Interim Results

Renold PLC
11 November 2002


11 November 2002
                          RENOLD PLC

                     2002 Interim Results

Precision   engineering   group,   Renold   plc,   a    leading
international  manufacturer and supplier of  industrial  chains
and  related power transmission products, automotive cam  drive
systems  and  machine  tools and rotors,  today  announces  its
preliminary results for the half year to 28 September 2002.

Summary


- Substantial improvement in profitability, reflecting the
  benefit of the actions taken to refocus the Group's activities
  and reduce operating costs.

- Turnover at £91.3 million (2001: £97.6 million).

- Pre-exceptional profit before tax* rose 50% to £3.0
  million (2001: £2.0 million).

- Profit before tax was £1.8 million (2001: loss £5.1
  million).

- Adjusted earnings per share* increased 45% to 2.9 pence
  (2001: 2.0 pence).

- Operating cash inflow net of capital spending was £5.2
  million (2001: outflow £0.6 million).

- Gearing 32% compared with 42% a year ago and 35% at 30
  March.

- Interim dividend unchanged at 1.5 pence.

- Market share increases for the Industrial Chain and Power
  Transmission businesses in all regions, particularly in the US
  market, despite ongoing depressed market conditions.

- Automotive Systems saw sales rise 21% with order intake up
  35%; continuing trend towards chain driven cam drive systems in
  the automotive market.

* before goodwill amortisation and exceptional items

Outlook

Roger Leverton, Chairman of Renold plc, said:

'The   encouraging  improvement  in  the  first  half  performance
demonstrates the success of the actions which were taken last year
to  address  underperforming operations and refocus the  business.
The   Group's   core  activities,  industrial  chain   and   power
transmission  products,  and  chain driven  automotive  cam  drive
systems,  have enhanced their position in the market and are  well
placed for future development.

'In  the short term there is little sign of a return to growth  in
our  key  markets;  however  assuming  conditions  do  not  weaken
further, the second half should continue to benefit from the tight
control on costs and cash management which we have in place.'



                          RENOLD PLC
                   Chairman: Roger Leverton

              Interim Statement for the half year
                    ended 28 September 2002


Financial Summary
                                              First half year

                                          2002/2003  2001/2002
                                                 £m         £m


Turnover                                       91.3       97.6

Trading profit before goodwill amortisation
and trading exceptional items                   4.7        3.8

Profit before tax, goodwill amortisation
and exceptional items                           3.0        2.0

Profit/(loss) before tax                        1.8       (5.1)

Earnings per ordinary share
-  based on adjusted earnings                   2.9p       2.0p
-  based on reported earnings                   1.7p      (5.7)p

Interim dividend per ordinary share             1.5p       1.5p

Operating cash flow after capital spending      5.2       (0.6)

Gearing (net borrowings to shareholders'
funds)                                          32%        42%



                          RENOLD PLC

                      CHAIRMAN'S STATEMENT

I am pleased to report that the results for the half year to 28
September  2002 show a substantial improvement in profitability
from  the  first half of last year.  This improvement  reflects
the  benefit of the actions which have been taken over the last
year  to  refocus  the Group's activities and reduce  operating
costs,  and has been achieved despite continuing weak  economic
conditions in both Europe and North America.


Group results

Sales for the half year to 28 September 2002 were £91.3 million
(2001/2002:  £97.6  million), a reduction  of  6%  at  constant
exchange  rates.   Trading profit before goodwill  amortisation
and trading exceptional costs was £4.7 million (2001/2002: £3.8
million),  an increase of 24%.  Profit before tax  (and  before
goodwill amortisation and exceptional items) rose 50%  to  £3.0
million    (2001/2002:   £2.0   million).     Redundancy    and
restructuring costs of £0.5 million were charged in the  period
(2001/2002:  £1.8 million).  The tax charge in the  period  was
£0.6 million (2001/2002: tax credit £1.2 million).

Adjusted  earnings per share, before goodwill amortisation  and
exceptional items, were 2.9 pence (2001/2002: 2.0 pence).


Cash flow and borrowings

Operating cash flow net of capital spending was strong at  £5.2
million (2001/2002: £(0.6) million) reflecting continuing tight
control  on  working capital, further reductions  in  inventory
holdings  and lower capital spending.  This resulted in  a  net
cash  inflow  in the first half year of £0.7 million,  compared
with an £8.8 million outflow a year ago.  Net borrowings at  28
September were £25.7 million compared with £29.1 million at the
year end, as a result of the cash inflow in the period and of a
£2.7  million  reduction due to exchange translation.   Gearing
was  32%  of shareholders' funds compared with 35% at the  year
end, and 42% a year ago.


Dividend

The  Board  has declared an unchanged interim dividend  of  1.5
pence.   The  dividend  will be paid  on  31  January  2003  to
shareholders on the register on 10 January 2003.


Comment

Power Transmission - Industrial Chain and Power Transmission

The  performance of the industrial chain and power transmission
businesses   during  the  first  half  year  was   encouraging.
Although  sales levels were down on the same period last  year,
importantly they showed a marginal improvement over the  second
half,  reflecting an increasing market share for our core chain
activities in continuing depressed market conditions.

The  UK chain businesses continued to benefit from higher sales
from the Bredbury transmission chain factory into the US market
through Jeffrey Chain; domestic turnover was down however, with
the  conveyor  chain  factory  at  Burton-upon-Trent  adversely
affected by low demand for escalator chain products.

In   Germany  the  transmission  chain  factory  also  achieved
increased sales into the USA, more than offsetting the  effects
of  a  weaker  local  economy.   Whilst  in  European  markets,
including  France,  sales were below those  of  the  comparable
period  last  year,  they did not fall as  much  as  underlying
market demand, as the Group improved its competitive position.

Jeffrey  Chain  in the USA performed well in  the  first  half,
increasing  sales against last year, growing market share,  and
improving  profitability.   The Group's  other  North  American
businesses   saw   sales  decline  as  demand  from   equipment
manufacturers and, in particular, the steel industry was  weak;
however  profit  levels were maintained as a  result  of  early
action on the cost base.

Australasia  and  the  Far East grew sales,  and  profitability
substantially   improved   following   the   concentration   of
manufacturing activities in Australia on to one site.

The  UK  gear  and  coupling businesses  also  produced  better
results following the major restructuring programme carried out
last  year;  these  businesses  are  now  clearly  focused   on
supplying products which enhance the Group's power transmission
product  portfolio and leverage our customer relationships  and
global sales channels.

We  believe that, despite weak market conditions in Europe  and
North America, the work undertaken last year to revitalise  and
refocus  the  Group's industrial chain and  power  transmission
business is succeeding, and that we are winning a greater share
of the industrial chain market.

Automotive Systems

Sales  of  Automotive Systems rose 21% from the  previous  half
year, and new order intake rose by 35%.  This rapid growth rate
arose  from  the continuing trend towards chain, as opposed  to
belt,  driven cam drive systems in the automotive  market,  and
from  the  build  up  in  production of new  engine  programmes
supplied  by  the Calais site.  Investment in new equipment  to
accommodate  this  growth  is  continuing,  however  production
efficiencies  have not yet reached targeted  levels  and  as  a
result  planned  margins in this business  are  not  yet  being
realised.

The  Group's  technology in this field is recognised  as  world
class  by leading automotive manufacturers; further development
and  expansion of the Automotive Systems business is one of our
key focus areas.



Machine Tool and Rotor

The machine tool sector continued to suffer from a general lack
of  confidence in manufacturing industries and a consequent low
level of capital investment.

The  shortage  of  major project orders  affected  the  Holroyd
business particularly, and further cost reduction actions  were
necessary in the first half.  However, new orders were won  for
Edgetek  superabrasive machine tools which are now produced  at
the Holroyd UK factory at Milnrow.

The   downsized  Jones  &  Shipman  business  was  successfully
relocated  to a new smaller site in Leicester during the  first
half  year;  the  sale of the former site  is  now  under  way.
Orders for Jones & Shipman grinding machines have held up  well
over  the  period  and  the advantages of  sourcing  components
externally from low cost economies are now coming through.

The  Group's  machine  tool  activities  have  undergone  major
rationalisation  over the last twelve months.   Although  sales
were substantially lower than the first half of last year,  the
loss  in  this business was reduced.  The Holroyd and  Jones  &
Shipman  businesses now have a sound basis  from  which  to  go
forward.

Outlook

The  encouraging  improvement in  the  first  half  performance
demonstrates the success of the actions which were  taken  last
year  to  address  underperforming operations and  refocus  the
business.   The Group's core activities, industrial  chain  and
power  transmission products, and chain driven  automotive  cam
drive  systems, have enhanced their position in the market  and
are well placed for future development.

In the short term there is little sign of a return to growth in
our  key  markets; however assuming conditions  do  not  weaken
further,  the second half should continue to benefit  from  the
tight  control on costs and cash management which  we  have  in
place.

RELEASE OF INTERIM STATEMENT

The Interim Statement will be posted to shareholders on 15
November 2002.  Copies will be available for the public from
that date at the Company's registered office, Renold House,
Styal Road, Wythenshawe, Manchester M22 5WL.


For further information, please contact:

Renold plc
Ian Trotter, Chief Executive  :    11 November 2002 - 020 7950 2800
Tony Brown, Finance Director  :    Thereafter - 0161 498 4500

Issued by:

Weber Shandwick Square Mile
Ben Padovan/Stephanie Smart   :    Telephone - 020 7950 2800


This announcement and the Analysts' Presentation can also be
viewed on the website http://www.renold.com



Group Profit and Loss Account
for the half year ended 28 September 2002 (unaudited)

                                          First half year      Full year
                                      2002/2003   2001/2002    2001/2002
                                             £m          £m           £m

Turnover                                   91.3        97.6        190.2

Trading costs
-  normal operating costs                 (86.6)      (93.8)      (182.4)
-  goodwill amortisation                   (0.7)       (0.7)        (1.5)
-  exceptional redundancy and
   restructuring costs                     (0.5)       (1.8)        (3.9)
                                      -----------------------------------

                                          (87.8)      (96.3)      (187.8)
                                      -----------------------------------

Trading profit                              3.5         1.3          2.4
Exceptional loss on termination of
operation                                     -        (4.6)        (4.4)
Interest payable                           (1.7)       (1.8)        (3.6)
                                      -----------------------------------

Profit/(loss) on ordinary activities
before tax                                  1.8        (5.1)        (5.6)
                                      -----------------------------------

Tax:   UK                                   0.1         1.4          1.3
       Overseas                            (0.7)       (0.2)        (0.7)
                                      -----------------------------------

                                           (0.6)        1.2          0.6
                                      -----------------------------------

Profit/(loss) for the period                1.2        (3.9)        (5.0)
Dividends (including non-equity)           (1.1)       (1.1)        (3.2)
                                      -----------------------------------

Retained profit/(loss) for the period       0.1        (5.0)        (8.2)
                                      -----------------------------------

Adjusted earnings per ordinary share
-  based on reported earnings adjusted
   for goodwill amortisation and
   exceptional items after tax relief       2.9p        2.0p         3.8p
                                      -----------------------------------
Basic and diluted earnings per
ordinary share
-  based on reported earnings               1.7p       (5.7)p       (7.2)p
                                      -----------------------------------

Dividends per ordinary share                1.5p        1.5p         4.5p
                                      -----------------------------------



Group Balance Sheet
as at 28 September 2002 (unaudited)

                                            At            At           At
                                  28 September  29 September     30 March
                                          2002          2001         2002
                                            £m            £m           £m

Fixed assets
Intangible asset - goodwill               23.4          26.2         26.2
Tangible assets                           52.2          57.2         54.6
                                 ----------------------------------------
                                          75.6          83.4         80.8
                                 ----------------------------------------
Current assets
Stocks                                    44.9          51.9         46.9
Debtors                                   34.9          38.6         38.3
Cash and short term deposits               9.7           5.5          6.4
                                 ----------------------------------------
                                          89.5          96.0         91.6
                                 ----------------------------------------
Creditors - due within one year
Loans and overdrafts                      (5.9)        (16.4)        (9.9)
Other creditors                          (35.6)        (38.5)       (41.2)
                                 ----------------------------------------
                                         (41.5)        (54.9)       (51.1)
                                 ----------------------------------------
Net current assets                        48.0          41.1         40.5
                                 ----------------------------------------

Total assets less current liabilities    123.6         124.5        121.3


Creditors - due after one year
Loans                                    (29.5)        (25.0)       (25.6)
Other creditors                           (0.6)         (0.3)        (0.6)

Provisions for liabilities and
charges                                  (12.5)        (14.2)       (12.6)
                                 ----------------------------------------
Net assets                                81.0          85.0         82.5
                                 ----------------------------------------

Capital and reserves
(including non-equity interests)
Called up share capital                   17.9          17.9         17.9
Share premium                              6.0           6.0          6.0
Other reserves                            57.1          61.1         58.6
                                 ----------------------------------------
Shareholders' funds                       81.0          85.0         82.5
                                 ----------------------------------------


Summarised Group Cash Flow Statement
for the half year ended 28 September 2002 (unaudited)

                                          First half year       Full year
                                     2002/2003     2001/2002    2001/2002
                                            £m            £m           £m
Cash flow from operating activities
Trading profit                             3.5           1.3          2.4
Depreciation                               4.3           4.6          9.4
Goodwill amortisation                      0.7           0.7          1.5
(Increase)/decrease in working capital    (0.7)         (3.7)         4.9
Other                                     (0.1)          0.3         (1.7)
                                     ------------------------------------
Net cash inflow from operating
activities                                 7.7           3.2         16.5

Servicing of finance                      (1.3)         (1.7)        (2.9)
Taxation                                  (1.1)         (2.2)        (3.5)

Capital expenditure and financial
investment
-  purchase of tangible fixed assets      (2.5)         (3.8)        (6.0)
-  proceeds from disposal of fixed assets    -             -          0.5

Equity dividends paid                     (2.1)         (4.3)        (5.4)
                                     ------------------------------------
Cash inflow/(outflow) before use of
liquid resources and financing             0.7          (8.8)        (0.8)

Management of liquid resources
- transfers (to)/from short term
  deposits                                (0.8)          0.5          0.7

Financing
- increase/(decrease) in debt and
  lease financing                          6.2          (2.0)        (1.8)
                                     ------------------------------------
Increase/(decrease) in cash in the
period                                     6.1         (10.3)        (1.9)
                                     ------------------------------------


Reconciliation of net cash flow to
movement in net debt

Increase/(decrease) in cash in the
period                                     6.1         (10.3)        (1.9)

Cash flow from (increase)/decrease
in debt and lease financing               (6.2)          2.0          1.8
Cash flow from increase/(decrease)
in liquid resources                        0.8          (0.5)        (0.7)
                                     ------------------------------------
Change in net debt resulting from
cash flows                                 0.7          (8.8)        (0.8)
Exchange translation difference            2.7           1.1            -
                                     ------------------------------------

Movement in net debt in the period         3.4          (7.7)        (0.8)
Net debt at beginning of period          (29.1)        (28.3)       (28.3)
                                     ------------------------------------
Net debt at end of period                (25.7)        (36.0)       (29.1)
                                     ------------------------------------

Other Group Statements


Statement of total recognised gains and losses

                                         First half year        Full year
                                      2002/2003    2001/2002    2001/2002
                                             £m           £m           £m

Profit/(loss) for the period                1.2         (3.9)        (5.0)
Exchange translation differences on
foreign currency net investments           (1.6)        (0.9)        (0.2)
                                     ------------------------------------
Total recognised gains and losses          (0.4)        (4.8)        (5.2)
                                     ------------------------------------


Reconciliation of movements in shareholders' funds


                                          First half year        Full year
                                      2002/2003     2001/2002    2001/2002
                                             £m            £m           £m

Profit/(loss) for the period                1.2          (3.9)        (5.0)
Dividends                                  (1.1)         (1.1)        (3.2)
                                     -------------------------------------
Retained profit/(loss) for the period       0.1          (5.0)        (8.2)

Exchange translation differences on
foreign currency net investments           (1.6)         (0.9)        (0.2)
Goodwill resurrected on termination           -           1.6          1.6
                                     -------------------------------------

Net reduction in shareholders' funds       (1.5)         (4.3)        (6.8)
Opening shareholders' funds
(including non-equity of £0.6m)            82.5          89.3         89.3
                                     -------------------------------------
Closing shareholders' funds
(including non-equity of £0.6m)            81.0          85.0         82.5
                                     -------------------------------------


Notes to the Interim Statement

1.  Analysis of activities

    Activities classified by business segment:

                                            First half year      Full year
                                       2002/2003     2001/2002   2001/2002
                                              £m            £m          £m
    Turnover
    Power transmission                      82.3          85.9       168.0
    Machine tool and rotor                   9.9          12.5        23.6
                                       -----------------------------------
                                            92.2          98.4       191.6
    Less:  Inter activity sales             (0.9)         (0.8)       (1.4)
                                       -----------------------------------
                                            91.3          97.6       190.2
                                       -----------------------------------
    Trading Profit
    Power transmission                       5.7           5.5        10.8
    Machine tool and rotor                  (1.0)         (1.7)       (3.0)
                                       -----------------------------------
                                             4.7           3.8         7.8
    Less:
      Goodwill amortisation                 (0.7)         (0.7)       (1.5)
      Exceptional redundancy and
      restructuring costs                   (0.5)         (1.8)       (3.9)
                                       -----------------------------------
                                             3.5           1.3         2.4
                                       -----------------------------------

    Trading Assets
    Power transmission                      77.4          89.7        80.9
    Machine tool and rotor                  16.3          19.7        16.4
                                       -----------------------------------
                                            93.7         109.4        97.3
                                       -----------------------------------


   The exceptional redundancy and restructuring cost of £0.5 million is
   attributed £0.2 million (2001/2002: £0.7 million) to the power
   transmission segment and £0.3 million (2001/2002: £1.1 million) to
   the machine tool and rotor segment.  Of the total goodwill charge of
   £0.7 million, £0.6 million (2001/2002: £0.6 million) relates to the
   power transmission business and £0.1 million (2001/2002: £0.1
   million) to the machine tool and rotor business.

   The 'exceptional loss on termination of operation' included in the
   comparative profit and loss accounts represents the cost of closing
   the Manifold indexer business.


   Activities classified by                First half year       Full year
   geographical region of operation:  2002/2003      2001/2002   2001/2002
                                             £m             £m          £m
    Turnover
    United Kingdom                         34.4           39.9        74.2
    Germany                                15.4           15.4        29.0
    France                                 19.1           17.3        35.0
    Rest of Europe                          8.0            8.3        16.2
    North America                          26.5           28.5        56.4
    Other countries                         8.6            8.1        16.5
                                      ------------------------------------
                                          112.0          117.5       227.3
    Less: Intra Group sales               (20.7)         (19.9)      (37.1)
                                      ------------------------------------
                                           91.3           97.6       190.2
                                      ------------------------------------

   Turnover by geographical region includes intra group sales as
   follows:

    United Kingdom                         13.7           14.1        26.4
    Germany                                 5.4            4.3         7.9
    France                                  1.0            1.1         2.0

    Trading Profit
    United Kingdom                          0.1           (0.4)       (0.4)
    Germany                                 1.4            1.8         2.4
    France                                  0.8            0.9         1.7
    Rest of Europe                          0.5            0.5         1.1
    North America                           1.5            0.9         2.6
    Other countries                         0.4            0.1         0.4
                                      ------------------------------------
                                            4.7            3.8         7.8
    Less:
      Goodwill amortisation                (0.7)          (0.7)       (1.5)
      Exceptional redundancy and
      restructuring costs                  (0.5)          (1.8)       (3.9)
                                      ------------------------------------
                                            3.5            1.3         2.4
                                      ------------------------------------

   The exceptional redundancy and restructuring cost of £0.5 million
   has been incurred in relation to UK businesses (2001/2002: £1.4
   million UK businesses; £0.4 million North American businesses).

    Trading Assets
    United Kingdom                         43.5           51.3        43.7
    Germany                                12.1           13.7        11.5
    France                                 10.6           11.0        10.3
    Rest of Europe                          3.7            3.9         4.2
    North America                          18.1           23.5        21.6
    Other countries                         5.7            6.0         6.0
                                      ------------------------------------
                                           93.7          109.4        97.3
                                      ------------------------------------

   Trading assets comprise fixed assets, current assets less creditors
   but exclude goodwill, cash, borrowings, dividends, current and
   deferred corporate tax, finance lease obligations and provisions for
   liabilities and charges.

    Geographical analysis of external turnover by market area:
    United Kingdom                         13.2           15.2        29.1
    Germany                                12.3           12.7        25.3
    France                                  4.4            5.3        10.2
    Rest of Europe                         16.4           16.2        31.4
    North and South America                33.0           35.2        68.4
    Other countries                        12.0           13.0        25.8
                                      ------------------------------------
                                           91.3           97.6       190.2
                                      ------------------------------------

2.  Accounting policies and basis of preparation

    The interim accounts are unaudited and do not constitute statutory
   accounts.  They have been prepared under the historical cost
   convention (but include some past revaluations of properties and
   equipment) and in accordance with applicable accounting standards,
   using the accounting policies set out in the Annual Report for the
   year ended 30 March 2002.  There is no material difference between
   the result in the profit and loss account and the result on an
   unmodified historical cost basis.  The Board approved the Interim
   Statement on 11 November 2002.


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