Renold sees FY profits ahead of market expectations

8th Feb 2023 08:17

(Sharecast News) - Renold said on Wednesday that full-year profits were set to be ahead of current market expectations following strong trading since the interim results in November.

In an update for the 10 months to the end of January, the company said order intake was running ahead of sales.

During the period, order intake rose 19.2% to £216.5m. Excluding the impact of long-term military contracts, order intake was up 21.8%, with North America "particularly strong". Renold said ordering patterns have started to normalise in Europe and India from the elevated levels seen earlier in the financial year.

Renold said the current order book of £104.1m is a further record high, up from £99m at the end of September.

"Supported by the positive market outlook, the board now anticipates that underlying operating profit for the full year will be above current market forecasts," it said.

"Given the continued sales growth, a strong orderbook, benefits of the cost reduction and efficiency programmes, and the successful recovery of cost inflation on raw material and energy, the board is confident the current trading momentum will deliver revenues and underlying operating profit for the full year in excess of market expectations," it added.

At 1015 GMT, the shares were up 13% at 27.70p.

Renold is a manufacturer of industrial chains and torque transmission products which are sold throughout the world to a broad range of original equipment manufacturers and distributors.