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Renew Holdings - Another AMCO-type deal sought

June 2013

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:
  • 106p
More share price highs following Renew's H1 results. Sales were down from £182m to £152m   but pretax profit was up by 7% to £4.8m for eps of 6.2p. Net debt was  significantly down to £3.2m.  The debt taken on when it bought AMCO two years ago has been falling by £1.25m each  quarter so it looks like it will be getting debt free before long: AMCO proved a fantastic deal as it has effectively paid out cash for itself - and speaking to chief executive Brian May and finance director John Samuel they note the “quality and pricing for potential deals†has improved.Engineering Services remains the driver with H1 revenues up 5% to £110m and operating profit up 7% to £4.9m, with operating margins of 4.4% ...

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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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