Renold FY results seen 'materially ahead' of market expectations

15th Apr 2024 10:32

(Sharecast News) - Industrial chains manufacturer Renold said on Monday that its full-year results would now be "materially ahead" of current market expectations as "strong" first-half momentum continued throughout H2.

Renold said adjusted operating profits were approximately 20% higher year-on-year, driven by a further improvement in margins, while revenue for the year was £241.5m, up 0.9% at constant exchange rates, as progress continued to be made with the group's productivity and efficiency programmes, which were driving sustainable margin and profit improvement.

The AIM-listed group stated order intake in the second half increased over the first six months by 7.5%, while its closing order book on 31 March 2024 sat at £83.6m, close to record levels and in line with its interim position.

Renold added that strong cash conversion, and careful management of working capital had resulted in a year-end net debt position of £24.9m, a reduction of £4.9m over FY23. The firm noted that it continues to strengthen its financial position, which provides funding capacity to support its strategic growth objectives.

As of 1030 BST, Renold shares were up 6.59% at 42.96p.

Reporting by Iain Gilbert at Sharecast.com