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Renold PLC on Wednesday reported increased revenue but lower profit, while volume demand fell at the start of its new year as it awaits the approval of a takeover offer. Renold is a Manchester, England-based supplier of industrial chains and related power-transmission products. Earlier this month, it called court and general meetings for July 28 to approve its takeover by funds managed by MPE Management Co LLC. Last month, Renold agreed to a £186.7 million takeover offer from the US private equity firm. The deal values each share at 82 pence. Revenue increased 1.5% to £245.1 million in the twelve months to the end of March from £241.4 million a year prior. Pretax profit fell 10% to £20.6 million from £22.9 million, as operating costs climbed 2.7% to £216.6 million from £210.9 million. Basic earnings per share were down 8.4% at 7.6p from 8.3p in the previous year. On an adjusted basis, EPS climbed 15% to 9.0p from 7.8p. Renold said its revenue benefitted from a strong performance in both its Chain and TT divisions despite continued market uncertainty. The firm reported a constant currency order intake of £250.1 million, up 9.9% from £227.5 million in financial 2024. Its closing order book was £83.0 million, down 0.7% from £83.6 million a year ago. ‘I am pleased that the group performed strongly throughout the year, reflecting Renold’s excellent market position and fundamentals, combined with all the hard work, strategically, commercially and operationally, that has been undertaken over recent years by our employees across the world,’ said Chief Executive Robert Purcell. Looking ahead, Purcell said volume demand during the early part of financial 2026 has been ‘slightly below’ prior year levels, as customers defer procurement decisions due to heightened uncertainty. The company said reduced sales volumes during the first quarter were ‘largely offset’ by pricing, as it said it will take further pricing action to manage cost increases if necessary. Renold said it is also seeking to manage the effects of currency movements, particularly for the weaker US dollar, which would represent a ‘translational headwind to earnings’ if maintained. CEO Purcell added: ‘We would expect greater customer outlook visibility to drive improved demand, but currently anticipate this to remain subdued, at least through the remainder of the first half of the current financial year. ‘Against this backdrop, we are focussed on maximising our efficiency and ensuring we can respond effectively to changing conditions, in order to maintain our strategic momentum.’ Shares in Renold were flat at 80.40 pence in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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