Manchester industrial chain and power transmission firm Renold plc said its results for the full year are now expected to be materially ahead of current market expectations “with adjusted operating profit approximately 20% higher than the prior year …”

Renold shares rose about 5% and are up about 50% for the past 12 months.

In a trading update for the year ended March 31, 2024, Renold said the strong momentum in the group’s performance in the first half of the year continued throughout the second half of FY24. 

The firm said revenue for the year was £241.5 million, a year-on-year increase of 0.9% at constant exchange rates, or a 2.3% reduction “when currency headwinds are taken into account.”

It said order intake in the second half increased over the first six months by 7.5%, or 8.2% at constant exchange rates.

“The closing order book at 31 March 2024 of £83.6m remains close to record levels and was in line with the half year position (30 September 2023: £83.6m),” said Renold.

“Strong cash conversion, and careful management of working capital has resulted in a year end net debt position of £24.9m (31 March 2023: £29.8m and 30 September 2023: £28.3m), a reduction of £4.9m over FY23 after taking account of increased efficiency related capital expenditure and shares purchased to ensure no dilution from LTIP awards.

“The group continues to strengthen its financial position, which provides funding capacity to support its strategic growth objectives.

“These include both investment to further enhance operational capabilities as well as value-accretive acquisitions, from a developing pipeline of opportunities.”

Company-compiled analyst consensus for FY24 is for revenue of £244.3 million and for underlying operating profit of £26.5 million.