Renold PLC Trading Update and Notice of Results (3429I)
14 April 2022 - 4:00PM
UK Regulatory
TIDMRNO
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 GBP195.0m, 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 GBP223.7m. 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 GBP11.0m
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 GBP84.1m is a record high for the Group (31 March 2021:
GBP53.6m).
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.GBP4.0m.
This includes gains from new lease arrangements on sub-let
properties and US PPP Covid loan relief, of which GBP1.2m 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 GBP13.8m (30 September 2021: GBP13.9m), a
reduction of GBP4.6m 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
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 / 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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