| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 425.53 | -55 |
| Intrinsic value (DCF) | 403.77 | -57 |
| Graham-Dodd Method | 0.45 | -100 |
| Graham Formula | 8.99 | -99 |
Renew Holdings plc (LSE: RNWH.L) is a leading UK-based engineering services and specialist building contractor, operating in critical infrastructure sectors including energy, environmental, rail, and nuclear decommissioning. Founded in 1786 and headquartered in Leeds, the company provides a comprehensive suite of services such as asset maintenance, civil and electrical engineering, geotechnical works, and environmental remediation. Renew Holdings plays a pivotal role in the UK's infrastructure resilience, supporting projects like flood risk management, water rehabilitation, and telecom installations (3G/4G/5G). With a strong focus on sustainability and innovation, the company serves both public and private sectors, including nuclear decontamination and science facility construction. Its long-standing expertise and diversified service portfolio position it as a key player in the UK's industrial and environmental infrastructure development.
Renew Holdings presents a stable investment opportunity with a market cap of ~£642M (GBp) and a beta of 0.783, indicating lower volatility relative to the market. The company reported £1.01B in revenue and £41.6M net income (FY 2024), with a diluted EPS of 53p and a dividend yield supported by a £6.33 per share payout. Strong operating cash flow (£44.4M) and a healthy cash position (£80.2M) against manageable debt (£76.6M) suggest financial resilience. Its focus on UK infrastructure—a sector with steady government and private investment—offsets risks from cyclical demand. However, exposure to regulatory changes in nuclear and environmental sectors warrants monitoring.
Renew Holdings competes in the fragmented UK engineering services market by leveraging its niche expertise in high-barrier sectors like nuclear decommissioning and rail infrastructure. Its competitive edge stems from: (1) Long-term contracts with government agencies (e.g., Network Rail, Environment Agency), ensuring revenue visibility; (2) Integrated service offerings (design, maintenance, remediation) that reduce client procurement complexity; and (3) Specialized capabilities in regulated sectors (e.g., nuclear) where few rivals operate. Unlike larger peers pursuing global projects, Renew focuses on UK-centric, high-margin maintenance and renewal work, avoiding risky mega-projects. However, it faces pricing pressure from tier-1 contractors (e.g., Balfour Beatty) and regional specialists. Its scale limits ability to compete for larger international tenders but provides agility in local project execution. The company’s environmental remediation services align with UK net-zero targets, differentiating it from pure-play construction firms.