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Renew Holdings - WH Ireland forecasts eps of 27.5p for the year

June 2016

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:
  • 353p
Renew has reported its H1 with sales up 5% to £265.1m and a pretax profit up 9% to £10.3m. Adjusted eps were up 9% to 13.3p. Net debt of £4.2m was down from £4.8m at year end but this is mainly because H1 tends to bear the brunt of the final dividend payout as well as insurance premiums (alone £3m) and consequently this weights the working capital into H2. H2 also has longer working days and consequently brokers are looking for year end cash to top £6m, assuming that Renew doesn’t make another acquisition during H2. I suspect it will.Renew’s engineering side saw sales up 6% to £221m. Long term subscribers will recall there were two problematic elements last year - telecoms and g ...

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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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