Final results for the year ended 31 March 2024
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 2024.
Financial highlights
|
£m |
2024 |
2023 |
Change |
Change (constant currency) |
|
Revenue |
241.4 |
247.1 |
-2.3% |
+0.9% |
|
Adjusted operating profit1 |
29.7 |
24.2 |
+22.7% |
|
|
Return on sales |
12.6% |
9.8% |
+280bps |
+260bps |
|
Adjusted profit before tax |
22.1 |
18.6 |
|
|
|
Net debt |
24.9 |
29.8 |
|
|
|
Adjusted earnings per share1 |
7.8p |
6.5p |
|
|
|
Additional statutory measures |
|
|
|
|
|
Operating profit |
30.5 |
22.9 |
|
|
|
Profit before tax |
22.9 |
17.3 |
+32.4% |
|
|
Basic earnings per share |
8.3p |
5.7p |
|
In FY24, Renold continued its strong performance, building on the record results of the previous year. Revenue increased to £241.4m, up slightly from £239.8m in 2023. Adjusted operating profit grew significantly, reaching £29.7m, a 22.7% increase compared to the previous year's £24.2m. This was driven by operational efficiency improvements, including automation, standardization, and cost control.
Order intake dropped to £227.5m from £257.5m in 2023, primarily due to the normalization of supply chains after the post-pandemic surge, but H2 orders grew by 7.5% over H1, indicating recovery. The acquisition of Davidson Chain in Australia contributed positively, strengthening the company’s position in the Australian market. The closing order book stood at £83.6m, consistent with the half-year position, reflecting stable demand.
Despite challenges from inflation and supply chain disruptions, the company demonstrated strong cost management, enabling it to pass on price increases while improving productivity. The outlook remains positive with continued investments in automation and international expansion.
Operational highlights
|
• |
The Group delivered record results, with both Chain and TT divisions performing strongly, notwithstanding the difficult inflationary, trading and macroeconomic backdrop |
|
• |
Order intake of £257.5m (2022: £223.9m), up 15.0% |
|
• |
Order intake of £227.5m (2023: £257.5m), impacted by a shortening in duration of the order book in H1, reflecting improved supply chain conditions. H2 order intake up 7.5% over H1 (8.4% at constant exchange rates) |
|
• |
Closing order book consistent with the half year position at £83.6m |
|
• |
Acquisition of Davidson Chain in September 2023, for AU$6.0m, increases the Group’s access to the Australian conveyor and adapted transmission chain markets. The integration process is progressing to plan |
|
• |
Increased capital investment during the year has improved the efficiency, productivity and capability of manufacturing locations, reflected in the strong margin progression |
|
|
|
1 Adjusted: In addition to statutory reporting, the Group reports certain financial metrics on an adjusted basis. Definitions of adjusted measures and information about the differences to statutory metrics are provided in alternative performance measures on page 156 of the financial statements.
Robert Purcell, Chief Executive, commented:
"I am pleased that the Group continued to perform strongly throughout the year reflecting the hard work, strategically, commercially and operationally, that has been undertaken over recent years by our employees across the world.
The business is now at an inflection point where we are starting to see the compounding impact of the many recent exciting initiatives as they come to fruition. We have a very clear strategy and are executing it diligently.
Our continuous improvement initiatives are building an increasingly efficient, productive and resilient business and are providing an ever improving platform to support our commercial initiatives."