Last checked at 1 Feb 2010 07:00
Renold plc
("Renold", "the Company" or "the Group")
Interim Management Statement
Renold, a leading international supplier of industrial chains and related power transmission products, is today issuing its interim management statement covering the period from 1 October 2009 to the current date.
On 17 November 2009 the Company announced its results for the half year ended 30 September 2009 and commented that customer destocking was coming to an end in parts of Europe and was expected to finish in the USA by the first quarter of 2010/11. Destocking has been a significant element of the sales shortfall compared to last year accounting for approximately 50% of the reduction in sales.
Since that date, trading has been in line with the Board's expectations. We continue to see increasing stabilisation and some early evidence of recovery and the Group is maintaining its position of managing both costs and cash to ensure that the business remains competitive in the prevailing environment.
On 17 November 2009 the Company announced that it had raised £26.9 million after expenses through the completion of a firm placing and placing and open offer of 142,500,000 new ordinary shares at 20p per share. The proceeds of this fundraising have been used to reduce bank debt through the repayment and cancellation of the £11 million multicurrency term-loan with RBS/Fortis. The remainder of the proceeds has been used to repay, but not cancel, borrowings under revolving and overdraft facilities.
This additional funding headroom has enabled the Company to invest in operational improvements with short-term payback and the more robust balance sheet positions the Company for expected industry consolidation opportunities.
There have been no other significant changes in the position of the Company over the period since the publication in November 2009 of its half year statement for the six month period ended 30 September 2009.
1 February 2010
ENQUIRIES:
| Renold plc | 0161 498 4500 |
| Bob Davies, Chief Executive |
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| Peter Bream, Finance Director |
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| College Hill | 020 7457 2020 |
| Mark Garraway |
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| Adam Aljewicz |
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NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial chains and also manufactures a range of gears and couplings 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 recognized worldwide. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining. The Company's expertise and products are currently being used in the Thames Barrier and Big Ben in London.
Renold has 14 manufacturing plants throughout the world, with the bulk of its manufacturing now located in "low cost countries" such as India and China. Further information about Renold can be found on their website at: www.renold.com