Manchester industrial chain and power transmission firm Renold plc said in a trading update on Monday that “volume demand during the early part of FY2026 has been slightly below prior year levels” with some customers deferring procurement decisions.
Renold said on June 13 it agreed to a £186.7 million takeover offer from MPE Bidco, a vehicle indirectly controlled by US private equity firm MPE Partners.
The offer was worth 82p per Renold share in cash, a premium of 50% to the closing price per Renold ordinary share of 54.6p on May 19, 2025, the last business day prior to the commencement of the offer period on May 20.
On Monday, the Manchester firm said: “The Renold Group performed strongly throughout FY2025, 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 the Renold Group’s employees across the world.
“Renold continues to increase its capabilities and international footprint, both organically and through acquisition, which the Renold Directors believe positions the business well to address the needs of a broad customer base.
“Renold’s clear and effective strategy has delivered further progress and strong results in FY2025, but the Renold Directors remain mindful of the additional challenges presented by the current economic backdrop.
“The Renold Group has a broad international footprint and highly differentiated product offering, and as such has been able, using supply chain flexibility and price rises, to mitigate a large part of the direct cost headwinds presented by current changes to tariff regimes.
“Overall, volume demand during the early part of FY2026 has been slightly below prior year levels, with some customers deferring procurement decisions in response to the heightened level of uncertainty affecting a number of the Renold Group’s geographic and sector end-markets.
“During the first quarter of the financial year ending 31 March 2026, the impact of reduced Renold Group sales volumes was largely offset by pricing and the Renold Group will take further pricing action to meet additional cost increases if necessary.
“The Renold Group is also seeking to manage the effects of currency movements and particularly the weaker US dollar, which if the current exchange rate is maintained for the remainder of the financial year, would represent a translational headwind to earnings.
“The Renold Directors 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, the Renold Group is focussed on maximising its efficiency and ensuring it can respond effectively to changing conditions, in order to maintain strategic momentum.”