Last checked at 11 Oct 2018 07:00
Renold plc
("Renold", "the Company" or "the Group")
Period End Trading Update
11 October 2018
Renold, a leading international supplier of industrial chains and related power transmission products, today issues a period end trading update covering the six months ending 30 September 2018 (the 'period') ahead of announcing interim results on 14 November 2018.
Trading in the period has been in line with expectations. Group revenue in the period grew by 4.5% and, on an underlying1 basis, by 6.4% compared to the first half of the prior year. Order intake in the period grew by 1.7% on an underlying1 basis or 7.4% adjusted to exclude the large multi-year UK Couplings order from the prior year. Orders were 3.4% ahead of revenue for the period.
The Chain division is making good progress in recovering from the specific issues which affected performance in the prior year. The rate of raw material price increases has moderated in most geographies, and we have had success in passing these through to customers, resulting in margin recovery. Output from our Einbeck, Germany facility has been stronger in the period and is supporting improvement in levels of customer service.
As expected, revenue for Torque Transmission division reflected strong growth in our US markets. This growth was partially off-set by lower revenue in UK Couplings as a result of the phasing of the large multi-year contract.
The Group remains on track to deliver a result for the full year in line with the Board's expectations.
Robert Purcell, Chief Executive of Renold, said:
"It is pleasing to see that we have made good progress in addressing the short-term issues encountered during the previous year. The strategic plan continues to improve the underlying business and the impact is starting to become visible in the trading results."
(1) The use of "underlying" excludes the impact of changes in foreign exchange rates by retranslating the prior year comparative figures to the current year exchange rate.
ENQUIRIES:
Renold plc | 0161 498 4500 |
Robert Purcell, Chief Executive |
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Ian Scapens, Group Finance Director |
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Peel Hunt LLP | 020 7418 8900 |
Mike Bell |
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Sam Cann |
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Instinctif Partners | 020 7457 2020 |
Mark Garraway |
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Rosie Driscoll |
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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