Manchester industrial chain and power transmission firm Renold plc reported that its financial performance in the first four months of the new financial year “has been strong.”

Group revenue for the period was £85.1 million, “a year-on-year increase of 16.6% at reported rates and 18.7% at constant exchange rates “

Renold said that within this, YUK S.A., acquired in August 2022, contributed £5.4 million.

The details were contained in a trading update covering the four months ended July 31, 2023, ahead of the company’s AGM.

Renold said it now anticipates achieving results for the year ending March 31, 2024, higher than previously expected.

“Order intake for the period was £74.2m, a decrease of 2.7% (FY23 equivalent £76.3m), or a 1.0% decrease at constant exchange rates,” said Renold.

“YUK contributed £4.9m to order intake in the period. The order book as at 31 July 2023 of £86.0m remains higher than historic levels.

“However there has been a normalisation of order intake following an improvement in global supply chains, with improvements to delivery times, allowing customers to reduce forward order placement as certainty of deliveries increase, leading to a reduction and shortening of the order book. 

“The order book at 31 July 2023 represents a decrease of 13.6% over the record high position at the end of the previous financial year.

“On the 1 September 2023, the group acquired the trading assets of Davidson Chain PTY, based in Melbourne, Australia, enlarging our already strong Australian Chain business by 26%.

“The Davidson acquisition demonstrates further strategic momentum, supplementing organic growth through high quality bolt-on acquisitions which can expand our geographic presence, grow our product offering and strengthen our market position in key end markets …

“Global markets continue to be uncertain, with ongoing labour cost inflation and material costs remaining high when compared to historic levels.

“Whilst there is a normalisation of demand in some of the group’s end markets, the group retains strong order books which remain high by historical standards, despite a shortening of lead times, reducing the overall quantum.

“As a result of the continued positive trading momentum, and an increase in activity from the recently announced Davidson acquisition, the board now anticipates achieving results for the year ending 31 March 2024, higher than previously expected.”