Renold plc
Final results for the year ended 31 March 2025
(“Renold”, the “Company” or, together with its subsidiaries, the “Group”)
Record trading performance, significant earnings growth and strong cash generation
Renold (AIM: RNO), a leading international supplier of industrial chains and related power transmission products, is pleased to announce its audited results for the year ended 31 March 2025 (“FY25”).
Financial highlights
| £m | 2025 | 2024 | Change | Change (constant currency)1 |
| Revenue | 245.1 | 241.4 | +1.5% | +3.9% |
| Adjusted operating profit | 32.2 | 29.7 | +8.4% | +11.4% |
| Return on sales | 13.1% | 12.3% | +80bps | +90bps |
| Adjusted profit before tax | 24.3 | 22.1 | +10.0% | |
| Net debt | 44.8 | 24.9 | ||
| Adjusted earnings per share | 9.0p | 7.8p | +15.4% | |
| Additional statutory measures | ||||
| Operating profit | 28.5 | 30.5 | -6.6% | |
| Profit before tax | 20.6 | 22.9 | -10.0% | |
| Basic earnings per share | 7.6p | 8.3p | -8.4% |
- Revenue of £245.1m, increased 1.5% year on year, up 3.9% at constant exchange rates (FY24: £241.4m)
- Adjusted operating profit, £32.2m (FY24: £29.7m), up 8.4% at reported rates and 11.4% at constant currency. Return on sales 13.1%, up 80bps
- Net debt at 31 March 2025, £44.8m, increased in the year following the acquisition of Mac Chain (£23.8m), and the Cardiff property (formerly leased)
- Year end net debt 1.0x adjusted EBITDA (31 March 2024: 0.6x)
- Adjusted EPS up 15.4% to 9.0p (FY24: 7.8p); Basic EPS 7.6p (FY24: 8.3p)
Business highlights
- The Group delivered record adjusted results, with both Chain and TT divisions performing strongly, despite continued market uncertainty.
- Constant currency order intake of £250.1m (FY24: £227.5m), increased 9.9%, 7.5% when currency headwinds are taken into account.
- Closing order book at £83.0m (FY24: £83.6m) remains strong.
- Acquisition of Mac Chain in September 2024, for US$30.9m, increases the Group’s access to the Western US and Canadian markets, while also increasing the Group’s share of the forestry chain market. The integration process is progressing to plan.
- On 25 June 2025 the Group announced the acquisition of Ognibene s.p.a., a leading supplier of transmission chain in Italy, for a cash consideration of €10.0m. The acquisition is expected to be immediately earnings enhancing.
- Increased capital investment of £16.4m (FY24: £9.0m) during the year has improved the efficiency, productivity and capability of the Group’s manufacturing locations and includes the purchase of the Cardiff property and the Valencia rebuild.
- In October 2024, the Group manufacturing facility in Valencia was impacted by a major flood; rebuilding work is progressing well, with customer service levels fully recovered.
1 See below for reconciliation of actual rate, constant exchange rate and adjusted figures
Robert Purcell, Chief Executive, commented:
“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 by our employees across the world. Renold continues to increase its capabilities and international footprint, both organically and through acquisition, which we believe positions the business well to address the needs of a broad customer base.
Our clear and effective strategy has delivered further progress and strong results in FY25, but we remain mindful of the additional challenges presented by the current economic backdrop. The 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 FY26 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 our geographic and sector end-markets. During the first quarter, the impact of reduced Group sales volumes was largely offset by pricing and we will take further pricing action to meet additional cost increases if necessary. We are 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.
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 of the current financial year. Against this backdrop, we are focussed on maximising our efficiency and ensuring we can respond effectively to changing conditions, in order to maintain our strategic momentum.”
Offer from MPE Bid Co (“MPE”)
On 13 June 2025, MPE announced a firm intention to make an offer to acquire the entire issued share capital of Renold, at a price of 82 pence per share, which has been recommended by the Board (the “MPE Offer”). As at 9 July 2025, the MPE Offer remains subject to a number of conditions, including approval by the Company’s shareholders and consequently there can be no certainty that a transaction will complete. Should the MPE Offer be successful, the transaction is expected to complete during FY26.
Meeting for analysts and institutional investors
A virtual meeting for institutional investors and analysts will be held today at 9.30am BST. If you wish to attend this meeting please contact renold@investor-focus.co.uk or call Tim Metcalfe of IFC Advisory Limited (020 3934 6632) before 8.45am to be provided with access details.
Reconciliation of reported and adjusted results
| Revenue | Operating profit | Earnings per share | ||||
| 2025 £m | 2024 £m | 2025 £m | 2024 £m | 2025 pence | 2024 pence | |
| Statutory reported | 245.1 | 241.4 | 28.5 | 30.5 | 7.6 | 8.3 |
| Amortisation of acquired intangible assets | – | – | 1.6 | 1.0 | 0.8 | 0.5 |
| Acquisition costs | – | – | 1.6 | 0.5 | 0.8 | 0.2 |
| – Deferred tax triggered on acquisition | – | – | – | – | – | (0.5) |
| Impact of Valencia flood | – | – | 0.4 | – | 0.2 | – |
| – Tax impact of Valencia flood | – | – | – | – | (0.5) | – |
| Assignment of lease and cost of closed sites | – | – | – | (2.3) | – | (1.1) |
| Unwind of fair value inventory uplift on acquisition | – | – | 0.6 | – | 0.3 | – |
| – Tax on unwind of fair value inventory uplift | – | – | – | – | (0.1) | – |
| Release of dilapidation provision on acquisition of leased property | – | – | (0.5) | – | (0.2) | – |
| – Tax on release of dilapidation provision | – | – | – | – | 0.1 | – |
| – Tax on assignment of lease and cost of closed sites | – | – | – | – | – | 0.4 |
| Adjusted | 245.1 | 241.4 | 32.2 | 29.7 | 9.0 | 7.8 |
| Exchange impact | 5.7 | – | 0.9 | – | 0.2 | – |
| Adjusted at constant exchange rates | 250.8 | 241.4 | 33.1 | 29.7 | 9.2 | 7.8 |