Renold Share Discussion Threads

[mctmct] 18/6/2012 17:19

Some director buys that attracted attention in the FT ... "Investors take note".

[rburtn] 09/6/2012 16:09

I'm surprised that there has not been a squeak from shareholders since the recent report.

It's now seven long years since this company saw fit to return anything to its owners. Not only that, a double whammy has destroyed their capital on a heroic scale. The only thing that has risen has been the amount our senior employees have decided to pay themselves for the privilege. It does not help to know that if/when the latter do declare the sort of return that any self-respecting enterprise should for its owners, they expect to do this in exchange for lottery style windfalls.

Unfortunately, Renold is not alone in having its executive sideline its owners. Wherever the bureaucrats do this, a collapse is assured. This applies whether it be the politburo forgetting who they should be representing in a communist state, the ruling elite forgetting the interests of the mob despite being heavily out-numbered by them, or a business in which the owner is not vigilant as to the actions of his employees and the till. Unfortunately, the injustices can go on for a very long time before retributive action.

One thing I am totally unconvinced about, is that the recent profits are better left in management hands rather than ours as dividends.

The institutional investors have all been asleep at the wheel largely I suspect because corporatism has taken control of their businesses as it has in the companies in which they invest. They are in dereliction of duty for their investors and in an efficient market - not one bribed by tax concessions - they would eventually run out of mandates.

Vince Cable is supposedly trying to do something about executive pay, and I concede that rno may not be the worst offender, well let us all make a suggestion - where a contract of employment exceeds a certain threshold, and this could be dependent on a number of criteria, shareholders should insist, and it should be inscribed in law, that the contract must be let through open tender with independent shareholder scrutiny. That should sort out the competition to pay the most which currently obtains and make the blighters pay attention to us. I wrote to him in such terms, I wonder if anything will be done.

[penpont] 29/5/2012 17:36

IC comment:
Renold talks the torque
By Lee Wild, 29 May 2012

Renold lost a quarter of its value after warning in April that growth in Europe had been hampered by economic uncertainty and a strong Swiss franc. That the industrial chains and gearbox maker still doubled underlying operating profit to £14.1m last year suggests the mild recovery since has further to go.

Higher sales and a £1.5m reduction in costs at the core chain division were largely responsible for the strong performance. In fact, every extra pound of revenue generated in the period created an extra 41p of operating profit, and operating margin jumped to 6.7 per cent from 3.7 per cent. That's just 30 basis points shy of pre-recession levels and management want double-digits next year.

Back-office restructuring will save £1m this year and £1.8m annually from 2013-14. Meanwhile, operating margins at gearbox and couplings division Torque Transmission are at a record 16 per cent. The unit generated a quarter of group sales, but 47 per cent of profit, driven by demand from the metals industry and from quarrying and mining. A number of mass transit tenders in Europe and North America are also expected to convert into contracts in the coming months.

Expect adjusted pre-tax profit of £15.2m and adjusted EPS of 5.4p in 2013, says broker Arden Partners (from £9.7m and 3.6p in 2012).


IC VIEW:

Renold is pushing the less cyclical Torque business, and rapid growth in India and South East Asia should offset any weakness in Europe. On a forward PE ratio of six, a big discount to the sector, the shares look cheap. Buy.

Last IC view: Good value, 29p, 15 Nov 2011

[penpont] 29/5/2012 09:41

Added this am on what look like good results and encouraging outlook.

[puffintickler] 18/4/2012 13:18

envirovision

We would all appreciate it if you would refrain from posting ill informed questions.

The CEO did not "flog" any shares he just made a transfer between his personal wolding and his pension nfund.

[envirovision] 18/4/2012 11:24

I suppose there was a reason the ceo flogged of millions of shares at what was it 20p or something recently ?

[gleach23] 17/4/2012 21:56

darlocst...they did stress that europe sales "were more than offset" by the ROW sales which, when growing at "above double digit levels", bodes well...a point they then reiterated in the final para

[dozey1] 17/4/2012 14:07

Down 9.6% now. Can't see why it should have been caned like this. Such volatility will reinforce stale bulls, with little to shift the price upwards until (and if) they post some actual very good figures.

[darlocst] 17/4/2012 09:18

H2 lower revenue than H1 doesn't bode well for 2013 where revenue was forecast to increase by 7% and EPS to increase by 50%.

Europe is 40% of group sales so I'd say forecasts for 2013 have to be revised downwards (which of course does give some scope for upside if the eurozone starts to improve in the over the next six months).

Can't see much upside over 40p for now, given debt & pension liabilities + eurozone sales.

[rivaldo] 17/4/2012 07:12

Excellent trading update - guaranteed 4.1p or so historic EPS to 31/3/12 (i.e around 2.3p adjusted EPS in H2 alone, boding well for this year):



Gearing in particular is nicely reduced. RNO's global reach is the attraction here and is keeping things bubbling whilst Europe sorts itself out.

EDIT : hmmm...short-termers exiting, or have I missed something?!

[hardhatboon] 12/4/2012 19:41

Very quiet on this thread...considering statement due and things in right direction...

[limit up] 20/3/2012 16:24

rivaldo
i am looking for this stock to be back on the dvd list this year,which will also help on a re rating..long term here,good to be in profit!!

[rivaldo] 19/3/2012 10:20

New recent highs now - and on decent volumes too.

I suppose Bob Davies' share transactions are primarily tax-driven, and ours is not to know why except to assume that he's trying to shelter anticipated gains in the most efficient fashion.

[puffintickler] 19/3/2012 09:03

Probably some tax reason, but frankly it is not worth trying to work it out. As there is no net buy or sell it is not worth a mention.

[fishbournetrader] 19/3/2012 08:54

How confusing can these RNS be? The one today seems to be the official confirmation of the notification put out on Friday, except that today's one does not state which way the transfer went. Based on Friday's, Bob Davies has bought 150,000 shares from his own pension plan. Why would he do that?
As the share price is up today, the market does not seem to mind.

[rivaldo] 19/3/2012 08:13

Good start to the week....

[puffintickler] 17/3/2012 19:26

He did not buy any in fact

The shares were purchased from Mr Davies' Self Invested Pension Plan managed by Alliance Trust Savings Nominees Limited. There is therefore no change in his beneficial interest, including the beneficial holdings of his connected persons, following the transaction. His beneficial interest before and after the transaction is set out below:

[henryatkin] 16/3/2012 16:07

So, the boss buys 150,000 shares @ the current share price a few weeks before the results. Looks good.

[hardhatboon] 15/3/2012 13:24

Steve M - thanks. I'm a noob on this so appreciate the help.

[stevemarkus] 14/3/2012 10:49

If you look at last years announcements, the Pre-Close Trading Update was on 14th April, with full year results on 31st May. Suggest you take a look at www.investegate.co.uk - easy enough to find. As for share price movements, depends on what's in the statement and what mood the market is in. So anyone's guess.

Cheers,
Steve.