Renold Share Discussion Threads

[davidosh] 17/7/2024 10:04

I think you will find that all forecasts over the last two years have been consistently beaten and upgrades through the year have been the norm. I suspect another acquisition is on the cards and that it will be within the sector as they only have 6% of the market even though the second largest player.

[shanklin] 17/7/2024 08:32

Better to under-promise and over-deliver?

[tiswas] 17/7/2024 08:25

Muted price reaction.

Cavendish forecasts not too exciting with adjusted eps going from 6.9p this year to 7.1 and 7.3 for the next 2 years and DPS maintained at 0.5p for both years.

It is a lengthy note so not read it in detail but not exactly putting a rocket under the share price

[melody9999] 17/7/2024 08:13

Cavendish raise their price target by 10p from 65p to 75p (c 15%). More to go in terms of efficiency / automation ie reducing costs and improving margins. Reduced debt and lower interest rates will help too.

[texaspete2] 17/7/2024 06:53

Just having a quick look, Outlook statement seems a but vague, but I'm a happy shareholder overall

[rimau1] 17/7/2024 06:29

Operating profit beat versus TU 29.7m v 29m. Those results are ahead of my expectations, i like the messaging on operational leverage and the acquisition pipeline. Pension deficit down and we now have a strong balance sheet to fund acquisitions. Any bear points that i have missed because in my view the share price should kick on from here as analysts upgrade FY25 and FY26.

[phg87] 17/7/2024 06:28

Great results, smashing EPS expectations, increased profit, reduction of debt and first dividend in 19 years. Will take that!

[sundance13] 17/7/2024 06:17

6.7p and they've beaten that comfortably. In fact they've beaten the forecast for 25 also.

[eddystone] 16/7/2024 16:44

Interesting price action today as some taking profit from the strong recent run up. But as it's already 10% off recent highs, also some healthy buying (including me). Good size (for RNO) both sides of the market with easily £50k's worth on the bid and the offer which is unusual. I'm guessing that as it's quite illiquid, market makers want to keep flattish unless they know things we don't. Awaiting update tomorrow with curiosity.

[disc0dave46] 16/7/2024 15:57

Is consensus for this FY 7.3p eps?

[retsius] 16/7/2024 12:59

Why all the selling in to what should be excellent results?

[davebowler] 15/7/2024 08:14

MAster Investor-

Renold (LON:RNO) – Heard It Before? An Excellent Chain Story
On Wednesday of next week (17th) the leading international supplier of industrial chains and related power transmission products will be announcing its Final Results for the year to end March 2024.

Way back in mid-April the company informed investors that it had seen a continuation of the strong H1 momentum and that the results for the full year were now expected to be materially ahead of current market expectations, with adjusted operating profit approximately 20% higher than the prior year, driven by a further improvement in margin.

It also noted that it had continued to strengthen its financial position, which provides funding capacity to support its strategic growth objectives.

Those objectives include investment to further enhance operational capabilities and also for value-accretive acquisitions from its developing pipeline of opportunities.

Analyst David Buxton at Cavendish Capital Markets had a Price Objective of 58p, which I feel continues to be too conservative.

His estimates for the results are for revenues of £241.4m (£247.1m), but with adjusted pre-tax profits having risen to £21.7m (£18.6m), increasing earnings to 6.6p (5.9p) per share.

For the current year Buxton looks for £243.2m of sales, with £22.7m profits and earnings of 6.8p, enabling a dividend of 0.4p (nil) per share.

I really like this £124m company’s shares – they are under-rated by the market at the current 59.40p.

They have recently been up to 66.80p and will soon be over that price very soon.

[swiss paul] 09/7/2024 18:36

Renold, a leading international supplier of industrial chains and related power transmission products, is pleased to announce that the Company will conduct a live presentation and Q&A session for investors on the same day as its results for the year ended 31 March 2024 are released, 17 July 2024, at 5.30pm BST.

This session is open to all existing and prospective shareholders. Those who wish to attend should register via the following link and they will be provided with access details: hxxps://us02web.zoom.us/webinar/register/WN_9KfZYYnqRS6RgoVKiXvybQ

Participants will have the opportunity to submit questions during the session, but questions are welcomed in advance and may be submitted to: [e-mail].

[tiswas] 24/6/2024 15:09

Yes, started buyung back today having sold 3/4 at 66p. Too big a fall imo.

Does not always work, had a couple that have raced away after selling, but bought RNO on 2 decent pulbacks over the last year or so, so fingers crossed it works again. Still cheap imo.

[greyingsurfer] 24/6/2024 14:36

RNO is not a massively liquid share. It's still up 30-40% on April. Without doubt profits have, are, being taken. It's a long way up over 3-4 years. I doubt there s any more sinister explanation for the pull back. As I said a couple of weeks back I sold half my holding to bank some profits. But I still hold half, and I'm reasonably confident that we will have selling opportunities higher than the recent peak within a year. As the pension debt gets reduced and hopefully dividends restart I see real possibilities of a rerating.

[phg87] 24/6/2024 12:56

New contract wins and good results last year. The drop on its own seems strange. Another big drop today is odd. Will hold but DYOR

[hopeful holder] 24/6/2024 12:32

I think it's a mix between profit taking and the fact that RNO have been on a few of the online discussions and seminars so elevated awareness for a while.But... anything can happen of course. I think it's a good company and has direction. With the price drop I am thinking at what point do I buy more, after top-slicing prior to the drop.I can see 60p being hit again with a pension deficit reduction being one of the many triggers to make this happen.

[disc0dave46] 24/6/2024 09:41

Guess this is just some profit taking?

[dozey4] 16/6/2024 18:36

The correction on Friday may have been triggered by top slicing by readers of this board. I’ve decided to hang onto my overweight holding ‘until the story changes’. Snag is I will probably be one of the last to know.
Years ago I bought an absolute shedload of penny shares in an outfit called Renew RNWH. As it doubled and doubled again I couldn’t wait to shovel them off and pocket the profit. If I still had them all, Rodders, this year I’d be a millionaire - well, not quite.

[melody9999] 08/6/2024 09:00

still on a very low rating.

[greyingsurfer] 07/6/2024 13:43

I've followed you. Cut half. Got in at 15p a few years back, so decided it was time to follow the old maxim, leave something for the next guy! I'd been undecided about holding further, I still think that in a year or do, with the pension debt reduced further and dividends starting they could be usefully higher. But I'm happier holding onto half for that, and a decent profit.

[tiswas] 07/6/2024 13:34

Very strong today and I took the opportunity to topslice a good few.

I hope that I learn from this. In a down market where everything is getting smashed you doubt yourself and assume that Mr Market knows something that you don't.

This is one of the few where I believed that they were just too cheap and loaded up in the twenties.

No idea where they go from here but just demonstrates that this investing game is as much as mind over matter as it is understanding fundamentals.

End of sermon!

[this_is_me] 07/6/2024 13:10

Up 4% on a down day.

[davidosh] 04/6/2024 11:18

I will try to get Renold onto one of our Mello investor shows after the results

[parttime] 04/6/2024 10:57

Thanks for pointing that out david and whittler, Stocko showing the 10th but it is indeed the 17th and I've amended my post accordingly.