Last checked at 17 Apr 2023 07:00
17 April 2023
Renold plc
("Renold", the "Company" or the "Group")
Trading update for the year ended 31 March 2023
Notice of Results
Renold, a leading international supplier of industrial chains and related power transmission products, is pleased to provide a trading update covering the year ended 31 March 2023 ("FY23" or the "Year"), ahead of the announcement of the Company's preliminary results for the Year.
Trading update
The strong momentum in the Company's performance experienced in the first nine months of the Year continued through the final quarter. Revenue for the Year was £247.1m, a year-on-year increase of 26.6% on a reported basis and 18.8% at constant exchange rates. Excluding the impact of the Industrias YUK S.A. ("YUK") acquisition, completed in August 2022, turnover increased by 21.1%, or 13.4% at constant exchange rates.
Group order intake during FY23 was £260.3m. This represents a year-on-year increase of 16.3% on a reported basis and 9.1% at constant exchange rates. Excluding the recently announced £8.9m long term military contract, and the £11.0m military contract announced in the prior year, order intake for the Year increased by 18.1%, or 10.6% at constant exchange rates. YUK contributed £12.7m (or 4.9%) of Group order intake. The order book finished FY23 at £99.5m (31 March 2022: £84.1m).
As a result of the stronger sales, the impact of the YUK acquisition, benefits of cost reduction and efficiency programmes, and the successful implementation of inflation cost recovery programmes, the Board now expects underlying trading profit and margin for FY23 to be materially ahead of the previous upwardly revised market expectations1.
Despite the impact of cost inflation, careful management of working capital has resulted in net debt at the end of FY23 of £29.8m (30 September 2022: £34.0m), a reduction of £4.2m in H2.
The Group has strengthened its financial position significantly over the last three years, providing funding capacity to support its strategic growth objectives. These include both investment in further operational capabilities as well as value-accretive acquisitions, with a developing pipeline of opportunities.
Note: All figures used in this announcement relating to the financial year ended 31 March 2023 remain subject to audit.
1 Company compiled market consensus for 2023 revenue, underlying operating profit, and underlying PBT is £238.3m, £19.8m and £14.3m respectively.
Notice of results
The Group expects to announce its results for FY23 on 12 July 2023.
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 domestic law by virtue of the European Union (Withdrawal) Act 2018) ("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 | IFC Advisory Limited |
Robert Purcell, Chief Executive | Tim Metcalfe |
Jim Haughey, Group Finance Director | Graham Herring |
renold@investor-focus.co.uk | |
0161 498 4500 | 020 3934 6630 |
Nominated Adviser and Joint Broker | Joint Broker |
Peel Hunt LLP | FinnCap Limited |
Mike Bell | Ed Frisby / Tim Harper (Corporate Finance) |
Ed Allsopp | Andrew Burdis / Harriet Ward (ECM) |
| |
020 7418 8900
| 020 7220 0500 |
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