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8 Feb 2023 07:00
8 February 2023
Renold plc
("Renold" or the "Group")
Trading Update
Renold, a leading international supplier of industrial chains and related power transmission products, today issues a trading update covering the 10 month period ended 31 January 2023.
Trading update
The Group has traded strongly since announcing its interim results in November 2022, with order intake running ahead of sales. Supported by the positive market outlook, the Board now anticipates that underlying operating profit for the full year will be above current market forecasts.
Turnover for the 10 months to 31 January 2023 totalled £199.0m (10 months to 31 January 2022: £158.7m), 25.4% higher than the prior year comparator on a reported basis, and 17.3% at constant exchange rates.
Group order intake for the 10 month period was £216.5m, representing a year-on-year increase of 19.2% on a reported basis, and 11.6% at constant exchange rates. Excluding the impact of long term military contracts, order intake increased by 21.8% or 13.7% at constant exchange rates, with North America being particularly strong, although ordering patterns have started to normalise in Europe and India from the elevated levels experienced earlier in the financial year. The current order book of £104.1m is a further record high for the Group (30 September 2022: £99.0m) providing good visibility beyond the financial year end.
The integration of Industrias YUK S.A. continues in line with management's expectations at the time of the acquisition, with early progress made in realising identified cost synergies. Net debt at the financial year end is still expected to be comfortably below 1.5x EBITDA.
Given the continued sales growth, a strong orderbook, benefits of the cost reduction and efficiency programmes, and the successful recovery of cost inflation on raw material and energy, the Board is confident the current trading momentum will deliver revenues and underlying operating profit for the full year in excess of market expectations.
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 (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
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