Renold Share Discussion Threads

[loglorry1] 01/5/2024 07:32

£13m over six years although nice doesnt' seem material to a company doing £241m in sales a year.

[swiss paul] 01/5/2024 07:08

Contract Win



Renold (AIM: RNO), a leading international supplier of industrial chains and related power transmission products, is pleased to announce that Renold Couplings, part of the Company's Torque Transmission division, has been awarded a contract to manufacture flexible couplings for Batch 1 of the Canadian Surface Combatant ships for the Royal Canadian Navy, worth £10.6 million. This contract, together with other military work recently awarded, means that Renold's military order book has increased by £13.1 million, over recent months.



The contract, to be delivered over the next six years is for flexible couplings, which are an important component of a ship's propulsion system and form part of Renold's Hi-Tec range of couplings, which are supplied worldwide for large marine and industrial projects.



The Canadian Surface Combatant ships will be built by Irving Shipbuilding Inc in the Halifax Shipyard, Nova Scotia. The contract award represents a significant extension of the Group's collaboration with Canada in supplying flexible couplings for naval vessels. The Canadian Surface Combatant will replace the Halifax class warships which also used Renold Flexible Couplings. Manufacture of the flexible couplings for the Canadian Surface Combatant is anticipated to commence mid-2024 in Renold's Cardiff facility.


NIIICE

[tiswas] 30/4/2024 15:56

50p uncrossing. Yeah!!!!!!!!!!!!!!!!

[phg87] 30/4/2024 12:57

Jumped in today Jimmy, so I hope it does do jump above!

[jimmywilson612] 30/4/2024 10:00

Will it break through 50.....

[this_is_me] 26/4/2024 08:10

After the march dip the share price is seriously on the up again.

[thirty fifty twenty] 18/4/2024 16:52

thank you melody9999 for taking the time to give such a detailed summary. the underlying biz seems very solid and i think undervalued, then there is the lure of one off military contracts, and , to me, it seems an ideal biz to be part of a larger group.

All IMHO, DYOR and BoL,
RNO is in my top 5 hldgs

[c3479z] 18/4/2024 16:28

greenknight
his thoughts were that turnover and profit growth would be hard to come by, I think,

[greenknight1] 18/4/2024 13:43

Excellent summary - thanks Melody. Very happy here.

[melody9999] 18/4/2024 13:36

Some notes from the meeting yesterday:

Robert very upbeat about the company's prospects. feels it is undervalued. His and Jim CFO management style is cautious and conservative - safe pairs of hands.

Strategy is to continue to focus on what they do best. Increase share in existing market. Customers are very sticky which is good news; but also means that new customers take a long time to acquire. Organic growth not likely to be significant.

They have good pricing power as demonstrated in the pandemic when they increased margins as well as passing through rising costs.

No customer represents more than 3% of total revenue. Production risk mitigated as they can flex manufacturing between their different factories in China , India and Germany.

Capex is likely to increase due to robotics kit. But this represents a great ROI / cost reduction opportunity.

Margins at 12% are conservative – Robert targeting mid teens

We may get an RNS soon re military contracts. Total revenue £13.6M? Type 26 frigates.

Currency – US$ the largest drag.

Acquisitions – refinancing agreed in May 23 so funds have been available for some time. Company made bullish noises about future acquisitions – and indications that pipeline was looking good. Suspect things will happen but will take time. Apart from increasing customers and scale, this can also bring product / process improvements.

Pension – under control and benefiting from higher interest rates.

I am happy with my investment and hopeful they may attend Mello next month to deliver their message to a larger audience.

[greenknight1] 18/4/2024 13:13

What is the reasoning behind this?

[c3479z] 18/4/2024 12:38

Boxall thinks it could be a value trap...
is this a widely held view on this board?

[davidosh] 18/4/2024 09:35

melody9999.....Well done for organising and hopefully Renold will join us at Mello2024 next month too.

[melody9999] 18/4/2024 08:22

Meeting at RNO yesterday was positive. I'll post some detail later.

[this_is_me] 17/4/2024 15:47

More than recovered the March drop.

[greenknight1] 17/4/2024 15:38

Lovely move today. Still further to go. So undervalued here.

[davidosh] 17/4/2024 15:34

The share price is on fire this afternoon....Is that linked to the Signet investor site visit I wonder?

Any reports from on site?

[bubloo] 15/4/2024 21:24

some funds who brought in 20's selling as they have virtually doubled. hence Renold has high weighting in these funds. hence top slicing. expect some more selling before it settles in the mid thirties

[sausage7] 15/4/2024 20:13

So an interesting and encouraging review of Renold on BASH this evening. The poll of viewers came out at Buy 72% Hold 17% Avoid 9% Sell 2%. With such a Buy % a point not raised was who is selling? Intriguing. A company in strong recovery.

[greyingsurfer] 15/4/2024 15:26

Plus the pension deficit is coming down. Not sure what it was in 2007.

But resumption of dividends, when it happens, will potentially shift the valuation. I saw posted on X this morning an unattributed set of forecasts which showed a dividend being paid in 2025. If correct thats not far away.

[sausage7] 15/4/2024 14:36

Have signed up, thanks for the note DD

[davidosh] 15/4/2024 13:48

Now the trading update is released Renold will be reviewed on the BASH this evening

Mello BASH (Buy, Avoid, Sell or Hold)



Do join

[greenknight1] 15/4/2024 12:16

Revenue will be grown via "value accretive acquisitions". As long as they maintain margins through integration, this will continue to grow nicely.