Renold PLC Trading Update (2281P)

TIDMRNO

RNS Number : 2281P

Renold PLC

08 February 2023

8 February 2023

Renold plc

("Renold" or the "Group")

Trading Update

Renold, a leading international supplier of industrial chains and related power transmission products, today issues a trading update covering the 10 month period ended 31 January 2023.

Trading update

The Group has traded strongly since announcing its interim results in November 2022, with order intake running ahead of sales. Supported by the positive market outlook, the Board now anticipates that underlying operating profit for the full year will be above current market forecasts.

Turnover for the 10 months to 31 January 2023 totalled GBP199.0m (10 months to 31 January 2022: GBP158.7m), 25.4% higher than the prior year comparator on a reported basis, and 17.3% at constant exchange rates.

Group order intake for the 10 month period was GBP216.5m, representing a year-on-year increase of 19.2% on a reported basis, and 11.6% at constant exchange rates. Excluding the impact of long term military contracts, order intake increased by 21.8% or 13.7% at constant exchange rates, with North America being particularly strong, although ordering patterns have started to normalise in Europe and India from the elevated levels experienced earlier in the financial year. The current order book of GBP104.1m is a further record high for the Group (30 September 2022: GBP99.0m) providing good visibility beyond the financial year end.

The integration of Industrias YUK S.A. continues in line with management's expectations at the time of the acquisition, with early progress made in realising identified cost synergies. Net debt at the financial year end is still expected to be comfortably below 1.5x EBITDA.

Given the continued sales growth, a strong orderbook, benefits of the cost reduction and efficiency programmes, and the successful recovery of cost inflation on raw material and energy, the Board is confident the current trading momentum will deliver revenues and underlying operating profit for the full year in excess of market expectations.

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 
                                        renold@investor-focus.co.uk 
 0161 498 4500                          020 3934 6630 
 
   Nominated Adviser and Joint Broker     Joint Broker 
 Peel Hunt LLP                          FinnCap Limited 
 Mike Bell                              Ed Frisby (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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February 08, 2023 02:00 ET (07:00 GMT)

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