Renold Maintains Positive Momentum, Expects to Exceed Market Expectations
Why we think this is good
The trading update from Renold plc indicates the company has maintained positive momentum, with adjusted operating profit and EPS expected to exceed current market expectations. This is a positive sign, as the company has reported a third consecutive year of record performance. However, the update also highlights potential headwinds from the evolving tariff backdrop, which could impact the company's operations. Overall, the results appear to be solid, with growth in revenue, profit, and a robust cash position, but the uncertain external factors temper the positive sentiment.
Key Points
- Adjusted operating profit and EPS expected to exceed market expectations
- Revenue increased 3.8% at constant exchange rates
- Robust cash conversion, with net debt position increasing due to growth investment
- Potential headwinds from evolving tariff backdrop, impact difficult to predict
Summary
Renold plc, a leading international supplier of industrial chains and related power transmission products, has provided a trading update for the year ended 31 March 2025. The Group expects to report adjusted operating profit and EPS ahead of current market expectations, marking a third consecutive year of record performance. Revenue increased by 3.8% at constant exchange rates, and the company maintained robust cash conversion. However, the Board is closely monitoring the evolving tariff backdrop, which could impact the company's operations.