Shares of Manchester industrial chain and power transmission firm Renold plc soared as much as 25% on Monday after it published a strong trading update covering the four months ended July 31, 2021, ahead of the company’s AGM.
“The board is pleased to report that the strong momentum experienced in the fourth quarter of the last financial year has been maintained in the new financial year, resulting in the continued recovery of both revenues and order intake,” said Renold.
“Order intake for the period was £79.7m, an increase of 61.3% over the prior year equivalent period or 69.3% at constant exchange rates.
“Excluding the recently announced £11.0m long term military contract, order intake for the period increased by 39.1% or 46.7% at constant exchange rates.
“Current order books at £70.5m represent a record high for the group.
“Sales revenue for the period, at £62.5m, represents an increase of 13.6% on the prior year equivalent period or 19.9% at constant exchange rates.
“Net debt remained stable during the period and totalled £18.5m as at 31 July 2021, despite an increase in working capital due to the improved activity levels and much lengthened supply chains, compared to £18.4m on 31 March 2021.
“Renold benefits from significant geographic, customer and sector diversification.
“Consequently, and despite uncertainty caused by considerable raw material and transport cost inflation and continuing supply chain disruption, the board now expects adjusted operating profit for both the first half and full year of FY22 to be higher than both market expectations and the equivalent prior year period.”