Last checked at 22 Jul 2014 07:00
Renold plc
("Renold", "the Company" or "the Group")
AGM Statement and Interim Management Statement
Renold, a leading international supplier of industrial chains and related power transmission products, today issues its interim management statement covering the period from 1 April 2014 to the current date.
Strategic update
The final significant steps of the Bredbury closure project were completed during the first quarter as planned. The annualised savings arising from the project of £3.2m are in line with expectations and delivery has commenced slightly earlier than expected. Completion of the project will now allow more management time to be focussed on other continuous improvement initiatives to lower the Group's cost base further.
Financial update
Underlying (1) group revenue in the first quarter was 0.9% above the same period in the prior year. This reflects an improving trend relative to the 2.3% underlying revenue contraction in the first half of the prior year and the 0.8% contraction in the second half. The growth in the first quarter of the current year was driven by a combination of absolute growth in the Chain division and a further reduction in the rate of decline in Torque Transmission.
The combination of the early delivery of savings from the Bredbury factory closure, and other ongoing incremental actions to reduce the Group's breakeven point, have resulted in the Board's current expectations for the full year adjusted operating profit being above the current range of market forecasts, despite the adverse impact of foreign exchange movements.
There have been no other significant changes in the position of the Company over the period since the publication of the full year results for the year ended 31 March 2014.
Robert Purcell, Chief Executive of Renold, said:
"By completing the Bredbury closure project ahead of schedule we have accelerated the delivery of the resulting savings and also freed up management time to focus on new continuous improvement initiatives for the business. Self-help measures remain our priority and we are well placed to deliver further ongoing improvements in operational efficiencies and business processes which will generate additional reductions in our cost base."
22 July 2014
(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