MIDAS SHARE TIPS UPDATE: Renew has rocketed greater than tenfold – and there needs to be extra to come back

The Furness Line between Barrow-in-Furness and Lancaster was rendered impassable after Storm Bert battered the country last weekend. Tracks were flooded and services suspended, to the frustration of thousands of passengers. Renew Holdings was called in to clear up the mess.

Within hours, a specialist team was on hand, using sophisticated kit to pump 450 gallons of water a second from the line. A vacuum pump was driven down the track and excavators put in place to re-engineer the line, even as the rain continued to fall.

Fixing problems is just one branch of Renew’s business. The group also works proactively across Britain, upgrading and maintaining railways, roads, energy and water services. Business is brisk. UK infrastructure was once the envy of the world. No longer.

By early next year, 70 per cent of main roads, motorways and bridges will be more than 45 years old and in urgent need of repair. Around £45billion has been earmarked for rail lines over the next five years, almost £90billion of investment is expected on the waterfront, and billions more will be needed to re-engineer electricity networks as we move to wind, solar and nuclear power.

Renew is a key supplier to all these industries. Last week, chief executive Paul Scott unveiled a 19 per cent increase in revenues to £1billion for the year to September 30. Pre-tax profits rose 11 per cent to £70million and the dividend was 5.6 per cent ahead at 19p.

City analysts expect more of the same for at least the next three years. With 5,200 staff and an energetic in-house training programme, Renew is known for its skilled workforce and efficient service. Scott is a qualified engineer himself, starting out at Renew more than 20 years ago and working his way up to the top position in 2016.

Cleaning up: Renew helped repair rail lines hit by Storm Bert

Growth has come organically and through acquisition, with four deals completed since last autumn, taking the firm into new areas, such as wind turbine repair and maintenance.

Companies are swiftly integrated into the group, retaining a degree of autonomy but collaborating with other parts of the business as well.

The approach has delivered consistent expansion for the past 15 years, with profits up 80 per cent in the past five years alone and dividends more than doubling in that time.

Midas verdict: Midas first recommended Renew in 2012, when the shares were just 75p. By 2020, the stock had soared to £5. Now they are £10.79 and there should be more to come. UK infrastructure needs a revamp and Renew is working on some of the biggest projects in the country. Existing shareholders should hang on to their stock. Long-term investors might also take a close look at this one.

Traded on: Aim Ticker: RNWH Contact: renewholdings.com