REG - Renold PLC - Trading Update & Notice of Results

RenoldAnnouncement

15/04/2025 07:02

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RNS Number : 9771E  Renold PLC  15 April 2025

15 April 2025

 

 

Renold plc

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

 

Trading update for the year ended 31 March 2025

 

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 2025 ("FY25" or the "Year"), ahead of the announcement of
the Company's preliminary results for the Year.

 

Trading update

 

The Board is pleased to report that the Group maintained positive momentum
through the final quarter and consequently expects to report adjusted
operating profit and EPS for FY25 ahead of current market expectations(1), a
third consecutive year of record performance

 

Revenue for the Year was approximately £245.1m, a year-on-year increase of
3.8% at constant exchange rates, or a 1.5% increase on a reported basis, when
currency headwinds are taken into account. Adjusted operating profit for the
Year is expected to have increased by over 6%, when compared to the prior year
(FY24: £29.7m), with the adjusted operating margin improving towards 13%
(FY24: 12.3%). Progress continues to be made with the Group's productivity and
efficiency programmes, which are driving sustainable margin and profit
increases along with further customer service improvements.

 

Order intake for the Year at £250.2m was ahead the £227.5m recorded in the
prior year.  The closing order book at 31 March 2025 of £83.3m was in line
with FY24, and was above the half year position (30 September 2024: £80.8m).

 

Cash conversion remained robust, and careful management of working capital has
resulted in a year end net debt position of £44.8m (31 March 2024: £24.9m
and 30 September 2024: £42.2m), an increase of £2.6m over September 2024,
which is largely attributable to the purchase of land and buildings at the
Group's Cardiff operations (replacing a lease). The increase in H1 was driven
by the purchase of the MAC Chain business.

 

International trade policies

 

The Board is closely following the fast-evolving tariff backdrop, as
negotiations between nations continue.  Given the volatile nature of the
situation, and with potential timing for implementation of tariffs uncertain,
the impact to Renold is currently difficult to predict.

 

Renold benefits from a global manufacturing footprint providing operational
flexibility in delivery to its customers, which positions the business well to
navigate through the ongoing uncertainty.  The Company enjoys long standing
relationships centred around both its quality proposition and the unique
features designed into its products, and we would expect that any incremental
tariff related costs would be borne by its customers.

 

Notice of results

 

The Group expects to announce its results for FY25 on 2 July 2025.

 

 

Note: All figures used in this announcement relating to the financial year
ended 31 March 2025 remain subject to audit.

 

(1) Company compiled analyst consensus for FY25, prior to this announcement
was for revenue of £251.9m, and for underlying operating profit of £31.2m.

 

 

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                       Cavendish Capital Markets Limited
 Mike Bell                           Ed Frisby (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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