Renold trades in line YTD, acquires MAC Chain Company

10th Sep 2024 08:03

(Sharecast News) - Industrial chains supplier Renold said on Tuesday trading was in line with internal expectations year-to-date, with revenues falling slightly as a result of adverse foreign exchange movements.

Renold said group revenue for the five months ended 31 August was down 2.3% at report rates at £102.3m. However, order intake increased by 14% to £105.5m and the group's order book at period-end sat at £85.5m, close to a record high level.

The London-listed group also revealed that it had acquired the trade and net assets of MAC Chain Company for a total of $31.4m cash, "substantially increasing" its access to the Western US and Canadian CVC markets.

Following completion, the acquisition was expected to be immediately earnings-enhancing, as well as be accretive to the group's operating margin.

"Global markets continue to be uncertain, with activity levels in both mainland Europe and China recovering more slowly than initially anticipated. However, material and labour inflation is now reducing and the group retains a strong order book which remains high by historical standards," said Renold.

"Good trading performance in the period, coupled with the strong order book underpins management's confidence in the outturn for the year. Trading and profitability for the first half is in line with the board's expectations, whilst the full year will now also include six months contribution from the MAC Chain acquisition."

As of 1145 BST, Renold shares were 0.85% higher at 59.50p.

Reporting by Iain Gilbert at Sharecast.com