Renold PLC – RNO – Final Results

Renold PLC – RNO – Final Results

Renold (AIM: RNO), a leading international supplier of industrial chains and related power transmission products, announces its results for the year ended 31 March 2021.

Financial highlights

Adjusted results at constant exchange rates1

2021

2020

Revenue at constant exchange rates

£165.3m

£187.6m

Adjusted operating profit at constant exchange rates

£11.2m

£13.1m

Return on sales2 at constant exchange rates

6.8%

7.0%

Adjusted earnings per share

2.0p

2.9p

Net debt3

£18.4m

£36.6m

Results at actual exchange rates

Revenue

£165.3m

£189.4m

Adjusted operating profit

£11.2m

£13.4m

Return on sales2

6.8%

7.1%

Operating profit

£10.5m

£10.1m

Profit before tax

£5.9m

£4.9m

Basic earnings per share from continuing operations

1.7p

1.5p

Strong cash generation, with net debt reducing by c.50% to £18.4m (2020: £36.6m)

Resilient return on sales 6.8% (2020: 7.1%) despite a reduction in revenues

Adjusted operating profit of £11.2m (2020: £13.4m); operating profit of £10.5m (2020: £10.1m)

Order intake improving, with closing order book c.10% ahead of 31 March 2020

Adjusted EPS of 2.0p (2020: 2.9p); Basic EPS from continuing operations 1.7p (2020: 1.5p)

Revenue down 12.7% (11.9% at constant exchange rates), impacted by Covid-19 pandemic

Business highlights

An effective strategy and responsible management have created an increasingly flexible Group, able to deliver a resilient performance through the pandemic and positioned to capitalise on the anticipated economic recovery

Covid-19 situation mixed; Europe, Americas and China recovering strongly, whilst India and SE Asia impacted by new variants in H2

Swift decision making and cost discipline mitigated sales reduction, despite significant material cost pressures and supply chain disruption

New Chinese factory continuing to progress well

Leverage remains low, increased cash generation facilitates bolt-on acquisitions and strategic capital investment

Major restructuring complete and with the reduction in leverage, together with increased cash generation, acquisitions and strategic growth investment opportunities are now being actively explored

Post year end, on 8 April 2021, Renold completed the bolt-on acquisition of the conveyor chain business of Brooks Ltd

1 See below for reconciliation of actual rate, constant exchange rate and adjusted figures

2 Adjusted operating profit divided by revenue

3 See Note 13 for a reconciliation of net debt which excludes lease liabilities

Robert Purcell, Chief Executive, commented:

"I am pleased with the Group's robust performance through the pandemic which reflected the benefits of the strategic development completed over prior years. In particular, our employees around the world have responded excellently to the challenges we have faced and I thank them for their dedication and commitment to the Company and our customers.

"Throughout the year the business performance has been on an improving trend and I am pleased to report that our order books have continued to grow in the early part of the new financial year. Whilst there remain considerable Covid-19-related challenges in some parts of the world, with supply chain issues and rising costs, we are well placed to deal with these and our performance over the last 12 months gives me confidence that we will return to growth in the new financial year."

No Comments

Post a Comment