Renew Holdings - formerly Montpellier - big sales, big profits

Renew’s (RNWH; 71p) shareholder base has been transformed over past months with the three Swedish shareholders reducing combined interests from almost 40% to under 8%, yet the shares have moved to new highs. Its activities fall into two business streams: specialist engineering, which comprises land remediation and nuclear decomissioning work, has high margins of 5%, accounts for around 14% of sales and will be grown by acquisitions going forward. Specialist building, which is construction and refurbishment, has finally sorted its problems in the north east unit and is targeted to double margins over three years to 2%. Brewin Dolphin forecasts eps of 9p in the current year. Cash is forecast to balloon to £20m by September as surplus land is sold.