Renold Share Discussion Threads

[envirovision] 20/7/2011 19:02

Thanks for your post.

[manchesterbill] 20/7/2011 18:39

Attended today's AGM. Company obviously concerned about current lowly rating, which it thinks undervalues RNO by around 30%, and feels City still does not trust its recovery potential. Company expects to increase revenues 10% per annum this year and next, and remains confident that it can boost return on sales from current 3.7% to target 10% in 2012/13 which implies an operating profit of circa £20m-£25m in two year's time. RNO appears relatively relaxed about its ability to pass on sharply higher steel prices to end customers, and avoid being blown off course by the Eurozone's current economic troubles. It believes that it has its working capital firmly under control, and will not need to tap shareholders for extra funds on this score. Payments into the pension deficit have been capped at £2.4m pa for next three years, and thoughts about resuming dividend payments have moved up the agenda (although still no firm commitment as to whether it will happen in current year). Major blue chip shareholders (Pru/M&G, Henderson/Gartmore, Cazenove, Hargreave Hale) remain firmly on board and have been joined by Blackrock with a 5.1% stake. Top 8 institutions control 62% of shares.

One potential worry is roll-out of new global enterprise resource planning (ERP) project, given ability of these types of IT projects to go wrong. Not sure why it has taken RNO so long to embrace ERP, but management seems confident that project will be brought in on time and on budget. Other niggle is fact that two of RNO's three non-execs still do not own any shares, and were irritated when asked why not.

If next trading statement, due in August, confirms that recovery remains on track then RNO just might start to reverse its chronic underperformance against the engineering sector oiver the last 2 1/2 years.

[london calling] 20/7/2011 17:37

Rno has moved up 10% in the last few days, at least in terms of closing prices.

[limit up] 20/7/2011 17:02

did anybody go to the agm?

[redips2] 28/6/2011 11:02

Well I'm in here for a few---so we will see what we will see. :)

[envirovision] 23/6/2011 20:06

sorry me miss reading investoree

[investoree] 23/6/2011 19:32

envirovision - Unless I have misread the RNS it doesn't look as if the Directors are actually spending any of their own money

RNS Number : 9446I

Renold PLC

23 June 2011

Renold plc

("Renold" or "the Company")

Directors' purchase of shares

Renold announces that, in accordance with Renold's bonus arrangements for its Executive Directors as set out in the Company's annual report for the year ended 31 March 2011, it funded the purchase of ordinary shares of 5p each in the Company ("Ordinary Shares") on behalf of Robert Davies, Chief Executive Officer and Brian Tenner, Group Finance Director, on 21 June 2011 at a price of 36.2p per share. 202,127 Ordinary Shares were purchased in Robert Davies' name and 40,831 Ordinary Shares were purchased in Brian Tenner's name.

[envirovision] 23/6/2011 16:02

Good to see directors buying again.

[rivaldo] 20/6/2011 09:59

Nice plug in yesterday's Sunday Times:



"Are these the future stars of the FTSE 100?
June 18 2011 12:01AM

Specialist small companies can be a gold mine for investors who know what to look for. Mark Atherton outlines exciting prospects

UK smaller companies funds have had a very good run in the past year. They have produced an average return of 34.6 per cent over the past 12 months, almost double the 17.8 per cent return from funds in the UK all companies sector, which includes stocks of all sizes.

James Henderson, whose Lowland Investment Trust and Henderson UK Equity Income Fund both have a strong small company bias, says there are some real gems to be found in the often overlooked and less well researched smaller companies sector."

"Renold

This company, with a market cap of £80 million follows the Weir mould by specialising in the manufacture of chains and couplings.

It now sells its products around the world, with customers in India, China and Latin America, as well as the more developed markets of Europe and the US. It achieves annual sales of about £200 million and is one of the top three chain manufacturers in the world.

Mr Henderson says: "Doing one thing extremely well has proved to be a sustainable approach for a business and there is every chance that Renold will be able to emulate, in a modest way, the achievements of the Weir Group.

"In contrast Hanson and BTR, the old-style conglomerates, engaged in a lot of businesses but did none of them really well, which helps to explain why they eventually came unstuck." "

[saltaire111] 17/6/2011 21:51

Looks like 55p is about the right target price for RNO. It's not that long ago that the market valued this really solid engineer at +£1.00. But 55p would do for now...

[sidneyellie] 13/6/2011 14:51

10000 showing as a sell, was a buy,

[zorija] 13/6/2011 13:40

Nice to see:-

Renold announces that Brian Tenner, Group Finance Director, notified the Company on 10 June 2011 that on the same date he had purchased seventy five thousand (75,000) ordinary shares of 5p in the Company ("Ordinary Shares") at a price of 37.9p per share...

[nicedude1976] 03/6/2011 10:29

Have been unable to add at 37p recently.

[limit up] 01/6/2011 09:07

looks as if brokers are still looking for 4.2 eps for this year and tgt price of 55p which is unchanged from previous forecasts..
regds

[simon gordon] 01/6/2011 06:46

Indie - 1/6/11:

Renold

Our view: Buy

Share price: 36.75p (-3.25p)

Renold's full-year figures were slightly below the estimates pencilled in by FinnCap analysts at the time of the Manchester-based engineer's last update, which could have been part of the reason why the stock fell last night.

However, we think a more plausible trigger is the rally since the slump seen in early March. Indeed, even after the pullback, Renold remains well above the levels seen just two months ago.

Moreover, the figures were hardly horrific. Underlying revenues were up 19 per cent in the year to the end of March, while the company's underlying order intake was up by 23 per cent. The order book was up 13 per cent over the year.

Renold, which supplies chains, gears and couplings to various sectors, also managed to reduce its pension deficit, and generated cash over the second half of the year. The share price fall, then, is likely to be the result of little more than short-term profit-taking. And the fact that the stock trades on under 10 times forward earnings points to the promise of further gains once the effects of the pullback have worn off.

[london calling] 31/5/2011 12:22

not a big volume of sells, my guess is that traders that bought in prior to results have sold, depressing the price. in a day or two could recover.

[cr4zyness] 31/5/2011 11:04

Limit thought the consensus eps was forecast 1.69p?

[puffin tickler] 31/5/2011 10:35

limit up

I agree, no reason for the 10% price fall as results are in line with expectations. Still plenty of uncertainty with the pensions and prospects but very derisked compared to a year or two ago. I expect a steady rise from here with the possibility of a substantial rerating.

[limit up] 31/5/2011 09:25

cr,i think they were in line,with the forecasts.

[cr4zyness] 31/5/2011 09:10

Limit did they not beat forecasts? ;)

[limit up] 31/5/2011 08:58

puffin tickler.
some would have bought for the figs,as the share price did move up last week.i am not selling for the short term gain,as i see the co slowly turning itself around..
regds

[puffin tickler] 31/5/2011 08:48

Looks like some are abandoning in the short term though...

[limit up] 31/5/2011 08:44

figs in line with forecasts,and a good statement for going fwd,looks like long term hold..
regds

[ravenna23] 31/5/2011 08:38

Forward p/e (2012/13) of 4?

[ydderf] 31/5/2011 08:24

p/e of 20?