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Renew Holdings

June 2021

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:
  • 643p
Renew has reported an excellent H1 to end March (against comparatives that were pre-Covid), with sales up 17% to £366m, pretax profit up 19% to £18.1m and eps up 14% at 22.9p. Adjusted operating profit margin was 6% (down from 6.4%) mainly due to a mix change - with a higher proportion of speciality building work, which is only 2% margin.   Helped by six months from Carnell (versus three) Engineering Services grew sales 12% to £327m (+6.6% organic) with operating profit up from £20.5m to £22m. This was driven pretty much singlehandedly by a strong period in Rail. Divisional work tends to be underpinned by frameworks but H1 saw weakness in Nuclear where all non essential work w ...

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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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