REG - Renold PLC - Trading Update and Notice of Results

RenoldAnnouncement

17/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230417:nRSQ3312Wa&default-theme=true

RNS Number : 3312W  Renold PLC  17 April 2023

17 April 2023

 

 

Renold plc

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

 

Trading update for the year ended 31 March 2023

 

Notice of Results

 

Renold, a leading international supplier of industrial chains and related
power transmission products, is pleased to provide a trading update covering
the year ended 31 March 2023 ("FY23" or the "Year"), ahead of the announcement
of the Company's preliminary results for the Year.

 

Trading update

 

The strong momentum in the Company's performance experienced in the first nine
months of the Year continued through the final quarter.  Revenue for the Year
was £247.1m, a year-on-year increase of 26.6% on a reported basis and 18.8%
at constant exchange rates. Excluding the impact of the Industrias YUK S.A.
("YUK") acquisition, completed in August 2022, turnover increased by 21.1%, or
13.4% at constant exchange rates.

 

Group order intake during FY23 was £260.3m. This represents a year-on-year
increase of 16.3% on a reported basis and 9.1% at constant exchange rates.
Excluding the recently announced £8.9m long term military contract, and the
£11.0m military contract announced in the prior year, order intake for the
Year increased by 18.1%, or 10.6% at constant exchange rates. YUK contributed
£12.7m (or 4.9%) of Group order intake. The order book finished FY23 at
£99.5m (31 March 2022: £84.1m).

 

As a result of the stronger sales, the impact of the YUK acquisition, benefits
of cost reduction and efficiency programmes, and the successful implementation
of inflation cost recovery programmes, the Board now expects underlying
trading profit and margin for FY23 to be materially ahead of the previous
upwardly revised market expectations(1).

 

Despite the impact of cost inflation, careful management of working capital
has resulted in net debt at the end of FY23 of £29.8m (30 September 2022:
£34.0m), a reduction of £4.2m in H2.

 

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

 

Note: All figures used in this announcement relating to the financial year
ended 31 March 2023 remain subject to audit.

(1) Company compiled market consensus for 2023 revenue, underlying operating
profit, and underlying PBT is £238.3m, £19.8m and £14.3m respectively.

 

Notice of results

 

The Group expects to announce its results for FY23 on 12 July 2023.

 

 

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)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBLGDSISBDGXS