Renold Share Discussion Threads

[jailbird] 19/11/2020 17:43

They have sold less than 1%Still hold just 14% of share capital It is just a slicing of their holding !Not worried at all

[stockjunkie11] 19/11/2020 17:14

IMO RNO RIP
pep talk never helped to increase the value :)
I'm out, help yourself

[mesquida] 19/11/2020 17:10

But M&G are clearly not impressed, let us hope that their recent sales are only a top slicing exercise , and they do not plan to sell the residual holding down completely.

[jailbird] 19/11/2020 16:30

I have added twice today Decent volume today and decent chunky buys too Anticipation of a recovery has started

[bbarry8] 11/11/2020 08:51

Resilient earnings showing benefit of multi year restructuring, good cashflow performance, improving order book. Once order book recovers fully expect this will trade at multiple the current levels. Easy 2 or 3 bagger imo

[wigwammer] 11/11/2020 07:51

But that's not a very well substantiated comment, when EPS post retirement costs was 2.9p last year. In all likelihood, without covid, we would be looking at a high quality business trading at sub 3x earnings this year. Little wonder therefore that historically, RNO has traded at many multiples of the price we see today - and will in time return there again.

[pugugly] 11/11/2020 07:32

Debt reduced but still (imo) a company working for pensioners rather than shareholders - No dividend again

" The Group has a number of defined benefit pension schemes (accounted for in accordance with IAS 19R 'Employee benefits'). During the period agreement was reached with the UK pension trustee to defer contributions (£2.8m) to the UK pension scheme. This delays agreed contributions, now payable between April 2022 and April 2027, but maintains the consistent cash requirements of the Group's schemes. Cash pension costs are sustainable, having remained consistent at approximately £5m for several years, and are expected to remain broadly stable over the longer term. The Group's retirement benefit obligations increased from £97.6m (£80.2m net of deferred tax) at 31 March 2020 to £115.6m (£94.7m net of deferred tax) at 30 September 2020.

Continuing declines in corporate bond yields, which determine discount rates, have increased the deficits in the key UK and German schemes. In the UK, discount rates falling to 1.55% (31 March 2020: 2.4%) and the CPI inflation assumption increasing to 2.2% (31 March 2020: 2.0%) has the effect of increasing the present value of future liabilities by £29.2m. Strong asset returns helped to mitigate the impact of change in the financial assumptions, with the net UK deficit increasing by £16.0m to £84.0m.

Pension liabilities in non-UK schemes increased by £2.0m to £31.6m. "

[w1lbur01] 29/10/2020 17:42

Heathy volume today

[mesquida] 29/10/2020 16:48

Interesting mid-day reversal here, and a welcome uplift in volume after some very quiet days. Are investors perhaps finally waking up to what could be a very profitable recovery story.

[wigwammer] 16/10/2020 08:08

I agree. Whether it's the debt or pension, doesn't really matter - they are reducing their deficits, leaving the company increasingly in the hands of shareholders. A £10m+ reduction in debt is highly meaningful for a £26m valued company. Normalised turnover around £200m, with opportunities to grow, and targeted 10%+ op margin. I think it will be a very nice one to tuck away.. ATB :)

[jailbird] 16/10/2020 07:53

Low key update Net debt decreasing .Pension contributions have been deferred until March 2021I guess the idea is reduce debt , hope for further recovery and then have the money to begin repaying the pension again . Once the debt has been paid off they maybe in a position to start reducing the deficit One to tuck away

[luzley] 09/10/2020 21:57

A few quick comments..
Yes the pension deficit is considerable but the shareprice is now so low that the risk/reward ratio is favourable IMO (the PER is just 4 based on y/e March2020)
Given that the CAPEX intensive 3yr restructuring is now complete, directors have been big buyers, it has been cash generative AND profitable in first three months to July 1st and management is confident it is managing Covid effects.....I think the upside is very probable. I was surprised at the end of last week that, for the first time in my experience with any share, the bid price for 'quantity' was significantly HIGHER tha the bid for smaller lots.....these were definite offers not indicative. Interesting.
Quality stock with wide range of product applications.

[thirty fifty twenty] 09/10/2020 07:25

Luzley - thanks for the posts. could you help with a couple of questions please:

1 - my notes say pension deficit payments are 6m, but then they also say 3m. not sure why i have 2 figures - do you know which is correct?

2 - have they stated their position re Gvt CASH? i.e. how many staff were furloughed? do they have significant deferred tax or VAT

3 - i am assuming you are a sizeable investor, so as a chartist, I am a little surprised that your recent buying and even that of the CEO has not caused a larger price rise in recent weeks. the small cap market is quite bullish at the mo and in my experience trying to get stock in these recoveries is difficult withour forcing the price up. to me, so far, it looks like there are still a fair number of people will to sell RNO at these prices.

i think you are right about the long term potential with RNO but i'm hesitant to start investing until have more certainty that the sellers are cleared. many thanks if you can helpmwith above

All IMHO, DYOR + BoL
disc: RNO - no position

[luzley] 08/10/2020 08:47

Certainly not hit the radar as you say mesquida. I'm quietly optimistic that the sheer diversity of applications for 'quality' products will be the deciding factor. Many organisations are now assessing quality as opposed to cost when poor product downtime is taken into consideration. Renold has the experience and quality alongside long term resilience. Excellent outlook IMO.

[mesquida] 08/10/2020 08:06

Good post, Luzley , this one seems to have slipped off the radar , so the forthcoming trading update could well surprise many people .

[luzley] 07/10/2020 20:54

This has all the classic signs of a turnaround now that 3 yr restructuring and streamlining is complete. All capital costs have now fed through so bottom line should recover quickly. The diversification of Renolds customer base and broad fields of application should start to prevail and broker target of 30p seems realistically achievable. The consistent purchases by management and directors is encouraging and a 'follow the money' style of investing usually rewards the patient. Happy to hold here having invested from the reversal and topped up on weaker days.....accumulating nicely below 12p purchase level and looking for 100%+ return over next 12-15 months. I expect a trading update confirming continued cash generation within the next 7 days. Turnaround becoming evident, new applications and moving forward nicely from Coronavirus lows.

[mesquida] 22/9/2020 15:59

Another sizeable purchase by Chief Exec. Surely investors will soon begin to take notice.

[mesquida] 21/9/2020 20:48

Interesting, Chief Exec buys 200k just before half year ends ( 30th September ) with trading update normally in mid October. In terms of a signal what more does the investment community need ??? !!!

[donmac101] 18/9/2020 12:12

Stockjunkie gies a break.you must be a disgruntedled ex employee or maybe lost a few quid in the past

[stockjunkie11] 18/9/2020 10:49

Don't forget the very weak position of RNO in the market over the last years.
While they keep on recovering for years now, all competitors are winning customers.
Covid has nothing to do with this.

@spooky : you are dammmm right in your analysis.

Focus on 'polished' stats or focus on reality, your choice.

Good luck.

[luzley] 18/9/2020 10:20

Have DTR but the streamlining cost is now under the belt and I see profits beginning to cascade to the bottom line now. I concede on your points which I have evaluated but I'm still left with the conclusion that the breadth of industries covered by Reynolds means that ignition in any of the sectors would play into their hands. I'm frankly surprised that the oversold position hasn't elicited a bid given cash generation during the Covid aberration. This share should show sharp recovery initiated in the Far East and rolling westward as industry is accelerating there already. On a separate level I genuinely believe that herd immunity to C19 is an escalating process already approaching its tipping point. This has followed my predicted (amateur but informed and educated) progress to date. Time will tell but I think the outlook is far rosier than we are led to believe at present.

[spooky] 18/9/2020 08:58

Not sure i would disagree with your conclusion but you may want to go away and take a look at the debt, pension fund deficit and the fact that current year earnings will not leave them on a PE of 3.

[luzley] 18/9/2020 07:49

WOEFULLY UNDER-RESEARCHED, oversold and under the radar. Bought a nice chunk here sub 9p. Renold has completed a 3 year streamlining exercise and its products are universally used and applicable to all sectors. DYR as recent earnings would put this on a current P/e of just 3. Given that it has been profitable during the first quarter during Covid this has automatic multibagger potential. Time to light up this thread which is unbelievably dormant!! Amazed........

[jailbird] 06/8/2020 08:48

This news will filter through eventually "China's Manufacturing Recovery Picks Up the Pace BEIJING--An official gauge of China's factory activity expanded at a faster pace in July, as improving demand inside and outside the country kept the recovery of the world's second-largest economy on track.": https://uk.advfn.com/stock-market/stock-news/82966929/chinas-manufacturing-recovery-picks-up-the-pace

[jailbird] 16/7/2020 10:47

Probably next month