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Renew - Full year results in the bag

June 2012

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:
  • 75p
Renew’s interims to 31 March were a record with growth in revenue, profit and operating margin. Sales were up 18% to £183.7m and adjusted profit by 95% to £4.4m. Adjusted eps was up 75% to 5.5p. Net debt at the period end was £6.9m.The factor that was behind these results is, of course, a full six month inclusion from the Amco acquisition against just one month in H1 11. That contribution meant Renew’s specialist engineering side reported sales and profit up 58% and 82% to £107m and £4.5m respectively before central costs. Without Amco, the company tells us the division would otherwise have grown 4% organically. As Amco operated with margins almost double that of Renew, divisional margins improved by 80 basis points to 4. ...

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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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