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Renew - Cash of £28m

December 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RNWH
  • Price:
  • 51p
Results were in line with reduced expectations set in last month's trading update when Renew said a slowdown in housing starts had impacted its land remediation business. But even so, the final results for the year to 30 September were ahead of last year. Sales were up 12% to £391m and pretax profit was up 28% to £9.5m. Earnings were however behind forecast due to pension related tax adjustments at 11.9p (23% tax). Renew's declared strategy is to focus on two distinct business streams - specialist engineering and specialist building. The specialist engineering arm supplies technical services for land remediation, nuclear decommissioning and contracting in the water sector; all three see work coming from long-term frameworks. Havin ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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