Renold Share Discussion Threads

[sagem] 24/11/2010 10:20

Renolds PLC IS A BUY....AND NOT BY BY

UP TODAY 0.75P 20,232 BUYS AGAINST ONLY ONE SELL OF 2175
THIS SPEAKS FOR ITS SELF
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FROM MANCHESTER HERALD

Business
Renold gears up for growth after return to profit
November 23, 2010

Engineering firm Renold, whose products are found in Big Ben's clock tower and the Oblivion ride at Alton Towers theme park, delivered a boost for Greater Manchester as it returned to profit for the first time in two years and announced it was shifting manufacturing back to the region.

Renold, which has its headquarters in Wythenshawe, Manchester, makes heavy duty chains, gears and couplings for sectors ranging from leisure and transport to food processing and mining.

The group posted pre-tax profits of £400,000 for the six months to September, compared with losses of £8.8m in the same period last year.

It reported a rise in underlying sales from £75.5m to £92.9m and said its order book at the end of the period was 13 per cent higher than at the start.

Chief executive Bob Davies said Renold was increasing production and staffing across its sites in Bredbury, near Stockport, and Milnrow, near Rochdale, as demand increases.

The firm shed hundreds of jobs when the recession took hold but is now recruiting again.

The firm announced plans to close a facility in Seclin, north east France, and transfer production of heavy duty conveyor chains to its plant at Bredbury, where it has invested more than £500,000 in new equipment to cater for the increased demand.

At Milnrow, where Renold makes gearboxes and couplings, staff numbers have increased steadily this year to 190.

Mr Davies said: "We are in recruitment mode at all of our UK facilities. Production is coming back to the UK."

He said Renold was making the move because of soaring UK demand for its goods and because of the strength of its British-based teams.

Renold employs just over 2,600 staff worldwide, having added 150 employees over the last 12 months.

The company's overseas factories are scattered across locations such as Einbeck in Germany, Tennessee in America, Tamil Nadu in India and Hangzhou in China.

Its first-half performance beat management expectations, helped by improving market conditions worldwide.

Renold is benefiting from an increase in orders from companies that were 'destocking' during the recession in a bid to cut costs.

Orders exceeded sales for five of the last six months, it said.

The company's chain manufacturing business, which accounts for 76 per cent of its sales, returned to profit in the half-year after underlying turnover was boosted by strong demand from India, China and America.

The rest of its business - which makes products including gearboxes and carriage couplings used on New York Subway trains - suffered a dip in sales in the half-year, but increased its operating profits after focusing on higher margin products.

The outlook for the rest of the year remains positive and Renold will consider paying a dividend in the following year.

Shares fell more than 12 per cent to 33p, giving up some of the recent gains seen following an upbeat trading update in October when they soared by nearly 40 per cent.

[tom111] 24/11/2010 10:10

Has anyone come out of the woodwork and say this is a BUY.Frankly NO

[sagem] 24/11/2010 09:32

Steady climb back progressing well so far today up 0.0075p

[tom111] 24/11/2010 08:19

Sleveen exactly, nobody mentions the previous rights issue that diluted the share price.Dont like the debt or pension issues imo

[sleveen] 24/11/2010 07:52

Whilst £20m sounds good compared with the £12m previously, what they fail to mention is thatthere are now 3 times as many shares in issue as there were 18 mths ago

[andyh21] 24/11/2010 07:49

Sharecast:

Industrial chaim maker Renold believes that it can return to margins of about 10% by 2012-13, which would suggest operating profits of more than £20m if sales continue to grow at their present pace. The shares were well above 120p at the end of 2007, before a substantial fundraising. They are now worth a little more than 30p and there is no chance of a dividend this year. One for the brave to lock away for the long term. Someone may even buy it says the Times.

[sagem] 24/11/2010 07:48

tom111 -......rubbish....read their report properly

[tom111] 24/11/2010 07:43

Dont keep banging on mate the truth is the shares could hit 28p or lower imo

[sagem] 24/11/2010 07:31

RECOVERY COMPANY AND FUTURE GROWTH POTENTIAL

A combination of a recovery in sales and cost-cutting helped engineering group Renold (RNO) swing to a pre-tax profit for the half-year ended 30th September 2010. The company, which produces a wide range of precision engineering products, revealed a pre-tax profit in the six months of 0.4 million pounds, compared with a loss of 8.8 million pounds a year earlier. Revenue jumped by 23% to 92.9 million pounds due to a recovery in all geographical areas for the Chain division, which accounts for more than thee quarters of revenues. Renold shares dropped 4.5p to 33.25p.

[tom111] 23/11/2010 18:19

Woodcutter i agree with you entirely on RNO

[woodcutter] 23/11/2010 17:27

tom

Yes i agree the FIF debt is significant and the balance sheet intangibles are also high relative to shareholders funds. BUT they generated £11m operating cashflow and the pension fund deficit is not too significant. IMV it will recover quicker than RNO and may well be a mutibagger, the next results will be very interesting. I feel RNO will stand time for some considerable period due to it's pension deficit.

thanks for SIV i will look at it.

Sorry to others for FIF comments, will leave it there for now.

Woody

[andyh21] 23/11/2010 17:10

Thankfully RNWH results where out today too and they didn't disappoint! I actually thought they would lag RNO, how wrong you can be in this game! fortunately Mr Schwartz from the FT didn't jump on the bandwagon like he did here, tipping just before the results, I'm glad he's got egg on his face as he did with BQE but not that pleased I am a holder!

[tom111] 23/11/2010 16:52

Sorry woodcutter but FIF looks to be heavily in debt and the chart is not inspiring considering the results were out recently.May i suggest an alterative with due respect SIV. DYOR

[woodcutter] 23/11/2010 16:22

Just looked at the results to consider RNO as a potential recovery play and with the goodwill, pension liabilities and negative cash flow, regardless of reasons explained..... it just looks too big a risk reward. Without wishing to upset anyone or be controversial it would appear to be a pension fund with a chain manufacturing business attached.

A better debt recovery play with similar problems but different sector could be FIF which looks to be generating profit and cash. Will look at this further and pass RNO.

Woody

[tom111] 23/11/2010 15:12

Frankly i grabbed a profit first thing this morning,i really thought this would be a better report,im sure CR possibly took the same view,and why not.The writing was on the wall at 8am

[sagem] 23/11/2010 14:55

ydderF ..Once the sellers have gone we will see an increase in the share price....this compamy is still a very good growth story, it will start to get tipped by thje National papers etc.....I HOPE

[ydderf] 23/11/2010 14:48

SAGEM - do you regret not dumping first thing like (the strangely silent) crookers?

[ny boy] 23/11/2010 13:31

Sagem, Sorry I missed your point, could you repeat it again :-)

[tom111] 23/11/2010 12:49

Wearing rose tinted sun glasses sorry sagem