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Renew Holdings - Shares become 17-bagger

July 2024

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:
  • 1094p
The shares rocketed past £10 following Renew’s interims and a strategic acquisition that sparked widespread market excitement. The interims themselves revealed a 17% increase in sales to £553m, with 16.9% organic growth far exceeding expectations, fuelled by robust expansion in the Rail and Water sectors. Pretax profit and EPS surged 15% to £30.3m and 31.3p, respectively. The order book swelled by 7% year-on-year to £831m, while net cash stood strong at £42.5m. Operating margin in engineering services was up 0.1% to 6.9% - that’s more than 3x the margin achieved at Galliford Try (GFRD; 243p), which shows just how efficient Renew’s self delivery model is. Just days later, Renew bought Excalon for an initial £22m (equivalent to just ...

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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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