Renold upgrades 2022 expectations as order book hits record high
Renold, a supplier of industrial chain and power transmission products, upgraded its expectations for 2022 on Monday amid a record high order book.
In an update for the four months to the end of July, the company said the strong momentum seen in the fourth quarter of the last financial year has been maintained in the new year, resulting in the continued recovery of revenues and order intake.
"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," it said.
Order intake in the four-month period rose 61.3% from the year before to £79.7m, at constant exchange rates. Excluding the recently-announced £11.0m long-term military contract, order intake was up 39.1%, or 46.7% at constant exchange rates.
Renold said current order books at £70.5m represent a record high. Meanwhile, sales revenue was 13.6% higher at £62.5m, or 19.9% at constant exchange rates.
The company said net debt remained stable at £18.5m as at 31 July, despite an increase in working capital due to the improved activity levels and much lengthened supply chains.