Renold PLC Trading Update (2674C)
October 16 2020 - 2:00AM
UK Regulatory
TIDMRNO
RNS Number : 2674C
Renold PLC
16 October 2020
Renold plc
("Renold", "the Company" or "the Group")
Trading Update
16 October 2020
Renold, a leading international supplier of industrial chains
and related power transmission products, today issues a period end
trading update covering the six months ended 30 September 2020 (the
'period') ahead of announcing interim results on 11 November
2020.
Renold delivered a resilient performance in the first half
despite its markets being significantly impacted by the Covid-19
pandemic. The business remained profitable throughout the period
and achieved a significant reduction in net debt of GBP10.2m to
GBP26.4m (FY 2019/20: GBP36.6m), despite sales revenue down 17% on
the prior year, at GBP82m.
The Group continued to benefit from a combination of improvement
in the strategic cost base and the productivity gains made in
recent years, together with tactical short term cost saving
measures. These enabled the Group to achieve a positive operating
margin for the period.
Reflecting the impact of global shutdowns and lower levels of
demand across a number of the Group's markets, order intake in the
period was down 21% year on year to GBP76m. However, trends through
the period end suggest that order intake should continue to slowly
improve, albeit at levels below the prior year in the near
term.
Whilst considerable uncertainty remains, Renold benefits from
significant geographic, customer and sector diversification. The
Group's ongoing focus on cost control, operational efficiency,
productivity, and cash management is helping to offset the subdued
demand and should enable the Group to make continued strategic
progress in the second half.
ENQUIRIES:
Renold plc 0161 498 4500
Robert Purcell, Chief Executive
Jim Haughey, Group Finance
Director
Peel Hunt LLP 020 7418 8900
Mike Bell
Ed Allsopp
Instinctif Partners 020 7457 2020
Mark Garraway
Rosie Driscoll
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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END
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