RE: Good trading update today3 Apr 2018 13:19
Nice review just out - quite long, so here's a couple of extracts:
Https://www.fool.co.uk/investing/2018/04/03/could-this-aim-growth-stock-help-you-become-an-isa-millionaire/
"Could this AIM growth stock help you become an ISA millionaire?
Rupert Hargreaves | Tuesday, 3rd April, 2018
Renew Holdings (LSE: RNWH) is, without a doubt, one of the AIM market�s best-performing stocks. Over the past two decades, this AIM growth champion has delivered a total return for investors of more than 3,600%, excluding dividends � that works out at around 22% per annum according to my calculations.
Renew has carved out a niche for itself delivering essential infrastructure maintenance tasks for regulated markets within the UK. As well as organic growth, the company has grown through acquisitions. For example, last November it acquired Giffen, a specialist mechanical, electrical and power services provider in the rail market.
And despite the headwinds buffeting the broader UK construction and engineering industry, it seems Renew�s specialist focus and reputation is helping the company stay ahead of its peers.....
......Cash-rich
The company is also benefitting from the fact that it has a small, positive net cash balance, although due to the timing of cash flows, management expects to report a �modest� net debt balance for the period ending 31 March. Still, unlike some of its peers in the construction and engineering sector, Renew is cash-rich, and conservative administration of the business has allowed it to maintain a healthy balance sheet while expanding through acquisitions.
Moreover, robust cash generation has allowed the company to triple its dividend distribution to investors over the past six years. Today, shares in Renew support a dividend yield of 2.6%, and the payout is covered 3.5 times by earnings per share. As earnings continue to rise, I believe the company�s dividend will head in the same direction.
So overall, as the next generation of management steps up, and the group builds on its existing strengths, organically and via acquisitions, I believe Renew will continue to produce market-beating returns for investors."