Manufacturer is looking to move to AIM from main market

CEO Robert Purcell

A manufacturing firm which specialises in making industrial chains has announced it is moving to AIM from the main market.

Manchester based Renold said the move would help with its long-term strategic plan.

The firm said it has been implementing a strategic plan which will focus on a number of initiatives including acquisitions.

A statement was issued this morning laying out the details of the proposed move.

The board is proposing to cancel the listing of the company’s ordinary shares of 5p each from the premium segment of the Official List of the UK Listing Authority (the “UKLA”) and to cancel trading on the main market of the Stock Exchange.

It will apply for the admission of the ordinary shares to trading on AIM.

A statement said: “The board considers that it is in the company’s best interests that the entire issued share capital of the company is traded on the same market.

“In the event that the ordinary share cancellation does not occur and the ordinary share admission does not become effective the company intends to withdraw its cancellation request in respect of the preference stock.

“The board has been implementing a strategic plan which continues to focus on a number of initiatives, including acquisitions.

“Having considered what the most appropriate trading platform for the company’s ordinary shares and preference stock on an ongoing basis would be, the Board has concluded that a move to AIM would be in the best interests of the company, shareholders and preference shareholders.”

A general meeting of shareholders is being held next month to seek approval for the move.

Renold is being advised by Eversheds Sutherland with a team led by Daniel Hall and Annika Unsworth. Deloitte carried out financial due diligence.

The firm also issued a trading update for the year.

Trading has been in line with the board’s expectations.

Group revenue in the year grew by 5.7% and, on an underlying basis, by 6.1% compared to the prior year.

Order intake grew by 2.8% on an underlying basis or 5.6% adjusted to exclude the large multi-year UK Couplings order from the prior year.

Orders were 2.0% ahead of revenue for the period.

Net debt finished the year at £29.8m following a year of investment, particularly in a new Chinese factory.

The move to this new factory is completed, the factory is fully operational and Renold has exited the former site.

Chief executive Robert Purcell said: “We have continued to see positive momentum through the year with strong performance in the Chain division and continued order growth across both divisions.

“Our commercial initiatives are a successful element of the strategy we are implementing and they provide the platform for continuing momentum into the new financial year.

“The proposed move to AIM, announced today, will create a more flexible environment to progress the acquisition phase of our strategic plan.”

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