Strategic Update

RNS Number : 5349S

Renold PLC

22 December 2016

 

Renold plc

("Renold", or "the Group")

Sale of Australian site and confirmation of plans to close the Torque Transmission site in Halifax, UK

Renold, a leading international supplier of industrial chains and related power transmission products, announces the sale of its site in Mulgrave, Australia and confirmation of plans to close the Torque Transmission site in Halifax, UK.

Mulgrave site sale

Renold is pleased to announce that it has exchanged contracts for the sale of its site in Mulgrave, a suburb of Melbourne, Australia to Makhmalbaf Pty Ltd for a consideration of A$12.5 million (£7.5 million), net of expenses and a contracted economic market rent for the next three years.  

The Mulgrave property is currently partially utilised as the Group's Australian head office and manufacturing site with almost 50% of the plot unoccupied. Following the sale, the Group will work to secure a smaller alternate site to which it will transfer operations.

The consideration will be satisfied in cash upon completion which is expected to be not later than three months from today.  Net disposal proceeds will be used to further the Step 2020 Strategic Plan.

As at 30 September 2016, the site had a net book value of £4.6 million and the disposal is expected to give rise to a net profit (after associated costs and tax) on sale of approximately £2.2 million.

Halifax collective consultation

Renold is also able to announce that collective consultation on proposals to consolidate the manufacturing and associated processes of the Couplings business located in Halifax, UK into the Cardiff, UK site is concluded. Consequently it is with regret that the Company confirms that it intends to implement the proposals.

Work will now begin to enable the transfer of all UK Couplings manufacturing and most associated processes into Cardiff and a corresponding winding down of activities at the Halifax site leading to its eventual closure and the sale of the freehold site.  The transfer of activity should be largely complete by the end of the financial year.

ENQUIRIES:

Renold plc	0161 498 4500
Robert Purcell, Chief Executive
Arden Partners	020 7614 5917
Chris Hardie
Instinctif Partners	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 the website at: www.renold.com

 

END

 

 

MSCBLBDDLUDBGLB