Renold Share Discussion Threads

[eddystone] 02/1/2024 19:23

Renold is my biggest holding - have been accumulating since 19p and placed another bid today.Revenue and EPS are growing well, but it's slow. The pension liability has reduced because of rising rates, and will increase again, when rates fall. Although I'm overall positive, Renold is still fragile because any exceptionals can wipe out cash flow. I would like management and their financial PR to communicate its strengths much better such as its exposure (if any) to high growth industries like robotics, materials handling, battery manufacturing. I forecast its share price rise from 30p to mid to high 30s and it feels like it will consolidate here after today's sudden jump. Breaking 40p will be hard unless there is news we don't know.

[hopeful holder] 02/1/2024 16:38

We have gone past a 5 year high, always good news. I'm not sure of the full history but if you go back further in history these were so much higher.I am still researching but my reading earlier today compelled me to buy more.

[wigwammer] 02/1/2024 14:15

Yes. Been a great ride. The key thing for me was the resilience during Covid - makes you realise how vital these products are across many different industries. They also appear to have acquired sensibly (so far) - enabling them to cover fixed costs such as the pension payments using a materially bigger sales/asset base. Great company IMO and much better placed to continue to drive down the liabilities.

[thorpematt] 02/1/2024 14:01

On Stocko rankings it is a 100 which is rare.

I think it was also covered in Share mag if I recall.

[texaspete2] 02/1/2024 11:26

Excellent volume supporting the rise today. There has been good coverage of Renold on Stockopedia over the Xmas period. Value being recognised here.

[hopeful holder] 29/12/2023 10:35

I've had a major sort out of my portfolio, moving away from oilers last year and into other sectors. I've just sold a number of holdings and reset my portfolio ready for the first part of 2024. I won't be at your level prokartace. I used to be a hold for years kinda person but now I'm much more active and decisive (I still mess up) than I was.

[davidosh] 28/12/2023 18:04

I will announce them on the first trading day of January so the share prices are set at the right point. I always pick five for the StockChallenge. Currently I am in the top decile in the 2023 comp.

[jaf111] 28/12/2023 17:17

…and your other four picks being davidosh???

[davidosh] 28/12/2023 10:47

HH...I think Renold are a good choice and are one of my top five picks for 2024.

[hopeful holder] 28/12/2023 10:18

I've been looking at these for a while and I see a well managed company with a picture that has been improving for quite a while. Today I bought in.

[prokartace] 18/12/2023 08:12

We are at a 5 year high and therefore resistance level. Lets see where we go from here

[davebowler] 11/12/2023 17:53

Master Investor-Renold (LON:RNO) – Not A League To Go Yet Just over a month ago, when the shares of this Wythenshawe, Manchester-based engineered products maker were down at 29p, I set a new Target Price of 36p. The recently announced Interim Results brought about profit estimate upgrades. Analyst David Buxton at Cavendish Capital has fixed a 38p Price Objective on the group's shares. He is looking for a small step back in sales for the current year to end March 2024, from £247.1m to £244.3m. However, he is expecting an increase in adjusted pre-tax profits to £19.2m (£18.6m), with earnings rising fractionally to 6.0p (5.9p) per share. The group's shares, which touched 35.59p last Thursday, closed on Friday night at 34.45p. I have absolutely no concerns about my latest Target Price being achieved very soon, possibly within days. (Profile 04.06.19 @ 30p set a Target Price of 60p) (Profile 08.11.23 @ 29p set a Target Price of 36p)

[davidosh] 08/12/2023 02:28

There was an exceptionally impressive BASH session at the Mello London event which included Renold and it seems to have gone up steadily since then

[volsung] 07/12/2023 15:10

Nice wee rise the day

[jimmywilson612] 15/11/2023 15:11

Take away the Debt and in 2025 when the pension valuations happen - the Balance Sheet will be in a much stronger place to then decide to throw cash to shareholders. Before that, I'm happy for Management to build value 1st.

[this_is_me] 15/11/2023 13:01

I think that they will want to reduce debt unless a particularly good prospect emerges.

[prokartace] 15/11/2023 12:18

I am sitting on a near 50% profit but cannot bring myself to realise it with the current valuation. A dividend would help but clearly the company want to grow by aquisition. This will be a problem as they can't really by companies with higher valuations than their own

[pj84] 15/11/2023 11:44

This must now be on a prospective PE of 4 or less, should be far higher.

[kemche] 15/11/2023 11:20

Looking good.

[hardupfedup] 15/11/2023 07:55

fyi ----Robert Purcell, Chief Executive of Renold, said:

" I'm pleased to report continued progress which builds on the momentum the Group has enjoyed in recent periods, delivering a record half year result. Sales, margins, profits and cash generation have all progressed well. Global markets continue to be uncertain and we remain vigilant for changes in patterns of demand beyond the current order book shortening. We are delighted with the purchase of Davidson in Australia, which further builds our inorganic growth strategy and we remain well positioned to continue developing through acquisition. There remains uncertainty over the implication of global economic pressures in the medium term, however the Board is increasingly confident in delivering a result for the current year ahead of previous market expectations."

[this_is_me] 15/11/2023 07:18

The increase in profitability is particularly impressive. Debt down despite acquisitions.

[hardupfedup] 15/11/2023 07:17

Excellent results should be double present price imo

[jimmywilson612] 26/9/2023 15:43

Dozey,

I emailed the CEO asking around the pensions;

The pension valuation I believe your are referring to is the Triennial valuation and this has to take place on a three year cycle so the next one will be in 2025 and as it takes a long time to get this agreed will not actually be available until early 2026. The Triennial valuation is an actuarial valuation and is what the Trustees and the Pensions Regulator use. This actuarial or Technical Provisions valuation shown in our accounts for the UK scheme was £5.9m at the last 2022 valuation. We do periodically give the market our internally approximate calculated update on this number. The £44.2m UK accounting deficit, shown in our accounts, we update each year end and we produce an estimate usually at the half year.


In summary - what has happened at Wincanton absolutely will be of benefit to Renold PLC - but it won't be re-valued and therefore reflected on balance sheet until 2026.