Last checked at 21 Jul 2015 07:00
Renold plc
("Renold", "the Company" or "the Group")
AGM Statement
Renold, a leading international supplier of industrial chains and related power transmission products, is today issuing, ahead of its Annual General Meeting to be held at 11:00am, the following statement in respect of the first quarter of the financial year ending 31 March 2016.
The Group continues to make adjusted operating profit and margin gains as a result of the implementation of the rolling programme of self-help measures in its STEP 2020 Strategic Plan. This was achieved despite the headwinds and volatility in the end markets of both divisions which saw underlying (1) sales for the Group as a whole down 4.1% or 1.1% excluding the major non-recurring Swiss project win in the prior year.
The Chain division delivered a growth in underlying sales in the first quarter of 1.0%, which excludes the impact of the Swiss project noted above (3.0% fall when included). The rest of Europe, the Americas and Australasia all contributed to the modest growth. Underlying sales in Torque Transmission fell by 7.1% with most units seeing a reduction.
Gains in margins have more than offset the lower underlying revenues and progress continues to be made on a number of STEP 2020 improvement initiatives. Management continues to implement measures which are expected to drive future sales growth including, expanding our footprint in attractive high growth territories, investing in new capabilities to enhance our service offering, and improving our commercial focus. As a result, the outlook for full year adjusted operating profit remains in line with the Board's expectations.
Robert Purcell, Chief Executive of Renold, said:
"We continue to demonstrate the robustness of our business model driven by our STEP 2020 Strategic Plan. Further margin gains have been delivered in the first quarter despite ongoing challenging conditions in many of our end markets. We remain well placed to take advantage of further self-help initiatives and opportunities to grow the business."
21 July 2015
(1) The use of "underlying" excludes the impact of changes in foreign exchange rates.
ENQUIRIES:
Renold plc | 0161 498 4500 |
Robert Purcell, Chief Executive | |
Brian Tenner, Finance Director | |
Arden Partners | 020 7614 5917 |
Chris Hardie | |
Instinctif Partners | 020 7457 2020 |
Mark Garraway | |
Helen Tarbet |
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