Final results for the year ended 31 March 2023
Renold (AIM: RNO), a leading international supplier of industrial chains and related power transmission products, is pleased to announce its audited results for the year ended 31 March 2023.
Financial highlights
|
£m |
2023 |
2022 |
Change |
Change (constant currency)1 |
|
Revenue |
247.1 |
195.2 |
+26.6% |
+18.8% |
|
Adjusted operating profit2 |
24.2 |
15.3 |
+58.2% |
+46.4% |
|
Return on sales2 |
9.8% |
7.8% |
+200bps |
+190bps |
|
Adjusted profit before tax2 |
18.6 |
11.5 |
+61.7% |
|
|
Net debt3 |
29.8 |
13.8 |
|
|
|
Adjusted earnings per share2 |
6.5p |
4.3p |
+51.2% |
|
|
Additional statutory measures |
|
|
|
|
|
Operating profit |
22.9 |
16.2 |
+41.4% |
|
|
Profit before tax |
17.3 |
12.4 |
+39.5% |
|
|
Basic earnings per share |
5.7p |
4.7p |
+21.3% |
|
|
• |
Revenue up 26.6% to £247.1m (18.8% at constant exchange rates) (2022: £195.2m) |
|
• |
Adjusted operating profit of £24.2m (2022: £15.3m), up 58.2%; return on sales 9.8%, up 200bps |
|
• |
Reported operating profit up 41.4% to £22.9m (2022: £16.2m) |
|
• |
Net debt £29.8m, £16.0m increase in the year, facilitating successful YUK acquisition; ratio to adjusted EBITDA 0.8x (31 March 2022: 0.5x) |
|
• |
Adjusted EPS up 51.2% to 6.5p (2022: 4.3p); Basic EPS 5.7p (2022: 4.7p) |
Business highlights
|
• |
The Group delivered record results despite the difficult trading and macroeconomic backdrop, with the well-publicised inflation and global supply chain challenges |
|
• |
Order intake of £257.5m (2022: £223.9m), up 15.0% |
|
• |
Closing order book £99.5m, up 18.3% against 31 March 2022 |
|
• |
Significant £8.9m long-term military contract win, following a similar contract win of £11.0m in FY22 |
|
• |
Acquisition of Industrias YUK S.A. ("YUK") in August 2022, for €24m, increases the Group's access to the Iberian Chain and wider European Conveyor Chain markets. YUK is performing ahead of expectations |
|
• |
Successful capital investment; improving efficiency and capability of manufacturing locations |
|
|
|
1 See below for reconciliation of actual rate, constant exchange rate and adjusted figures
2 See Note 21 for definitions of adjusted measures and the differences to statutory measures
3 See Note 17 for a reconciliation of net debt which excludes lease liabilities
Robert Purcell, Chief Executive, commented:
"I am delighted with the Group's robust performance during the last financial year which delivered record results and exceeded market expectations, reflecting the benefits of the strategic programmes implemented in recent years. Throughout the reported period, the business performance has been on an improving trend and our order books continue to be healthy though order patterns have been inconsistent in the early part of the new financial year. We recognise that there are still considerable economic challenges in many parts of the world; supply chain issues, although reducing in number and severity, are still prevalent and inflation and prices remain high, for both energy and materials. However, we have entered the new financial year with good momentum and confidence in the excellent fundamentals of the Renold business, although macroeconomic trends add a note of caution. Once again, Renold employees around the world have responded magnificently to the challenges we have faced and I thank them for their dedication and commitment to the Group and our customers."