Pre-close Trading Update

RNS Number : 8968E

Renold PLC

14 April 2011

 



Renold plc

("Renold" or "the Company")

Pre-close Trading Update

Renold, a leading international supplier of industrial chains and related power transmission products, will be announcing results for the year ended 31 March 2011 on 31^st May 2011 and, accordingly, is today issuing a pre-close trading update.

The continuation of previously announced growth trends has resulted in profit ahead of the Board's expectations.

Underlying sales growth momentum continued in the second half.  Full year sales finished 19% ahead of the prior year at constant exchange rates.  Order intake was ahead by 23%.  Underlying order books closed the year 13% ahead.

Full year Chain division sales finished 26% ahead following first half growth of 31%.  All Chain regions saw double digit sales growth with China, the Americas and Europe being particularly strong.

Torque transmission grew 11% in the second half, reversing the fall in the first half that followed the completion of a multi-year contract.

The second half also saw a return to cash generation driven by improved operating results and improvements in working capital management.  As a result, net debt has improved by almost 20% since September 2010 even after allowing for UK pension deficit payments in the third quarter of £2.4m.

Opening order books give robust visibility for the first quarter and absolute growth is expected to continue even as rates of growth moderate.

14 April 2011

ENQUIRIES:

Renold plc	0161 498 4500
Bob Davies, Chief Executive
Brian Tenner, Finance Director
College Hill	020 7457 2020
Mark Garraway
Helen Tarbet

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 their website at: www.renold.com

 

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