Trading Update

RNS Number : 6513D

Renold PLC

11 October 2018

 

Renold plc

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

Period End Trading Update

11 October 2018

Renold, a leading international supplier of industrial chains and related power transmission products, today issues a period end trading update covering the six months ending 30 September 2018 (the 'period') ahead of announcing interim results on 14 November 2018.

Trading in the period has been in line with expectations.  Group revenue in the period grew by 4.5% and, on an underlying¹ basis, by 6.4% compared to the first half of the prior year.  Order intake in the period grew by 1.7% on an underlying¹ basis or 7.4% adjusted to exclude the large multi-year UK Couplings order from the prior year.  Orders were 3.4% ahead of revenue for the period.

The Chain division is making good progress in recovering from the specific issues which affected performance in the prior year.  The rate of raw material price increases has moderated in most geographies, and we have had success in passing these through to customers, resulting in margin recovery.  Output from our Einbeck, Germany facility has been stronger in the period and is supporting improvement in levels of customer service.

As expected, revenue for Torque Transmission division reflected strong growth in our US markets.  This growth was partially off-set by lower revenue in UK Couplings as a result of the phasing of the large multi-year contract.

The Group remains on track to deliver a result for the full year in line with the Board's expectations.

Robert Purcell, Chief Executive of Renold, said:

"It is pleasing to see that we have made good progress in addressing the short-term issues encountered during the previous year.  The strategic plan continues to improve the underlying business and the impact is starting to become visible in the trading results."

(1)   The use of "underlying" excludes the impact of changes in foreign exchange rates by retranslating the prior year comparative figures to the current year exchange rate.

ENQUIRIES:

Renold plc	0161 498 4500
Robert Purcell, Chief Executive
Ian Scapens, Group Finance Director
Peel Hunt LLP	020 7418 8900
Mike Bell
Sam Cann
Instinctif Partners	020 7457 2020
Mark Garraway
Rosie Driscoll

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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