(Alliance News) - Renold PLC shares jumped on Monday, after it said it expects annual results to be ahead of previously upwardly revised market expectations.
Renold is a Derby, England-based supplier of industrial chains and power transmission products. Its shares were up 16% to 28.90 pence each in London on Monday morning.
The company said that "strong momentum" experienced in the first nine months of the year continued through the final quarter ended March 31. Based on this, Renold now expects underlying trading profit and margin for financial 2023 to be materially ahead of the previous upwardly revised market expectations.
Revenue for financial 2023 is expected to be GBP247.1 million, a 27% increase.
Company compiled market consensus for annual revenue, underlying operating profit, and underlying pretax profit is GBP238.3 million, GBP19.8 million and GBP14.3 million, respectively.
Order intake is expected to come in at GBP260.3 million, an annual jump of 16%. Of this, Industrias YUK SA contributed GBP12.7 million to the order intake, about 4.9%.
Renold bought the Valencia-based manufacturer and distributor of conveyor chain and ancillary products in August 2022.
"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," Renold said.
Renold said it expects to announce its results for financial 2023 on July 12.
By Sophie Rose; Alliance News reporter
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Renold (RNO)