 saw shares rise on Wednesday, after a shareholder update showed order intake had converted to revenue growth in the first quarter.){kind=link}
Engineering product supplier Renold (LON:RNO) saw shares rise on Wednesday, after a shareholder update showed order intake had converted to revenue growth in the first quarter.
Renold, a supplier of industrial chains and related power transmission products, saw underlying revenue increase by 6.6 percent over the past three months, largely resulting from an 8.2 percent revenue increase delivered in the Chain division. Underlying revenue in its Torque Transmission division remained more stable, with growth of just 0.5 percent over the quarter.
Order intake in the Quarter was 11.4 percent ahead of revenue in the same period, but the group suffered from sustained increases in raw material costs during the first quarter primarily in respect of steel.
Robert Purcell, Chief Executive of Renold, commented:
“As expected, the improving order intake in the Chain division in the latter part of the prior year has converted into strong revenue growth in the first quarter of the current year. The implementation of sales price increases, to help offset the impact of higher raw material prices are combining with volume growth across all major chain territories.
“For Torque Transmission, revenues in the Quarter have increased slightly. The major project win builds on our specialist UK Couplings product line and will deliver revenue over a number of years, utilising the greater manufacturing capability at the consolidated UK Couplings facility in Cardiff.”
The group remains on track to deliver a result for the full year in line with the Board’s expectations.
Its shares are currently trading up 0.93 percent at 54.00 (1007GMT).