REG - Renold PLC - Trading Update

RenoldAnnouncement

08/02/2023 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:20230208:nRSH2281Pa&default-theme=true

RNS Number : 2281P  Renold PLC  08 February 2023

8 February 2023

 

 

Renold plc

("Renold" or the "Group")

 

Trading Update

 

Renold, a leading international supplier of industrial chains and related
power transmission products, today issues a trading update covering the 10
month period ended 31 January 2023.

 

Trading update

 

The Group has traded strongly since announcing its interim results in November
2022, with order intake running ahead of sales. Supported by the positive
market outlook, the Board now anticipates that underlying operating profit for
the full year will be above current market forecasts.

 

Turnover for the 10 months to 31 January 2023 totalled £199.0m (10 months to
31 January 2022: £158.7m), 25.4% higher than the prior year comparator on a
reported basis, and 17.3% at constant exchange rates.

 

Group order intake for the 10 month period was £216.5m, representing a
year-on-year increase of 19.2% on a reported basis, and 11.6% at constant
exchange rates. Excluding the impact of long term military contracts, order
intake increased by 21.8% or 13.7% at constant exchange rates, with North
America being particularly strong, although ordering patterns have started to
normalise in Europe and India from the elevated levels experienced earlier in
the financial year. The current order book of £104.1m is a further record
high for the Group (30 September 2022: £99.0m) providing good visibility
beyond the financial year end.

 

The integration of Industrias YUK S.A. continues in line with management's
expectations at the time of the acquisition, with early progress made in
realising identified cost synergies. Net debt at the financial year end is
still expected to be comfortably below 1.5x EBITDA.

 

Given the continued sales growth, a strong orderbook, benefits of the cost
reduction and efficiency programmes, and the successful recovery of cost
inflation on raw material and energy, the Board is confident the current
trading momentum will deliver revenues and underlying operating profit for the
full year in excess of market expectations.

 

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 (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  TSTFLFLAFVIDIIV