image

The best stocks to buy since 1993

Latest issue now available

Renew Holdings - Eps accretive aquisition

September 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:
  • 127p
Renew has sold some surplus land for £11m and separately also acquired Lewis Civil Engineering for £6.7m (excluding cash acquired with the business). Cardiff-based Lewis supplies clean and wastewater services under long-term frameworks to both Wessex Water (65% of the work) and Welsh Water (the other 35%). In the year ended 31 July, it recorded sales of £24.5m and a £1.2m operating profit, so a margin of 5%. Net debt after the land sale and acquisition is just c.£2m.Numis forecast eps of 13.8p for the year ending this month (September) whilst next year sees a 12% upgrade to 16.5p. A soon-to-be-prospective PE of just 7.7 is cheap; Buy.   ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

LIMITED PERIOD OFFER

SUBSCRIBE TODAY AND SAVE £40 WITH OFFER CODE 40OFFSCSW

To access our archive of articles and to receive current issues you need to subscribe