LONDON (ShareCast) - (Sharecast News) - Renold reported record trading for the year ended 31 March on Wednesday, with earnings and revenue rising on strong demand, strategic acquisitions and disciplined pricing.
However, the AIM-traded industrial chain manufacturer also warned of a softer start to the current financial year, citing weaker volume demand and continued macroeconomic uncertainty.

Revenue rose 1.5% to £245.1m, or 3.9% at constant currency, while adjusted operating profit climbed 8.4% to £32.2m, lifting return on sales by 80 basis points to 13.1%.

Adjusted earnings per share increased 15.4% to 9.0p, although basic earnings slipped to 7.6p per share, from 8.3p, due to one-off items.

Order intake grew 9.9% at constant currency to £250.1m, while the closing order book remained stable at £83.0m.

"I am pleased that the group performed strongly throughout the year, 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," said chief executive Robert Purcell.

The company completed two acquisitions during the year.

Mac Chain, purchased for $30.9m in September, expanded Renold's footprint in North America and the forestry chain market.

More recently, the group acquired Italian transmission chain specialist Ognibene for €10m in June - a deal expected to be immediately earnings accretive.

Capital investment also increased to £16.4m, including the purchase of its Cardiff facility and the rebuild of a flood-hit plant in Valencia.

Despite the strategic gains, Renold warned of a more cautious start to the 2026 financial year.

"Volume demand during the early part of 2026 has been slightly below prior year levels, with some customers deferring procurement decisions," Purcell said.

"We 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."

He added that pricing initiatives and supply chain flexibility had helped mitigate cost pressures and tariff changes, and that further action would be taken if necessary.

A weaker dollar also presented a potential earnings headwind if current exchange rates persisted.

The update came as the company remained in the process of a recommended takeover by MPE Bid Co, which offered 82p per share.

As of 9 July, the offer remained subject to shareholder and regulatory approvals.

If successful, the deal is expected to complete in the current financial year.

Reporting by Josh White for Sharecast.com.

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