Interims due in 9 days' time10 May 2021 12:24
The interims are only 9 days away now, on 18th May. We already know that H1 was strong, and given the confidence already expressed in at least achieving consenus expectations for the year I suspect the outlook will be nicely positive.
There's still plenty to go for here imo. The market looks forward, not back, and there's only just over a third of this year left before the new one starts on 1st October.Shore Capital were forecasting 47p eps for that year back in December, before the new acquisition which should contribute £5.5m or more next year. This should increase that forecast to say around 51p EPS. Then if RNWH do mildly better than forecasts this year, that forecast could increase to say 53p EPS. At 640p RNWH would therefore be on a P/E of only 12.1.
Numis already have a 715p target price, even before any upgrades or moving towards the next financial year.
Also, the market always loves recurring revenues and values them at a premium. I just wonder if there's a re-rating going on here due to this. Perhaps investors have woken up to the fact that whilst RNWH's revenues are not "recurring", they are - for the most part - repeatable, secure and regulated, under long-term frameworks and in largely high-growth sectors. And this will continue as it's the group's stated strategy.
Great to see excellent posts from oogle, Qd22 and Guitarsolo. Qd22, it was so long ago I can't remember! I first bought around 60p-70p, and I seem to remember that it looked like a high quality business which had simply gone through a bad spell and been over-punished as it still had decent earnings from those secure, long-term contracts.
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