Interim Results

Renold PLC
13 November 2000


                                  RENOLD PLC

                             2000 Interim Results

Precision engineering group, Renold plc, the leading international
manufacturer and supplier of chains, gears, couplings, machine tools and
rotors, today announces its interim results for the six months ended 30
September 2000.

Summary


  * The results show a continuing recovery in sales and profitability.

  * Turnover was £106.6 million (1999/2000: £86.3 million), up 8% on a like
    for like basis, and up 24% including Jeffrey Chain.

  * Profit before tax, redundancy costs and goodwill amortisation was up 24%
    at £5.1 million (1999/2000: £4.1 million).

  * Adjusted earnings per share were 4.7p (1999/2000: 3.8p), up 24%.

  * The power transmission businesses were ahead of last year, with strong
    performances in continental Europe and North America.

  * The core chain businesses made further good progress.

  * The Jeffrey Chain business has been successfully integrated into the
    Group.

  * Holroyd's machine tool sales were well ahead of last year, new orders
    include a significant contract for the microprocessor manufacturing
    industry.

  * After the period end, £7.7 million was realised from the sale of the
    former chain factory at Burnage, Manchester, against a balance sheet
    valuation of £5.0 million.

Prospects

Roger Leverton, Chairman of Renold plc, said:

'The recovery in Group sales and profitability which began in the second half
of last year has continued through the first half of 2000/01. The power
transmission businesses in continental Europe and North America are performing
well, however trading conditions in the UK remain challenging and we maintain
constant pressure on costs and efficiencies. The machine tool businesses'
results were markedly better than in the first half of last year, the rate of
order intake is encouragingly higher and provides a sound base for the second
half. Overall, we expect the underlying improvement in results to continue
through the second half.'



                                  RENOLD PLC

                           Chairman: Roger Leverton

                     Interim Statement for the half year

                           ended 30 September 2000

Financial Summary
                                                           First half year
                                                         2000/2001   1999/2000
                                                                £m          £m


Turnover                                                     106.6        86.3

Trading profit before goodwill amortisation and
exceptional redundancy costs                                   7.2         4.4

Profit before tax, goodwill amortisation and
exceptional redundancy costs                                   5.1         4.1

Profit before tax                                              4.3         3.8

Earnings per ordinary share
- based on adjusted earnings                                  4.7p        3.8p
- based on reported earnings                                  3.9p        3.6p

Interim dividend
per ordinary share                                            3.1p        3.1p

Capital expenditure                                            5.6         4.5

Operating cash flow after capital expenditure                  5.3         3.4

Gearing (net borrowings to shareholders' funds)                46%        (7)%

Group results and dividend

The results for the half year to 30 September mark a continuation of the
recovery which began in the second half of last year and include for the first
time a contribution from Jeffrey Chain, which was acquired on 31 March 2000.

Profit before tax was 24% higher at £5.1 million before redundancy costs of £
0.1 million and goodwill amortisation of £0.7 million (1999/2000 - £4.1
million before redundancy costs of £0.2 million and goodwill amortisation of £
0.1 million) on a turnover of £106.6 million (1999/2000 - £86.3 million), up
24%. Adjusted earnings per share, before redundancy costs and goodwill
amortisation, were 4.7 pence (1999/2000 - 3.8 pence), up 24%. The Group's
effective tax rate has reduced to 32% of profit before goodwill amortisation
from 33% in the first half of last year.

The Board has declared an interim dividend of 3.1 pence per share, at the same
level as last year. This dividend will be paid on 26 January 2001 to
shareholders on the register on 3 January 2001.

Comment

The Group's results for the half year to 30 September 2000 show a continuing
recovery in sales and profitability with an encouraging improvement in the
machine tool businesses compared with the same period last year. The power
transmission businesses were ahead of last year overall, with strong
performances from the operations in continental Europe and North America, but
with the UK businesses continuing to struggle in a difficult trading
environment. During the first half the Jeffrey Chain business has been
successfully integrated into the Group and made a positive contribution after
financing costs.

Sales for the first half year were up 24% in total and were 8% up, excluding
Jeffrey Chain and at constant exchange rates. Trading profit before redundancy
costs and goodwill amortisation was 64% higher at £7.2 million and was 30%
higher, excluding Jeffrey Chain and at constant exchange rates.

Power transmission

The core chain businesses made further good progress. The acquisition of
Jeffrey Chain, one of the leading US manufacturers and suppliers of industrial
chain, was a major step forward in our strategy of developing the Group's
chain operations. The integration process has moved forward rapidly, with the
enthusiasm and commitment of the management teams in the US and in Europe a
major factor in this success. The results of Jeffrey Chain in the first half
were in line with our expectations and produced a small profit after charging
financing costs. The additional benefits to the Group of the acquisition are
increased penetration of the US chain market, the world's largest, through
supply of Renold products manufactured in Europe, and the sale of Jeffrey
products outside the USA through the Group's world-wide sales network. These
benefits are being realised with, for example, over one hundred new chain
products currently being manufactured at our UK and German factories for the
US market. Over the first half year the German operation again increased
profitability as good manufacturing performance overcame the effects of flat
demand in its domestic and export markets. The UK result, however, was lower
than a year ago as the increased strength of the pound adversely impacted
margins in its European export markets.

The Automotive Systems business in Calais continued the improved performance
achieved in the final quarter of last year, with sales and output growing, and
as the benefits of the major capital investment programme are realised.

The European merchanting operations increased profits on sales which were
marginally ahead of last year.

The UK based gear and coupling businesses have been adversely affected by weak
demand in their home and export markets. However, the Cardiff and Halifax
coupling businesses performed satisfactorily and there are recent indications
of a recovery in their order intake levels. Due to the tough trading
conditions the gearbox business at Milnrow and the Manifold indexing business
are undergoing continued reorganisation and rationalisation designed to reduce
costs, whilst redesign and upgrade of their product ranges is ongoing.

The Group's North American power transmission businesses had a good half year
with sales and profit at the Renold Ajax large coupling operation ahead of
last year, and with profitability increased in both the US and Canadian sales
businesses.

In Malaysia and Singapore the recovery is well established. New Zealand had a
sound first half, the move to the newly built office and warehouse on the
factory site in Auckland being completed on schedule and without interruption
to the business. In Australia, demand from manufacturing industry for power
transmission products remains slack and results remain depressed.

Machine Tool and Rotor

Holroyd's machine tool sales were well ahead of last year and included
deliveries against a large order for a US air conditioning manufacturer. New
orders include a significant machine contract for an application for the
microprocessor manufacturing industry. The rotor supply business has performed
well and has a sound order base for the remainder of the year.

Jones & Shipman and Edgetek losses were reduced and order intake improved. A
new range of Jones & Shipman products, the Techmaster series, was well
received at its launch at the important Chicago machine tool exhibition in
September. New orders for Edgetek's superabrasive machine tools ran at a more
encouraging rate in the second quarter.

Capital expenditure and cash

Cash outflow for capital expenditure in the half year was £5.6 million,
compared with £4.5 million last year, in the main related to new equipment for
the automotive systems factory at Calais, and the transmission chain factories
in Germany and the UK. Operating cash inflow after capital expenditure was £
5.3 million, compared with £3.4 million in the first half of last year,
reflecting a continuing high trading profit to cash conversion ratio of
greater than 80%.

After financing costs, taxation and dividend outflows totalling £8.9 million
and the payment of the balance of the Jeffrey acquisition costs of £0.9
million there was a net cash outflow of £4.5 million, the same as last year.
Borrowings at 30 September were £40.3 million, up £6.8 million from the year
end level after an exchange translation difference of £2.3 million. Gearing
was 46% of shareholders' funds.

We were pleased to announce on 31 October 2000 that we had completed the
unconditional sale of the former chain factory at Burnage, Manchester, to
Tesco Stores Limited. The net proceeds of the sale, £7.7 million, will be used
to pay down borrowings. The carrying value of the site in the balance sheets
at 30 September and 1 April 2000 was £5.0 million.

 Prospects

The recovery in Group sales and profitability which began in the second half
of last year has continued through the first half of 2000/01. The power
transmission businesses in continental Europe and North America are performing
well, however trading conditions in the UK remain challenging and we maintain
constant pressure on costs and efficiencies.

The UK and German chain factories should benefit further from increases in
sales into the US market through Jeffrey Chain over the remainder of the year.
The machine tool businesses' results were markedly better than in the first
half of last year, the rate of order intake is encouragingly higher and
provides a sound base for the second half.

Overall, we expect the underlying improvement in results to continue through
the second half.

RELEASE OF INTERIM STATEMENT

The Interim Statement will be posted to shareholders on 17 November 2000.
Copies will be available for the public from that date at the Company's
registered office, Renold House, Styal Road, Wythenshawe, Manchester M22 5WL.

For further information, please contact

Renold plc

David Cotterill, Chief Executive     :     13 November 2000 - 020 7329 0096

Tony Brown, Finance Director         :     Thereafter - 0161 437 5221

Issued by :

Shandwick International

John Wade/James Gordon               :     Telephone - 020 7329 0096



Group Profit and Loss Account

_______________________________________________________________________________
for the half year ended 30 September 2000 (unaudited)


                                                First half year           Full
                                                                          year
                                               2000/        1999/        1999/
                                                2001         2000         2000
                                                  £m           £m           £m

Turnover                                       106.6         86.3        174.2

Trading costs
- normal operating costs excluding goodwill
amortisation                                  (99.4)       (81.9)       (163.2)
- goodwill amortisation                        (0.7)        (0.1)        (0.2)
- exceptional redundancy and restructuring     (0.1)        (0.2)        (0.4)
costs

                                              (100.2)       (82.2)      (163.8)

Trading profit                                   6.4          4.1         10.4
Interest payable                               (2.1)        (0.3)        (0.8)

Profit on ordinary activities before tax         4.3          3.8          9.6
                                                ____         ____         ____

Tax: UK                                            -            -            -
Overseas                                       (1.6)        (1.3)        (3.5)

                                               (1.6)        (1.3)        (3.5)

Profit for the period                            2.7          2.5          6.1
Dividends (including non-equity)               (2.2)        (2.1)        (6.5)

Retained profit/(loss) for the period            0.5          0.4        (0.4)

Adjusted earnings per ordinary share
- based on reported earnings adjusted for
goodwill amortisation and exceptional
redundancy and restructuring costs after tax    4.7p         3.8p         9.4p
relief

Basic and diluted earnings per ordinary share
- based on reported earnings                    3.9p         3.6p         8.6p


Dividends per ordinary share                    3.1p         3.1p        9.25p




Group Balance Sheet

_______________________________________________________________________________
as at 30 September 2000 (unaudited)

                                                At              At           At
                                      30 September       2 October            1
                                                                          April
                                              2000            1999         2000
                                                £m              £m           £m

Fixed assets
Intangible asset - goodwill                   27.3             2.8         26.3
Tangible assets                               58.6            53.0         58.7

                                              85.9            55.8         85.0
Current assets
Stocks                                        51.8            45.2         50.1
Debtors                                       43.7            34.5         45.7
Cash and short term deposits                   6.6            16.5         14.3

                                             102.1            96.2        110.1
Creditors - due within one year
Loans and overdrafts                         (8.3)           (4.6)       (11.4)
Other creditors                             (42.2)          (40.5)       (49.9)

                                            (50.5)          (45.1)       (61.3)

Net current assets                            51.6            51.1         48.8

Total assets less current liabilities        137.5           106.9        133.8

Creditors - due after one year
Loans                                       (38.4)           (5.3)       (36.1)
Other creditors                              (0.2)           (0.7)        (0.5)

Provisions for pensions                     (11.0)          (12.5)       (10.8)

Net assets                                    87.9            88.4         86.4

Capital and reserves
(including non-equity interests)
Called up share capital                       17.9            17.9         17.9
Share premium                                  6.0             6.0          6.0
Other reserves                                64.0            64.5         62.5

Shareholders' funds                           87.9            88.4         86.4




Summarised Group Cash Flow Statement

_______________________________________________________________________________
for the half year ended 30 September 2000 (unaudited)

                                               First half year           Full
                                                                         year
                                              2000/        1999/        1999/
                                               2001         2000         2000
                                                 £m           £m           £m
Cash flow from operating activities
Trading profit                                  6.4          4.1         10.4
Depreciation                                    4.8          4.0          8.0
Goodwill amortisation                           0.7          0.1          0.2
Increase in working capital                   (1.3)        (0.6)        (5.3)
Other                                           0.3          0.3        (0.6)

                                               10.9          7.9         12.7

Returns on investments and servicing of
finance
- issue costs of long term debt               (0.6)            -            -
- net interest paid                           (2.3)        (0.4)        (0.6)
Taxation                                      (1.7)        (3.2)        (4.7)
Capital expenditure                           (5.6)        (4.5)        (9.5)
Acquisition
- purchase consideration including costs      (0.9)            -       (35.3)
- net cash acquired with subsidiary               -            -          0.1
Equity dividends paid                         (4.3)        (4.3)        (6.5)
Cash outflow before use of liquid resources
and financing                                 (4.5)        (4.5)       (43.8)

Management of liquid resources
- transfers from short term deposits            1.8          8.7         11.1

Financing
- issue of shares                                 -          0.1          0.1
- increase/(decrease) in debt and lease         4.2        (0.4)         32.2
financing

Increase/(decrease) in cash in the period       1.5          3.9        (0.4)

Reconciliation of net cash flow to movement
in net funds

Increase/(decrease) in cash in the period       1.5          3.9        (0.4)
Cash outflow from (increase)/decrease in
debt
and lease financing                           (4.2)          0.4       (32.2)
Cash flow from decrease in liquid resources   (1.8)        (8.7)       (11.1)

Change in net debt resulting from cash flows  (4.5)        (4.4)       (43.7)
Exchange translation difference               (2.3)        (0.1)        (0.6)

Movement in net debt in the period            (6.8)        (4.5)       (44.3)
Net (debt)/funds at beginning of period      (33.5)         10.8         10.8

Net (debt)/funds at end of period            (40.3)          6.3       (33.5)



Notes to the Interim Statement

_______________________________________________________________________________
1.    Statement of total recognised gains and losses

                                            First half year           Full year
                                           2000/          1999/       1999/2000
                                            2001           2000
                                              £m             £m              £m

      Profit for the period                  2.7            2.5             6.1
      Exchange translation differences
      on foreign
      currency net investments               1.0          (0.8)           (2.0)

      Total recognised gains                 3.7            1.7             4.1



2.    Reconciliation of movements in shareholders' funds

                                            First half year           Full year
                                           2000/          1999/       1999/2000
                                            2001           2000
                                              £m             £m              £m

      Profit for the period                  2.7            2.5             6.1
      Dividends                            (2.2)          (2.1)           (6.5)

      Retained profit/(loss) for the         0.5            0.4           (0.4)
      period
      Issue of ordinary shares                 -            0.1             0.1
      Exchange translation differences
      on foreign
      currency net investments               1.0          (0.8)           (2.0)

      Net addition to/(reduction in)         1.5          (0.3)           (2.3)
      shareholders' funds
      Opening shareholders' funds           86.4           88.7            88.7

      Closing shareholders' funds           87.9           88.4            86.4


 3.   Analysis of activities

      Activities classified by business segment:

                                               First half year             Full
                                                                           year
                                              2000/         1999/         1999/
                                               2001          2000          2000
                                                 £m            £m            £m
      Turnover
      Power transmission                       90.4          73.0         145.2
      Machine tool and rotor                   17.0          14.4          31.2
                                              107.4          87.4         176.4
      Less: Inter activity sales                0.8           1.1           2.2
                                              106.6          86.3         174.2

      Trading Profit
      Power transmission                        7.2           5.3          11.8
      Machine tool and rotor                      -         (0.9)         (0.8)
                                                7.2           4.4          11.0
      Less:
      Goodwill amortisation                     0.7           0.1           0.2
      Exceptional redundancy and                0.1           0.2           0.4
      restructuring costs
                                                6.4           4.1          10.4
      Trading Assets
      Power transmission                       88.6          69.2         83.4*
      Machine tool and rotor                   21.7          20.5          21.7
                                              110.3          89.7         105.1




      Activities classified by geographical region of operation:

                                    First half year                   Full year
                               2000/2001         1999/2000            1999/2000
                                      £m                £m                   £m
      Turnover
      United Kingdom                45.7              40.7                 85.1
      Germany                       16.1              16.6                 32.8
      France                        16.5              15.8                 31.5
      Rest of Europe                 7.7               8.1                 15.4
      North America                 34.2              16.7                 33.3
      Other countries                8.7               8.5                 17.5
                                   128.9             106.4                215.6
      Less: Intra Group sales       22.3              20.1                 41.4
                                   106.6              86.3                174.2

      Turnover by geographical region includes intra group sales as follows:
      United Kingdom                15.6              13.5                 28.2
      Germany                        5.0               4.6                  9.5
      France                         1.1               1.5                  2.8




                                               First half year             Full
                                                                           year
                                              2000/         1999/         1999/
                                               2001          2000          2000
                                                 £m            £m            £m
      Trading Profit
      United Kingdom                            1.0           1.3           3.4
      Germany                                   1.9           1.5           4.2
      France                                    1.2           0.8           1.4
      Rest of Europe                            0.5           0.6           1.0
      North America                             2.4           0.1           0.6
      Other countries                           0.2           0.1           0.4
                                                7.2           4.4          11.0
      Less:
      Goodwill amortisation                     0.7           0.1           0.2
      Exceptional redundancy and                0.1           0.2           0.4
      restructuring costs
                                                6.4           4.1          10.4

      Trading Assets
      United Kingdom                           53.6          51.7          52.9
      Germany                                  11.4          10.3           9.7
      France                                   10.3           9.0           9.9
      Rest of Europe                            3.6           3.6           3.9
      North America                            25.1           9.5         22.7*
      Other countries                           6.3           5.6           6.0
                                              110.3          89.7         105.1


        *Includes £12.8 million trading assets of Jeffrey Chain LP acquired on
        31 March 2000.

        Trading assets comprise fixed assets, current assets less creditors
        but exclude goodwill, cash, property held for sale, borrowings,
        dividends, corporate tax, finance lease obligations and provisions for
        pensions.
 


      Geographical analysis of external turnover by market area:
      United Kingdom                     18.4             18.9             35.8
      Germany                            12.9             14.3             28.5
      Rest of Europe                     21.8             20.4             40.6
      North and South America            41.5             21.8             46.3
      Other countries                    12.0             10.9             23.0

                                        106.6             86.3            174.2



 4.     The interim accounts are unaudited and do not constitute statutory
        accounts. They have been prepared:

     (a) under the historical cost convention, and

     (b) in accordance with applicable accounting standards, using the same
         accounting policies

      as set out in the Annual Report for the year ended 1 April 2000.

     There is no material difference between the result as disclosed in the
     profit and loss account and the result on an unmodified historical cost    
    basis.

     The Interim Statement was approved by the Board on 13 November 2000.