AGM Statement

19 Sep 2006 12:09

Renold PLC19 September 2006 RENOLD plc At today's Annual General Meeting of Renold plc, the chairman, Roger Leverton,made the following statement : - "Although the results for 2005/06 were released only eight weeks ago, it isopportune for me to further report to you progress on a number of key issues. As previously announced, the sale of the Automotive business to Schaeffler KGwas completed on 3rd August, with the proceeds used to reduce the level of Groupnet debt. Under the terms of the agreement, there is an adjustment to theconsideration in respect of the value of net working capital at completion; thisadjustment to be agreed during October. We have recently been informed of aquality problem relating to deliveries of chains for one engine system made bythe Automotive Division of Brampton Renold SA, France, in the period prior tothe disposal. This issue is currently under investigation, and at this stage itis too early to quantify what costs might arise. Further information will beprovided as it becomes available. With regard to the divestment of the Machine Tool businesses, the negotiationswith Venture Private Equity are continuing, although they have not beenconcluded as quickly as was anticipated. When the Preliminary Results were announced in July, I indicated that theGroup's continuing Industrial Power Transmission businesses were well positionedto show further progress in the current year as a result of a tighter focus andreduced cost base. I am pleased to say that the results of the first five monthshave shown a continuation of the substantially improved performance seen in thesecond half of last year. Steel prices have remained relatively stable so far,although there is some indication of upward pressure in the second half. Orderintake over recent months has been encouraging, with the order book balance atthe end of August up 14% from the beginning of the year, and cumulative ordersfor the first five months up 16% over the previous year. Mark Smith, Senior Non-Executive Director, and myself, have extended our term ofoffice beyond that originally planned in order to see the Company through thedifficult time of restructuring and refocusing the business. Following the successful divestment of the Automotive business and with clearfinancial recovery established in the Company's continuing businesses, it isappropriate for both of us to step down from the Board in the near future.Discussions in relation to this matter are taking place with major shareholdersand a separate statement will be issued shortly naming successors." Enquiries: Bob Davies, Chief Executive Tel: 0161 498 4500Peter Bream, Finance Director Tel: 0161 498 4500 This information is provided by RNS The company news service from the London Stock Exchange