Renold PLC AGM Statement and Interim Management Statement (9489M)
22 July 2014 - 4:01PM
UK Regulatory
TIDMRNO
RNS Number : 9489M
Renold PLC
22 July 2014
Renold plc
("Renold", "the Company" or "the Group")
AGM Statement and Interim Management Statement
Renold, a leading international supplier of industrial chains
and related power transmission products, today issues its interim
management statement covering the period from 1 April 2014 to the
current date.
Strategic update
The final significant steps of the Bredbury closure project were
completed during the first quarter as planned. The annualised
savings arising from the project of GBP3.2m are in line with
expectations and delivery has commenced slightly earlier than
expected. Completion of the project will now allow more management
time to be focussed on other continuous improvement initiatives to
lower the Group's cost base further.
Financial update
Underlying (1) group revenue in the first quarter was 0.9% above
the same period in the prior year. This reflects an improving trend
relative to the 2.3% underlying revenue contraction in the first
half of the prior year and the 0.8% contraction in the second half.
The growth in the first quarter of the current year was driven by a
combination of absolute growth in the Chain division and a further
reduction in the rate of decline in Torque Transmission.
The combination of the early delivery of savings from the
Bredbury factory closure, and other ongoing incremental actions to
reduce the Group's breakeven point, have resulted in the Board's
current expectations for the full year adjusted operating profit
being above the current range of market forecasts, despite the
adverse impact of foreign exchange movements.
There have been no other significant changes in the position of
the Company over the period since the publication of the full year
results for the year ended 31 March 2014.
Robert Purcell, Chief Executive of Renold, said:
"By completing the Bredbury closure project ahead of schedule we
have accelerated the delivery of the resulting savings and also
freed up management time to focus on new continuous improvement
initiatives for the business. Self-help measures remain our
priority and we are well placed to deliver further ongoing
improvements in operational efficiencies and business processes
which will generate additional reductions in our cost base."
22 July 2014
(1) The use of "underlying" excludes the impact of changes in
foreign exchange rates.
ENQUIRIES:
Renold plc 0161 498 4500
Robert Purcell, Chief Executive
Brian Tenner, Finance Director
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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