Last checked at 30 Jul 2008 07:00
Renold plc
("Renold" or the "Company")
Interim Management Statement
Renold is pleased to present its Interim Management Statement for the period from 1 April 2008, ahead of today's AGM.
Trading is progressing in line with the Board's expectations with overall orders and sales for the Company for the first quarter ahead of the same period last year. At the end of June 2008 the order book is 32% ahead of the June 2007 position.
The Company continues to experience ongoing higher input costs, predominantly steel, energy and freight. However, both contribution and operating margins for the first quarter are ahead of the same period last year due to pricing actions and ongoing efficiency improvements.
The Company now secures more than 50% of its sales from the maintenance repair and overhaul markets which provides a relatively non-cyclical and defensive revenue stream. Renold has also benefited from an increasing exposure to developing markets and a diverse, global, multi-sector mix of customers and products.
The acquisition of the 75% interest in the industrial chain business of the Indian quoted group, L.G. Balakrishnan & Bros Ltd (LGB), is reaching a conclusion. Following the LGB shareholders' approval of the transaction, the acquisition is expected to complete in August, together with the previously announced placing of new ordinary shares raising £5.3 million pounds.
LGB is the market leader for the production and distribution of industrial chains in India and this business will provide Renold with an established manufacturing base and sales distribution network. This network will enable Renold to promote its existing product range into India's rapidly growing market place. In addition, the business, based in Tamil Nadu, with 500 employees manufactures products not currently in our portfolio which can be sold through Renold's existing international sales operations. This acquisition follows on from last year's successful acquisition and integration of Renold Hangzhou in China.
There have been no other significant changes in the position of the Company over the period since the publication of its report and accounts for the year ended 31 March 2008.
30 July 2008
Enquiries:
Renold plc 0161 498 4500
Bob Davies: Chief Executive
Peter Bream: Finance Director
College Hill 020 7457 2020
Nicholas Potter
Adam Aljewicz
NOTE 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. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel, and mining. Renold has a well deserved reputation for quality that is recognised worldwide.
Following the acquisition in India, Renold will have 15 manufacturing plants throughout the world and employ 3,000 staff.
Further information about Renold can be found on the website: www.renold.com