REG - Renold PLC - Trading update for the year ended 31 March 2024

RenoldAnnouncement

15/04/2024 07:00

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RNS Number : 5140K  Renold PLC  15 April 2024

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 expectations(1),
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:

 

 Renold plc                           IFC Advisory Limited
 Robert Purcell, Chief Executive      Tim Metcalfe
 Jim Haughey, Group Finance Director  Graham Herring
                                      renold@investor-focus.co.uk (mailto:renold@investor-focus.co.uk)

 0161 498 4500                        020 3934 6630

 

 

 Nominated Adviser and Joint Broker  Joint Broker
 Peel Hunt LLP                       FinnCap Limited
 Mike Bell                           Ed Frisby / Tim Harper (Corporate Finance)
 Ed Allsopp                          Andrew Burdis / Harriet Ward (ECM)

 020 7418 8900                       020 7220 0500

 

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 (http://www.renold.com)

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