Renold Share Discussion Threads

[whittler100] 04/6/2024 06:08

The 15th April TU has FY results for 17th July

[davidosh] 04/6/2024 00:31

parttime.....I thought the results are due to be released on the 17th July not the 10th but happy to be corrected?

[pj84] 03/6/2024 19:41

From the link posted by whittler100 above the forecast first dividend in 25 is 0.4 and for 25 is 0.6 but more importantly the eps for 26 is forecast to be 8.2p.

As well as being lowly rated the management have previously tried to explain that there chains are viewed as old economy but with increasing automation which is only going to increase there chains are a very specialised and key component and they are far more a new economy company than most people understand.

[parttime] 03/6/2024 19:02

I'm seeing a generous 0.2p(0.3%) divi forecast for this year but thought it was a data error on Stocko..

[kevph] 03/6/2024 18:50

Think that 3p dividend is for preference shares which we don't hold, but happy to be corrected. Overall this could keep going :) Potentially the expectation of the pension deficit being revalued in the light of higher interest rates is doing RNO the world of good as well. Very encouraging.

[parttime] 03/6/2024 18:31

HH,
I'd agree. When the market starts looking past the pensions deficit a simple PE of 10 gives us 73p for this year, perhaps this is currently that re rating playing out now?

If the market then looks forward 12 months the current eps for 2006 is 8p and 10% growth, awarding an undemanding fwd pe of 10 then gives us a target of 80p.

YE 24 Results are due to be released on the 17th July so hopefully we'll have a good TU and re rating will continue. Just for fun I note the sector median pe is 18x for 12.5% growth, slap a 15x on 8p.... £1.20 ! OK, so maybe in 12-18months time but I'm a patient chap. :)

[hopeful holder] 03/6/2024 16:25

Throw in the 3p dividend and we are on he way to 70 pence.

[hopeful holder] 03/6/2024 16:06

It's hard to work out where the next target would be for RNO. I did think 60p might have been a barrier, and still may prove to be so.Any thoughts on where this may go?

[whittler100] 03/6/2024 10:41

hxxps://www.voxmarkets.co.uk/articles/renold-can-t-break-the-chain-f8a13d9/

[robsy2] 23/5/2024 08:47

Thanks Dave. Got three of those in my portfolio and was wondering why they were pushing up so quickly.

[davebowler] 23/5/2024 07:55

Mentioned by master innvestor -

[loglorry1] 17/5/2024 09:45

The only reason for a placing would be to buy another company and they'd only do that if it made sense and was earnings accretive. Personally I'd like to see them embark on a rollup strategy but would prefer that after the shares have re-rated a bit more.

[serratia] 17/5/2024 09:22

They generate a significant amount of cash. The chain market is very fragmented and they are in the market to acquire other companies. At a basic level they were undervalued so a rise wasn't unexpected at some stage.
The only reason for a cash raise would be if they have found a significant acquisition prospect. Many competitors are family owned so they could choose to exit for any number of reasons.

[phg87] 17/5/2024 09:21

Renold Renew Partnership with British Cycling for cycling chain. Just in time for Olympics and good exposure for the company

[mabelf1] 17/5/2024 08:57

Placing inbound imo.

Recent investor site tour + two half baked RNS after years of radio silence = …….

[prokartace] 16/5/2024 09:24

I was in at 22p and the recent rise has been very sharp. So in the hope of some profit taking really

[davidosh] 14/5/2024 14:22

Any particular reason? I added more only last week.

I am hoping to have them on our MelloMonday show in June

[prokartace] 14/5/2024 14:08

Rightly or wrongly I am out. Will follow to see if any chance arise to reinvest

[davidosh] 08/5/2024 14:18

Another happy shareholder from MelloLondon in November

[this_is_me] 08/5/2024 13:40

I'm really delighted by the rise in the share price over the last 6 months or so. Patience has been rewarded.

[davebowler] 02/5/2024 16:42

Master Investor -
Yesterday this industrial chains and torque transmission products group products, which are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining, announced a £10.6m contract with the Royal Canadian Navy.

The order for flexible couplings for the Canadian Surface Combatant ships, with other military work recently awarded, means that Renold’s military order book has increased by £13.1m, over recent months.

CEO Robert Purcell stated that:

“I am delighted that Renold are working with Irving Shipbuilding Inc on the next generation of Canadian warships.

The award of the Canadian Surface Combatant contract builds on the success of our naval flexible couplings business which is already working on the British and Australian naval programmes and this success underpins our belief in the Renold Hi-Tec product range.

This excellent long-term contract will further reinforce our Couplings business performance and shows the on-going benefits of our product development strategy combined with our manufacturing and engineering excellence.”

In the middle of last month analyst David Buxton at Cavendish Capital Markets raised his Price Objective for the group’s shares from 58p to 65p.

For the year to end March he is looking for the group to report revenues of £241.4m (£247.1m), while adjusted pre-tax profits could be £21.7m (£18.6m), lifting earnings to 6.6p (5.9p) per share.

[jimmywilson612] 01/5/2024 14:51

Some things to note....

13th July 2021 - .... has been awarded a contract for the supply of flexible
couplings for the second batch of the Royal Navy's Type 26 future frigate. The contract is worth £11 million over the next eight years.

17th January 2023 - ....
pleased to announce that Renold Couplings, part of the Company's Torque Transmission division, has been awarded a contract worth £8.7 million for Australian Navy.

Today - .... Batch 1 of the Canadian Surface Combatant ships for the RoyalCanadian Navy, worth £10.6 million


So Renold now are really making inraods into a great niche with wins across multiple different navys. Now, big thinking - US Navy? Game-Changer in terms of scope/value. The previous two contracts were through BAE Systems. Today is Irving Shipbuilding Inc so another route to market for Renold. Clearing getting a good reputation across this niche industry.

This is also Batch 1. Assume if they're talking about Batch 1, then there is a Batch 2.......

[greyingsurfer] 01/5/2024 09:36

Not a new market. The ships being replaced used the same RNO kit! But I guess military orders may be seen as a vote of confidence?

[robsy2] 01/5/2024 08:55

That's what i was thinking Log. Maybe it is a significant move in terms of opening up a new market for them?
Things going well here though.

[davebowler] 01/5/2024 08:03

Cavendish-Enterprise value (£m) 187.9The group has announced a contract win for its Cardiff Couplings business, to supply flexible couplings to the Canadian Navy for its latest surface ships. The contract worth £10.6m starts this year and continues for the next six years. This follows recent successful contract wins with the UK Navy, with further potential opportunities with other NATO countries. No change to forecasts, but this clearly shows ongoing momentum in the business. The shares remain good value on a P/E of 7.5x and we see good upside from current levels towards our 58p target price.