Last checked at 16 Oct 2020 07:00
Renold plc
("Renold", "the Company" or "the Group")
Trading Update
16 October 2020
Renold, a leading international supplier of industrial chains and related power transmission products, today issues a period end trading update covering the six months ended 30 September 2020 (the 'period') ahead of announcing interim results on 11 November 2020.
Renold delivered a resilient performance in the first half despite its markets being significantly impacted by the Covid-19 pandemic. The business remained profitable throughout the period and achieved a significant reduction in net debt of £10.2m to £26.4m (FY 2019/20: £36.6m), despite sales revenue down 17% on the prior year, at £82m.
The Group continued to benefit from a combination of improvement in the strategic cost base and the productivity gains made in recent years, together with tactical short term cost saving measures. These enabled the Group to achieve a positive operating margin for the period.
Reflecting the impact of global shutdowns and lower levels of demand across a number of the Group's markets, order intake in the period was down 21% year on year to £76m. However, trends through the period end suggest that order intake should continue to slowly improve, albeit at levels below the prior year in the near term.
Whilst considerable uncertainty remains, Renold benefits from significant geographic, customer and sector diversification. The Group's ongoing focus on cost control, operational efficiency, productivity, and cash management is helping to offset the subdued demand and should enable the Group to make continued strategic progress in the second half.
ENQUIRIES:
Renold plc | 0161 498 4500 |
Robert Purcell, Chief Executive | |
Jim Haughey, Group Finance Director | |
Peel Hunt LLP | 020 7418 8900 |
Mike Bell | |
Ed Allsopp | |
Instinctif Partners | 020 7457 2020 |
Mark Garraway | |
Rosie Driscoll |
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
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.