Equity Analysis /
United Kingdom

GB : Renew Holdings - In line statement as inflation is being managed

    Alex O’Hanlon
    Alex O’Hanlon

    Analyst - Support Services

    Joe Brent
    Joe Brent

    Analyst - Support Services & Special Situations

    CGS-CIMB
    1 April 2022
    Published by

    The trading statement indicates trading is in line with expectations. Increasing input costs continue to be mitigated and we see signs that they are easing. We continue to expect a small net cash position of £12.6m for FY 22 on an IAS 17 basis. We expect the order book is broadly flat at the Q1 22 level of £742m at H1 22. At Engineering Services, there is continued positive momentum from the end of FY 21. At Specialist Building, the focus remains on managing risk. Strong tailwinds from the Autumn Budget and Integrated Rail Plan should filter down to Renew, despite its focus on maintenance. We maintain our SELL recommendation and TP of 600p, noting the relatively high valuation.