15 April 2024
Renold plc
("Renold", the "Company" or the "Group")
Trading update for the year
ended 31 March 2024
Notice of
Results
Renold, a leading international
supplier of industrial chains and related power transmission
products, is pleased to provide a trading update for the year ended
31 March 2024 ("FY24" or the "Year"), ahead of the announcement of
the Company's preliminary results for the Year.
Trading update
The strong momentum in the Group's
performance in the first half of the Year continued throughout the
second half of FY24. The results for the full year are now
expected to be materially ahead of current market
expectations1, with adjusted operating profit
approximately 20% higher than the prior year, driven by a further
improvement in margin.
Revenue for the year was £241.5m, a
year-on-year increase of 0.9% at constant exchange rates, or a 2.3%
reduction when currency headwinds are taken into account. Progress
continues to be made with the Group's productivity and efficiency
programmes, which are driving sustainable margin and profit
improvement.
Order intake in the second half
increased over the first six months by 7.5%, or 8.2% at constant
exchange rates. The closing order book at 31 March 2024 of
£83.6m remains close to record levels and was in line with the half
year position (30 September 2023: £83.6m).
Strong cash conversion, and careful
management of working capital has resulted in a year end net debt
position of £24.9m (31 March 2023: £29.8m and 30 September 2023:
£28.3m), a reduction of £4.9m over FY23 after taking account of
increased efficiency related capital expenditure and shares
purchased to ensure no dilution from LTIP awards.
The Group continues to strengthen
its financial position, which provides funding capacity to support
its strategic growth objectives. These include both investment to
further enhance operational capabilities as well as value-accretive
acquisitions, from a developing pipeline of
opportunities.
Notice of results
The Group expects to announce its
results for FY24 on 17 July 2024.
Note: All figures used in this announcement relating to the
financial year ended 31 March 2024 remain subject to
audit.
1 Company compiled analyst
consensus for FY24 is for revenue of £244.3m, and for underlying
operating profit of £26.5m.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014), as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior
to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations.
ENQUIRIES:
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Renold plc
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IFC
Advisory Limited
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Robert Purcell, Chief
Executive
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Tim Metcalfe
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Jim Haughey, Group Finance
Director
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Graham Herring
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renold@investor-focus.co.uk
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0161
498 4500
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020
3934 6630
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Nominated Adviser and Joint Broker
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Joint Broker
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Peel
Hunt LLP
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FinnCap Limited
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Mike Bell
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Ed Frisby / Tim Harper (Corporate
Finance)
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Ed Allsopp
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Andrew Burdis / Harriet Ward
(ECM)
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020
7418 8900
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020
7220 0500
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NOTES FOR EDITORS
Renold is a global leader in the
manufacture of industrial chains and also manufactures a range of
torque transmission products which are sold throughout the world to
a broad range of original equipment manufacturers and distributors.
The Company has a well-deserved reputation for quality that is
recognised worldwide. Its products are used in a wide variety of
industries including manufacturing, transportation, energy, steel
and mining.
Further information about Renold can
be found on the website at: www.renold.com