REG - Renold PLC - Trading Update and Notice of Results

RenoldAnnouncement

14/04/2022 07:16

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RNS Number : 3429I  Renold PLC  14 April 2022

14 April 2022

 

 

Renold plc

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

 

Trading Update for the year ended 31 March 2022

 

Notice of Results

 

Renold, a leading international supplier of industrial chains and related
power transmission products, today issues a trading update covering the year
ended 31 March 2022 ("FY22"), ahead of the announcement of the preliminary
results for the year expected to be announced on 13 July 2022.

 

Trading update

 

The Board is pleased to report that the strong momentum in order intake and
turnover experienced in the first half of the year continued, delivering
revenue for the full year of £195.0m, a year-on-year increase of 18.0% on a
reported basis, and 21.7% at constant exchange rates.

 

The level of the sales to Russia and Ukraine during FY22 were insignificant at
c. 0.5% of Group turnover.

 

Group order intake during FY22 was £223.7m. This represents a year-on-year
increase of 31.6% on a reported basis and 35.6% at constant exchange rates.
Excluding the recently announced £11.0m long term military contract, order
intake for the period increased by 25.2% or 29.2% at constant exchange rates.
The current order book of £84.1m is a record high for the Group (31 March
2021: £53.6m).

 

As a result of the stronger sales, benefits of cost reduction and efficiency
programmes, and the successful implementation of price increases running ahead
of raw material and energy cost increases, the Board is now expecting
underlying trading profit for FY22 to be materially ahead of the previous
upwardly revised expectations.

 

In addition, there are a number of material one off, non-recurring items which
will, subject to audit, contribute to an increase in full year statutory
operating profits, of c.£4.0m. This includes gains from new lease
arrangements on sub-let properties and US PPP Covid loan relief, of which
£1.2m was previously recognised and disclosed in the half year results.

 

Careful management of working capital resulted in net debt at the end of the
FY22 of £13.8m (30 September 2021: £13.9m), a reduction of £4.6m during the
year.

 

The Group has strengthened its financial position significantly over the last
two years, providing funding capacity to support its strategic growth
objectives. These include both further capability investments as well as
value-accretive acquisitions, with a developing pipeline of opportunities.

 

Notice of results

 

The Group expects to announce its results for FY22 on 13 July 2022.

 

 

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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