Renold sees higher sales in first quarter trading update

Manchester-based industrial chain supplier Renold said trading is in line with expectations.

Ahead of its annual general meeting today, the group updated the market on first quarter trading, to March 31.

It said the quarter saw overall group performance in line with expectations

Improving order intake in the second half of the previous year was converted into growth in underlying revenue in the quarter of 3.7%, compared with the first quarter of the previous year.

Higher sales are being delivered in both divisions, with underlying revenue ahead by 3.1% for chain and 4.9% for torque transmission.

Today’s update said the trend of orders growing at a faster rate than revenue has continued into the early part of the new financial year, with order intake in the quarter 9.2% ahead of revenue in the same period.

Underlying order intake was 12% higher than in the first quarter of the prior year.

Building its new Chinese chain factory is progressing, with construction nearing completion.

Full operation from the new facility is scheduled for the end of the financial year.

The group said it remains on track to deliver a result for the full year in line with the board’s expectations.

Chief executive Robert Purcell said: “Strong order intake in the latter part of the prior year supported growing revenues in the quarter across most of our geographic regions, with the Americas particularly strong in both the chain and torque transmission divisions.

“Continued revenue growth provides the platform for margin improvement supported by continued progress in delivering against our strategic plan.”