Interim Management Statement

26 Jul 2007 07:14

Renold PLC26 July 2007 Renold plc("Renold" or the "Company") Interim Management Statement Renold is pleased to present its first Interim Management Statement for theperiod from 1 April 2007, ahead of today's AGM. Trading is in line with the Board's expectations and the Company's PACEinitiatives are progressing well. Overall orders and sales for the Company forthe first quarter are ahead of the same period last year. Notwithstanding this,in the USA our chain business has experienced some slowdown and de-stockingwhich, coupled with the weaker US Dollar, will suppress returns from thismarket. Operationally, the early indications following last month's acquisition of a 90%interest in HangZhou ShanShui in China are encouraging. The integration of thisimportant strategic acquisition is proceeding to plan with revised operating andmanagement procedures being rapidly adopted. The purchase will boost margins toa run rate of greater than 10% by 2008/9 and underpins the execution of our PACEprogramme. It also provides a major growth opportunity in the domestic Chinesemarket and into other parts of South East Asia. On 26 June 2007 the Company announced that it had received planning consent formixed use development of its Burton upon Trent factory site. The Companyanticipates the disposal of the site will complete during this calendar year,generating £6.4m of cash before expenses which will be used to pay down Groupdebt. During the period, the actuarial valuation of one of the Company's definedbenefit schemes was concluded. This reported a surplus of £1.9m at 5 April 2006compared to a deficit of £2.1m reported at 5 April 2003. As a consequence ofthis surplus, annual deficit reduction payments of £0.2m have now ceased. TheCompany's two larger defined benefit schemes, for which actuarial valuations areongoing, have a triennial valuation date of 5 April 2007. There have been no other significant changes in the position of the Company overthe period since the publication of its report and accounts for the year ended31 March 2007. Overall, the Board continues to be satisfied with the progress being made. Theinterim results will be announced in November at which point the Board expectsto be able to outline the next stage of Renold's strategic development. 26July 2007 Enquiries: Renold plc 0161 498 4500Bob Davies: Chief ExecutivePeter Bream: Finance Director College Hill 020 7457 2020Matthew GregorowskiNicholas Potter NOTE FOR EDITORS Renold is a global leader in the manufacture of industrial chains and alsomanufactures a range of gears and couplings which are sold throughout the worldto a broad range of original equipment manufacturers and distributors. Itsproducts are used in a wide variety of industries including manufacturing,transportation, energy, steel, and mining. Renold has a well deserved reputationfor quality that is recognised worldwide. Renold has 13 manufacturing plants throughout the world and employs 2,500 staff.It is currently expanding its geographical footprint by increasing itsmanufacturing presence in "low cost countries". Further information about Renold can be found on the website: www.renold.com This information is provided by RNS The company news service from the London Stock Exchange