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17 Apr 2012 07:00
Renold plc
("Renold" or "the Company")
Trading Update
Renold, a leading international supplier of industrial chains and related power transmission products, will announce results for the year ended 31 March 2012 on 29th May 2012 and, accordingly, today issues a trading update.
The encouraging progress reported at the interim results continued in the second half with full year adjusted earnings doubled on the previous year, in line with expectations. Operating margins and profit improved further during the second half of the current year in both the Torque Transmission and Chain divisions. Underlying sales growth finished the year 9% ahead of the prior year with Torque Transmission growth ahead of Chain.
The second half also saw good operating cash flows driven by better operating results and reductions in working capital. As a result, gearing as a ratio of net debt to EBITDA has improved to around 1.2x compared to the 1.7x last year with the overall level of net debt in line with expectations.
Growth moderated in the second half primarily in Europe where ongoing economic uncertainty has resulted in sales volatility and where Swiss manufacturing output has been reduced by the strength of the Swiss franc. This slowdown was more than offset by the Group's Rest of World sales, which continued to grow and were above double digit levels in the Americas, India and South East Asia.
While European growth is likely to be moderated by the ongoing economic uncertainty, good sales growth is still expected to continue in both divisions in the rest of the world.
17 April 2012
ENQUIRIES:
Renold plc | 0161 498 4500 |
Bob Davies, Chief Executive | |
Brian Tenner, Finance Director | |
College Hill | 020 7457 2020 |
Mark Garraway | |
Helen Tarbet |
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
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