Trading Update and Notice of Results

RNS Number : 3429I

Renold PLC

14 April 2022

 

14 April 2022

Renold plc

("Renold", the "Company" or the "Group")

Trading Update for the year ended 31 March 2022

Notice of Results

Renold, a leading international supplier of industrial chains and related power transmission products, today issues a trading update covering the year ended 31 March 2022 ("FY22"), ahead of the announcement of the preliminary results for the year expected to be announced on 13 July 2022.

Trading update

The Board is pleased to report that the strong momentum in order intake and turnover experienced in the first half of the year continued, delivering revenue for the full year of £195.0m, a year-on-year increase of 18.0% on a reported basis, and 21.7% at constant exchange rates.

The level of the sales to Russia and Ukraine during FY22 were insignificant at c. 0.5% of Group turnover.

Group order intake during FY22 was £223.7m. This represents a year-on-year increase of 31.6% on a reported basis and 35.6% at constant exchange rates. Excluding the recently announced £11.0m long term military contract, order intake for the period increased by 25.2% or 29.2% at constant exchange rates.The current order book of £84.1m is a record high for the Group (31 March 2021: £53.6m).

As a result of the stronger sales, benefits of cost reduction and efficiency programmes, and the successful implementation of price increases running ahead of raw material and energy cost increases, the Board is now expecting underlying trading profit for FY22 to be materially ahead of the previous upwardly revised expectations.

In addition, there are a number of material one off, non-recurring items which will, subject to audit, contribute to an increase in full year statutory operating profits, of c.£4.0m. This includes gains from new lease arrangements on sub-let properties and US PPP Covid loan relief, of which £1.2m was previously recognised and disclosed in the half year results.

Careful management of working capital resulted in net debt at the end of the FY22 of £13.8m (30 September 2021: £13.9m), a reduction of £4.6m during the year.

The Group has strengthened its financial position significantly over the last two years, providing funding capacity to support its strategic growth objectives. These include both further capability investments as well as value-accretive acquisitions, with a developing pipeline of opportunities.

Notice of results

The Group expects to announce its results for FY22 on 13 July 2022.

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

ENQUIRIES:

Renold plc	IFC Advisory Limited
Robert Purcell, Chief Executive	Tim Metcalfe
Jim Haughey, Group Finance Director	Graham Herring
	[e-mail]
0161 498 4500	020 3934 6630

Nominated Adviser and Joint Broker	Joint Broker
Peel Hunt LLP	FinnCap Limited
Mike Bell	Ed Frisby / Tim Harper (Corporate Finance)
Ed Allsopp	Andrew Burdis / Harriet Ward (ECM)
020 7418 8900	020 7220 0500

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

 

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