REG - Renold PLC - AGM Trading Update

RenoldAnnouncement

06/09/2022 07:00

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RNS Number : 3472Y  Renold PLC  06 September 2022

6 September 2022

Renold plc

("Renold", the "Company" or the "Group")

 

AGM Trading Update

 

Renold, a leading international supplier of industrial chains and related
power transmission products, is pleased to provide a trading update covering
the five months ended 31 August 2022 (the "Period") ahead of the Company's
Annual General Meeting ("AGM") being held at 11 am today.

 

The Board is pleased to report that the strong momentum experienced in the
second half of the last financial year has continued into the new financial
year. Following the acquisition of Industrias YUK S.A. ("YUK"), announced on 4
August 2022, full year expectations were increased to reflect the immediate
earnings enhancement expected.

 

Sales revenue for the Period, at £93.0m, represents an increase of 18.7% on
the prior year equivalent period or an increase of 11.7% at constant exchange
rates. Post-acquisition, YUK contributed £0.8m to sales during the Period.

 

Order intake for the Period was £97.9m. Excluding the impact of the £11.0m
long term military contract announced in July 2021, this represents an
increase of 15.3% over the prior year equivalent

period or 7.6% at constant exchange rates. YUK contributed £0.8m to order
intake.

 

Order books as at 31 August 2022 of £97.3m again represent a record high for
the Group. YUK contributed £3.9m to the order book.

 

As a consequence of the acquisition of YUK for initial cash consideration of
€20.0m and increased inventory holdings, as part of contingency planning
against the potential impact of energy supply disruption in the second half of
the financial year, net debt at half year is projected to be approximately 1.5
times EBITDA, in line with previous guidance.

 

Whilst the Board is mindful that global markets continue to be uncertain, with
ongoing labour and energy cost inflation and supply chain disruption, the
Group's trading momentum continues to be positive. The Group has record order
books and the acquisition of YUK provides opportunities for synergies and
further growth.  Therefore, the Board expects adjusted operating profit for
the year to 31 March 2023 to be in line with recently increased market
expectations, following the announcement of the acquisition of YUK on 4 August
2022.

 

 

 ENQUIRIES:

 Renold plc                           IFC Advisory Limited
 Robert Purcell, Chief Executive      Tim Metcalfe
 Jim Haughey, Group Finance Director  Graham Herring

 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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