Renold PLC
LSE:RNO
Renold PLC
Renold Plc engages in the manufacture and sale of precision engineered and power transmission products. The firm operates through two segments: The Chain segment and The Torque Transmission. The Chain segment manufactures and sells power transmission and conveyor chain and includes sales of torque transmission products through Chain National Sales Companies (NSCs). The Torque Transmission segment manufactures and sells torque transmission products, such as gearboxes and couplings used in power transmission. The company is a manufacturer and developer of coupling and gearbox solutions, from fluid couplings rubber-in-compression and rubber-in-shear couplings, and a range of worm gears, helical and bevel helical worm drives. The company also manufactures gear spindles and gear couplings for the primary metals industry. Its conveyor chain application includes theme park rides, water treatment plants, cement mills, agricultural machinery, mining, and sugar.
Renold Plc engages in the manufacture and sale of precision engineered and power transmission products. The firm operates through two segments: The Chain segment and The Torque Transmission. The Chain segment manufactures and sells power transmission and conveyor chain and includes sales of torque transmission products through Chain National Sales Companies (NSCs). The Torque Transmission segment manufactures and sells torque transmission products, such as gearboxes and couplings used in power transmission. The company is a manufacturer and developer of coupling and gearbox solutions, from fluid couplings rubber-in-compression and rubber-in-shear couplings, and a range of worm gears, helical and bevel helical worm drives. The company also manufactures gear spindles and gear couplings for the primary metals industry. Its conveyor chain application includes theme park rides, water treatment plants, cement mills, agricultural machinery, mining, and sugar.
Strong Results: Renold delivered a robust first half, with revenue up 22%, adjusted operating profit up 33%, and adjusted EPS up 42%.
Record Order Book: The order book reached a record GBP 99 million, up 8.5% over six months and 37% over twelve months.
Acquisition Impact: The acquisition of YUK in Spain was completed and is trading ahead of expectations, contributing positively to sales and profit.
Inflation & Supply Chain: Management highlighted ongoing inflation and supply chain pressures but noted improvement in container availability and reliability.
Strategic Progress: The STEP2 strategy continues to drive growth and operational improvements, including efficiency gains and product standardization.
Debt & Investment: Net debt increased due to the YUK acquisition and inventory build-up, but gearing remains at a manageable 1.2x EBITDA.
Positive Outlook: Despite macro uncertainties, Renold sees continued trading momentum, a healthy acquisition pipeline, and plans to remain cash generative.
