Shares of Manchester industrial chain and power transmission firm Renold plc rose about 15% on Monday after it published a strong trading update for the year ended March 31, 2023, and said it now “expects underlying trading profit and margin for FY23 to be materially ahead of the previous upwardly revised market expectations.”

 “The strong momentum in the company’s performance experienced in the first nine months of the year continued through the final quarter,” said Renold.

“Revenue for the year was £247.1m, a year-on-year increase of 26.6% on a reported basis and 18.8% at constant exchange rates.

“Excluding the impact of the Industrias YUK S.A. acquisition, completed in August 2022, turnover increased by 21.1%, or 13.4% at constant exchange rates.

“Group order intake during FY23 was £260.3m. This represents a year-on-year increase of 16.3% on a reported basis and 9.1% at constant exchange rates.

“Excluding the recently announced £8.9m long term military contract, and the £11.0m military contract announced in the prior year, order intake for the year increased by 18.1%, or 10.6% at constant exchange rates. YUK contributed £12.7m (or 4.9%) of group order intake.

“The order book finished FY23 at £99.5m (31 March 2022: £84.1m).

“As a result of the stronger sales, the impact of the YUK acquisition, benefits of cost reduction and efficiency programmes, and the successful implementation of inflation cost recovery programmes, the board now expects underlying trading profit and margin for FY23 to be materially ahead of the previous upwardly revised market expectations …”

A company compiled market consensus for 2023 revenue, underlying operating profit, and underlying profit before tax show £238.3 million, £19.8 million and £14.3 million respectively.