Last checked at 23 Aug 2021 07:00
23 August 2021
Renold plc
("Renold", the "Company" or the "Group")
AGM Trading Update
Renold, a leading international supplier of industrial chains and related power transmission products, issues a trading update covering the four months ended 31 July 2021 (the "period") ahead of the Company's Annual General Meeting ("AGM") being held at 10 am today.
The Board is pleased to report that the strong momentum experienced in the fourth quarter of the last financial year has been maintained in the new financial year, resulting in the continued recovery of both revenues and order intake.
Order intake for the period was £79.7m, an increase of 61.3% over the prior year equivalent period or 69.3% at constant exchange rates. Excluding the recently announced £11.0m long term military contract, order intake for the period increased by 39.1% or 46.7% at constant exchange rates. Current order books at £70.5m represent a record high for the Group.
Sales revenue for the period, at £62.5m, represents an increase of 13.6% on the prior year equivalent period or 19.9% at constant exchange rates.
Net debt remained stable during the period and totalled £18.5m as at 31 July 2021, despite an increase in working capital due to the improved activity levels and much lengthened supply chains, compared to £18.4m on 31 March 2021.
Renold benefits from significant geographic, customer and sector diversification. Consequently, and despite uncertainty caused by considerable raw material and transport cost inflation and continuing supply chain disruption, the Board now expects adjusted operating profit for both the first half and full year of FY22 to be higher than both market expectations and the equivalent prior year period.
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 United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK 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 | 0161 498 4500 |
Robert Purcell, Chief Executive | |
Jim Haughey, Group Finance Director | |
Peel Hunt LLP | 020 7418 8900 |
Mike Bell | |
Ed Allsopp | |
IFC Advisory Limited | 020 3934 6630 |
Tim Metcalfe Graham Herring | renold@investor-focus.co.uk |
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