Near record order numbers boost chains manufacturer’s annual results

Manchester industrial chains and power transmissions manufacturer, Renold, reports a continuation of the strong momentum it experienced in the first half of the year.

In a trading update today it said its full year results for financial year 2024 are now expected to be materially ahead of current market expectations – company-compiled analyst consensus for FY24 is for revenue of £244.3m, and for underlying operating profit of £26.5m – with adjusted operating profit approximately 20% higher than the prior year, driven by a further improvement in margin.

company-compiled analyst consensus for FY24 is for revenue of £244.3m, and for underlying operating profit of £26.5m.

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 March 31, 2024 of £83.6m remains close to record levels and was in line with the half year position (September 30, 2023: £83.6m).

Strong cash conversion, and careful management of working capital has resulted in a year end net debt position of £24.9m (March 31, 2023: £29.8m and September 30, 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.

The group expects to announce its results for FY24 on July 17, 2024.