Trading update for the year ended 31 March 2024
15 April 2024
Renold plc
("Renold", the "Company" or the "Group")
Trading update for the year ended 31 March 2024
Notice of Results
Renold, a leading international supplier of industrial chains and related power transmission products, is pleased to provide a trading update for the year ended 31 March 2024 ("FY24" or the "Year"), ahead of the announcement of the Company's preliminary results for the Year.
Trading update
The strong momentum in the Group's performance in the first half of the Year continued throughout the second half of FY24. The results for the full year are now expected to be materially ahead of current market expectations1, with adjusted operating profit approximately 20% higher than the prior year, driven by a further improvement in margin.
Revenue for the year was £241.5m, a year-on-year increase of 0.9% at constant exchange rates, or a 2.3% reduction when currency headwinds are taken into account. Progress continues to be made with the Group's productivity and efficiency programmes, which are driving sustainable margin and profit improvement.
Order intake in the second half increased over the first six months by 7.5%, or 8.2% at constant exchange rates. The closing order book at 31 March 2024 of £83.6m remains close to record levels and was in line with the half year position (30 September 2023: £83.6m).
Strong cash conversion, and careful management of working capital has resulted in a year end net debt position of £24.9m (31 March 2023: £29.8m and 30 September 2023: £28.3m), a reduction of £4.9m over FY23 after taking account of increased efficiency related capital expenditure and shares purchased to ensure no dilution from LTIP awards.
The Group continues to strengthen its financial position, which provides funding capacity to support its strategic growth objectives. These include both investment to further enhance operational capabilities as well as value-accretive acquisitions, from a developing pipeline of opportunities.
Notice of results
The Group expects to announce its results for FY24 on 17 July 2024.
Note: All figures used in this announcement relating to the financial year ended 31 March 2024 remain subject to audit.
1 Company compiled analyst consensus for FY24 is for revenue of £244.3m, and for underlying operating profit of £26.5m.
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:
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Renold plc |
IFC Advisory Limited |
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Robert Purcell, Chief Executive |
Tim Metcalfe |
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Jim Haughey, Group Finance Director |
Graham Herring |
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0161 498 4500 |
020 3934 6630 |
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Nominated Adviser and Joint Broker |
Joint Broker |
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Peel Hunt LLP |
FinnCap Limited |
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Mike Bell |
Ed Frisby / Tim Harper (Corporate Finance) |
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Ed Allsopp |
Andrew Burdis / Harriet Ward (ECM) |
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020 7418 8900
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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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