Renold Share Discussion Threads

[dozey4] 04/12/2024 18:54

I would certainly welcome any evidence that the excessive ‘incentives217; benefit shareholders. A question foe the Chairman. (I hold)

[hopeful holder] 04/12/2024 13:55

Stocko report a normalised eps at 7.61..So that puts us on a pe of less than 6.5I'm unsure of what the next set of drivers are for this companies share price other than some decent contract wins and I am expecting another acquisition, perhaps 2,in the next 12 months.I don't think a pe of 10 or more is a stretch..We had a run up to 65 pence or so a little while ago as RNO was touted around some share discussion boards and Vox etc. Perhaps another round of awareness as to the potential here is due?This is where you hope directors incentives are helpful in restoring awareness and market value to this share,What are other peoples views?

[essentialinvestor] 20/11/2024 20:15

What does not tend to get discussed in tarrifs benefiting US manufacturing, is where the additional skilled and semi-skilled workers are to fill these jobs.

Just look at what Boeing has needed to agree to in their recent US strike settlement.

This before proposed mass deportations takes place from 2025.


Thanks for the confirmation re manufacturing, 3 US sites from what I can see.

[pj84] 20/11/2024 19:08

I posted this following a similar debate earlier in the year in post 1884 0n 18 July 24

"Following the debate on the dilutive share options and the effect on the eps, I can see from note 5. to the results that it shows the basic eps as 8.3p and the adjusted eps as 7.8p and this drops further to 6.9p after taking account of 27,488,748 of dilutive share options.

I am not against nil paid options so long as they are tied to demanding performance criteria.



From item 7 of the directors’ remuneration report for 2023 the CEO was awarded 100% of his bonus entitlement and 100% of his share options vested giving total remuneration of £1,244k which was very high (and higher than I would want) and equally for 2022 the bonus and options fully vested giving remuneration of £1,119k. For the five previous years no options vested, and no bonuses were awarded apart from 2019 when a 20% bonus was awarded and the remuneration during the 5 years ranged from £345k to £434k.

Based on the results and share price performance I expect when the detailed accounts are published that again a 100% bonus and 100% of share options will vest.
From the 2023 accounts the CEO had 8,941,529 share options (with 7,106,667 yet to vest) and the FD had 2,292,667 (none yet vested) leaving another 11,769,011 or just over 50% of the 23,003,207 which presumably are held by staff.

Based on the results I would expect 2,066,667 to vest for the CEO and 666,667 for the FD this year.

I would prefer the options for the CEO and FD to be lower but despite that I still feel the shares are undervalued and I am more than happy to continue to hold and am not tempted to sell.

[elsa7878] 20/11/2024 18:46

If anyone has bothered to look into the director remuneration and share option scheme you would never buy another share. Run for their benefit and not yours. Scandalous.

[pj84] 20/11/2024 18:37

Just listened to the investor presentation and Renold continues to be a very strong hold for me and I believe it is undervalued and today's price action was an overreaction which coincided with a market wide down day.

They talked about, the as yet unknown Trump Tariffs and they aren't concerned due to the wide geographical spread of their businesses and in particular their flows from China to the US are a very small part of the overall business which already have high tariffs and as mentioned above they see the recently acquired Mac chain business with a presence in the US to offer opportunities depending what Trump finally decides.

They are keen to continue their acquistion strategy with the next possible acquistion in Europe and they expect the acquisitions to enhance margins towards the mid-teens as their central costs become a smaller proportion of the business.

They don't have a set policy to increase the dividend and will take into account other uses of the cash at each year end but it seems likely there will be a year end dividend at the same or slightly higher level.

[prokartace] 20/11/2024 15:16

Sausage, TBH I am very concerned about the overall market which is making me cautious on any investments

[loglorry1] 20/11/2024 13:02

The last big acquisition was a US firm now within the group.

[essentialinvestor] 20/11/2024 13:01

Do they manufacture in the US?, potential Trump tariffs the market may be focused on?.

[sausage7] 20/11/2024 12:58

Buy now poker while stocks last! Agree with the comments, very cheap here, management doing a decent job in a lacklustre environment and the new acquisition will start to contribute. Notice their margins have improved. This is another example of the neglected UK smaller company sector, crazy low valuations.

[prokartace] 20/11/2024 11:10

Having sold out at 57p I am hoping for 45p to reinvest

[pj84] 20/11/2024 10:48

Agree and although the net debt increased as a result of the the Mac Chain acquisition if you strip out the purchase price £42.2 - £23.3 the underlying net debt fell to £18.9m from £24.9 at the full year and £28.3 at the previous half year.

[davebowler] 20/11/2024 10:28

CAvendish-
The group has posted resilient results in some tough markets, while also posting continuing improvements in operational efficiency and executing on its acquisitive activity through the purchase of Mac Chain in the period. Management reiterates that it is on track to achieve existing underlying forecasts, although news that the Valencia facility has been affected by recent flooding will result in short-term costs to be recognised as exceptional items in FY25, with insurance expected to recover costs in FY26. No change therefore to underlying forecasts and we maintain our TP at 86p, which looks conservatively pitched, with the shares currently looking very attractive and cheaply rated on a FY26 P/E of 6.4x with considerable scope for a well-deserved rerating.

[swiss paul] 20/11/2024 08:37

forgot it had a place in Valencia £1mill hit. Just hope that all employees are ok

[thirty fifty twenty] 19/11/2024 15:44

i'm hopeful the price weakness pre results gives a chance of a lift if there are no surprises. fingers crossed the new acquisition is settling in well and mgt focus on cost efficiencies can compensate for any weakness in global trade. at least with c.80% overseas they not going to be clobbered by UK budget and NI issues. time will tell.

All IMHO ann bol all,
RNO is in my top 5 hldgs

[hopeful holder] 11/11/2024 15:54

Up around 10% in 2 weeks

[mickeyb] 11/11/2024 13:05

Looks like some people know something, maybe news of another big contract.

[hopeful holder] 28/10/2024 15:00

Uncertainty before the budget. Once that's out the way and we know what damage is done,I do expect this to pick up again.I keep topping up and feel at his price, the upside is considerable.Thing is, when will the market recognise this or recover.?

[tiswas] 28/10/2024 13:17

Looking very cheap now. I wonder if any overseas competitors are monitoring. A 50% premium to the current share price would only just take you above this year's highs and still be a single digit forward p/e.

[swiss paul] 24/10/2024 09:34

Still curving lower

[sausage7] 03/10/2024 07:52

Noted WJ, thanks

[wjccghcc] 03/10/2024 07:30

Canaccord have been selling a lot of AIM shares recently, probably ahead of the budget.

[sausage7] 03/10/2024 07:23

Cannacord is the recent seller as just announced , they have dumped 5% of the company recently, no wonder the price has been weak.

[lammylover] 03/10/2024 06:29

Holding RNS 3/10/24. Cannacord Genuity reduce holding from 9.9% to 5.0%. Clearly there has been a big seller for a few days and impact on share price driving it down to around 50p. Hopefully now seller cleared, should see share price recover towards 60p.
I've been adding around 51p, as see good value here.