Renold plc
Final results for the year ended 31 March 2022
(“Renold”, the “Company” or, together with its subsidiaries, the “Group”)
Significant revenue and earnings rebound…Record order book…Continued net debt reduction
Renold (AIM: RNO), a leading international supplier of industrial chains and related power transmission products, announces its results for the year ended 31 March 2022.
Financial highlights
|
Adjusted results at constant exchange rates1 |
2022 |
Restated4 2021 |
|
Revenue at constant exchange rates |
£195.2m |
£160.8m |
|
Adjusted operating profit at constant exchange rates |
£15.3m |
£10.9m |
|
Return on sales2 at constant exchange rates |
7.8% |
6.8% |
|
Adjusted earnings per share |
4.3p |
2.3p |
|
Net debt3 |
£13.8m |
£18.4m |
|
Results at actual exchange rates |
|
|
|
Revenue |
£195.2m |
£165.3m |
|
Adjusted operating profit |
£15.3m |
£11.4m |
|
Return on sales2 |
7.8% |
6.9% |
|
Operating profit |
£16.2m |
£10.7m |
|
Profit before tax |
£12.4m |
£6.1m |
|
Basic earnings per share from continuing operations |
4.7p |
2.0p |
|
• |
Revenue up 18.1% to £195.2m (21.4% at constant exchange rates) |
|
• |
Adjusted operating profit of £15.3m (2021: £11.4m), up 34.2%, with return on sales of 7.8% up 90bps |
|
• |
Reported operating profit up by over 50% to £16.2m (2021: £10.7m) |
|
• |
Net debt of £13.8m, £4.6m reduction in the year; ratio to adjusted EBITDA 0.6x (31 March 2021: 0.9x) |
|
• |
Adjusted EPS up 87% to 4.3p (2021: 2.3p); Basic EPS 4.7p (2021: 2.0p) |
Business highlights
|
• |
Multiple businesses across the Group delivered record results |
|
• |
Renold's markets rebounded strongly from the Covid-19 pandemic |
|
• |
Order intake of £223.9m (2021: £170.0m) up 31.7% |
|
• |
Closing order book of £84.1m up 57% vs FY21 at constant exchange rates |
|
• |
Significant £11.0m long-term military contract win |
|
• |
Successful strategic capital investment; improving efficiency |
|
• |
Strong performance despite significant economic uncertainty, cost pressure, material availability and global supply chain disruption |
|
• |
Record revenue, order intake and closing order book in Chain Europe and Americas |
|
• |
Successful bolt-on acquisition in the Chain division, with payback of less than two years |
1 See below for reconciliation of actual rate, constant exchange rate and adjusted figures
2 Adjusted operating profit divided by revenue
3 See Note 17 for a reconciliation of net debt which excludes lease liabilities
4 The results for the year ended 31 March 2021 have been restated, see Note 20 for details of the restatement
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 in recent years. 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 Group and our customers during this difficult period.
“Throughout the reported period the business performance has been on an improving trend and our order books have continued to grow in the early part of the new financial year. We are cognisant that there remain considerable Covid-19-related challenges in some parts of the world; supply chain issues are still prevalent and inflation is high. However, we have entered the new financial year with good momentum and a belief in the excellent fundamentals of the Renold business upon which we are building.”