.uk/wp-content/uploads/2023/09/Onward-Opportunities-Half-Year-Update-September-2023.pdf

Certainly not much stock around - ticking up again on just a £3k buy today after further nice rises in the last few days.

With 3.7p EPS forecast the P/E at 33p is still rather low......

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."

Good to see the lunch of an Alternative Energy Solutions division and a "major" contract win helping to improve EPC ratings which are going to be so important for all commercial buildings - this dated 25th September:

Https://www.tclarke.co.uk/tclarke-alternative-energy-solutions-launches-with-major-win/

"TClarke Alternative Energy Solutions launches with major win

TClarke is launching Alternative Energy Solutions to help building owners improve EPC ratings for old buildings, meet climate targets, Improve their carbon footprint and critically, make newly available technologies a practical option.

The launch is also marked by the announcement of a major Alternative Energy contract win and one of the very first commercial building energy upgrades on this scale – helping 30 Fenchurch Street substantially improve its EPC rating, within an holistic programme of design works and technology installation.

Achieving major design stage improvements

The project was taken from a stage 2 through to a stage 4a design and during this process the original plant concept was reviewed and re-designed with performance improvements and enhancements.

This was achieved with the implementation of new simultaneous four pipe heating and cooling Air Source Heat Pumps (ASHPs), along with additional air cooled chillers to be provided to the roof area. This enabled the original existing water cooled chillers in the basement and the cooling towers on the roof to be decommissioned and removed.

These new capital plant improvements enabled the property EPC rating to improve – all with zero impact to the tenant’s business operations.

Actively engaging manufacturers to ensure optimal equipment selection

Manufacturers were engaged to ensure equipment selection was robust and satisfied the design criteria, this was confirmed through our TClarke design team. A key factor was the COP and EER of the new plant. Refrigerant and compressor selection were also important to ensuring that optimum performance was obtained.

Throughout the plant replacement phase, we engaged with the client to demonstrate added value. This was shown with HV & LV electrical works, where existing aged equipment was removed and multiple LV distribution boards were amalgamated into single new larger distribution boards.

Optimised logistics plan for City location

30 Fenchurch Street is in the heart of the City; as such the plant logistics are critical to project delivery. These were analysed and modelled to reduce the total number of lifting events and provide a structured plan to meet the programme and maintain the client requirements."

Sounds good:

"the ideal rugged handheld device to take warehouse and logistics operations up a gear"

Https://www.touchstar.co.uk/blog/ts8200-scanning

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

Allenby Capital update today:

Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2023/10/Allenby-Capital-TMT-Update-02.10.23-SKL.L-MWE.L-CPX.L-SEEN.L-.pdf?c3865=on

"MTI Wireless Ltd* (MWE.L, 44.0p/£38.9m)

Update: 5G backhaul contract wins (27.09.23)

• Antenna division has received orders from the Indian divisions of two large OEMs worth c. $0.6m for its 5G backhaul antenna solutions. These are existing customers, and the antennas are to be delivered by the end of 2023.

• MTI has been chosen to replace the antennas of a competitor that failed to meet the end customers' requirements, reflecting MTI's functional advantages. As such, this represents a potentially significant opportunity to capture a larger share of the customers' spend and the wider Indian 5G backhaul market.

• MTI reports demand for 5G backhaul solutions from other territories and the company offers the widest range of products and works closely with the leading OEMs.

• No change to forecasts or 90p/share fair value.

Allenby Capital comment: India has been identified by MTI as the most significantly initial market for its 5G backhaul solutions as network operators look to roll out 5G cellular networks. Given the volume of antennas involved, OEMs will typically look to source products from multiple suppliers.

The fact that two existing OEM customers have opted to replace a competitor product with MTI represents a significant endorsement of MTI's product set. As such, MTI is gaining greater market share with these customers and there is potential to gain additional share with these and other OEMs and in other territories. MTI already supplies seven of the top ten OEMs with its technologies. No change to forecasts but this serves to underpin further our growth assumptions for FY23 and going forward."

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."

Lovely obituary for Jonathan Lander:

Https://www.heraldscotland.com/business_hq/23824219.investor-philanthropist-founded-turnaround-investor-volvere/

Brief extract:

"With an initial capital of around £3million, Volvere would buy businesses in distress and turn them around.

The Lander brothers had a real passion for people-businesses, where Jonathan’s incisive mind could unnerve and inspire staff in equal measure. The successes over the next 20 years would see more than £34million returned to shareholders. Tears were often shed when Volvere sold an investment and staff knew a special period of ownership was coming to an end."