Record year for Renold, but no dividend for shareholders
Manchester manufacturer, Renold, has reported record figures for the year to March 31, 2023, which it says are a result of strategic programmes implemented over recent years.
However, the international supplier of industrial chains and power transmission products has decided not to pay a dividend to shareholders.
Revenues for the year were £247.1m, 26.6% up from £195.2m the previous year. A pre-tax profit of £17.3m was a 39.5% improvement on the £12.4m figure a year ago.
But chair, David Landless, said the group has declined to make any dividend payments, saying: “The board has carefully reviewed its capital allocation priorities, and believes that both organic and inorganic investment opportunities that are available to the group will deliver higher levels of shareholder return over the medium term than the payment of dividends in the near term.”
During the reporting period, Renold revealed that net debt more than doubled, rising from £13.8m to £29.8m, which included the successful Industrias YUK SA acquisition in August 2022, for €24m, which the group says increases its access to the Iberian Chain and wider European Conveyor Chain markets.
Order intake of £257.5m was 15% better than the previous year, and a closing order book of £99.5m 18.3% up against the previous period.
Renold also achieved a significant £8.9m long term military contract win, following a similar contract win of £11m in fiscal year 2022.
Chief executive, Robert Purcell, said the results represented a record achievement and exceeded market expectations, reflecting the benefits of the strategic programmes implemented in recent years.
He said: “Throughout the reported period, the business performance has been on an improving trend and our order books continue to be healthy though order patterns have been inconsistent in the early part of the new financial year.
“We recognise that there are still considerable economic challenges in many parts of the world; supply chain issues, although reducing in number and severity, are still prevalent and inflation and prices remain high, for both energy and materials.
“However, we have entered the new financial year with good momentum and confidence in the excellent fundamentals of the Renold business, although macroeconomic trends add a note of caution.”
He added: “Once again, Renold employees around the world have responded magnificently to the challenges we have faced and I thank them for their dedication and commitment to the group and our customers.”
