Renold Regulatory News (RNO)

Renold plc

("Renold" or "the Company")

New Bank Facilities and Trading Update

Renold, a leading international supplier of industrial chains and related power transmission products, announces the completion of the refinancing of its principal Bank Facilities and a trading update on the first half of the current financial year.

New Banking Facilities

Renold has completed a new banking facility agreement for a four year period maturing in October 2016. The new facilities comprise a £41m Multi-Currency Revolving Credit Facility (MRCF), and an additional £8m of ancillary facilities. These facilities have been provided by a banking group comprised of Lloyds TSB Bank plc and Svenska Handelsbanken AB. The MRCF is fully committed until maturity.

The principal covenants are the Net Debt / EBITDA ratio, which has been set at a maximum of 2.50 times until maturity, and EBITDA / Interest cover which is required to be greater than 4.00 times until maturity.

Renold's most recent statutory accounts showed a Net Debt / EBITDA ratio of 1.6 times and the Board anticipates this ratio will improve further by the end of the current financial year. The new facilities will bring an immediate reduction in borrowing margins of 125 - 150 basis points with scope for further savings as leverage reduces. This reduction in the margin on the new facility, combined with the benefits of rationalising our banking arrangements, is expected to give rise to annual savings of approximately £0.5m.

Trading Update

In its Interim Management Statement of 2 August 2012, the Company commented on weaker demand, especially in many European markets, as a result of ongoing macro economic volatility. Whilst the Americas continued to show year on year growth in the six month period to 30 September 2012, the overall weakness in demand has continued. This has resulted in first half sales down approximately 6% compared to the same period in the prior year. Adjusted operating profit in the first half of the financial year is therefore expected to be substantially below the result in the first half of the prior year.

In response to the weaker sales demand, the Company has taken additional steps to reduce its cost base. The net impact of weaker demand offset by cost reductions has led the Board to conclude that adjusted operating profit for the current financial year, ending 31 March 2013, will be significantly below current market expectations and last year's result.

Despite lower sales, the forecast cash flow for the year is unchanged due to further improvement in working capital ratios and careful management of other cash flows. The cash outflow in the first half of the current year is approximately £5.5m better than the cash outflow in the same period in the prior year with net debt also materially improved.

Bob Davies, Chief Executive of Renold, commented:

"We are pleased to have successfully replaced our bank facilities on these attractive terms. The four year period, the competitive margins and the available headroom within the covenants provide strong support for the Group and demonstrate that our new banking partners share our confidence in the future development of Renold."

The Company will announce its Interim Results for the half year ended 30 September 2012 on Tuesday 20 November 2012.

4 October 2012

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 their website at: www.renold.com