TIDMRNO
RNS Number : 5150G
Renold PLC
16 November 2022
Renold plc
Interim results for the half year ended 30 September 2022
("Renold", the "Company" or, together with its subsidiaries, the
"Group")
Strong performance, strategic chain acquisition and significant
increase in earnings
Renold (AIM: RNO), a leading international supplier of
industrial chains and related power transmission products,
announces its interim results for the six month period ended 30
September 2022.
Financial summary Half year ended
Change %
Restated(1) (Constant
30 September 30 September
GBPm 2022 2021 Change % currency)
Revenue 116.3 95.3 +22.0% +14.3%
Adjusted operating profit(2) 9.6 7.2 +33.3% +20.8%
Return on sales(3) 8.3% 7.5% +80bps +50bps
Adjusted profit before tax(3) 7.3 5.2 +40.4%
Net debt(4) 34.0 13.9
Adjusted earnings per share 2.7p 1.9p +42.1%
Additional statutory measures
Operating profit 8.8 8.7 +1.1%
Profit before tax 6.5 6.7 (3.0)%
Basic earnings per share 2.3p 2.6p (11.5)%
Financial highlights
-- Revenue up 22.0% (14.3% at constant exchange rates) to
GBP116.3m driven by strong growth in Chain (2021: GBP95.3m)
-- Adjusted operating profit up 33.3% (20.8% at constant
exchange rates) to GBP9.6m (2021: GBP7.2m)
-- Return on sales increased by 80bps, (50bps at constant
exchange rates) to 8.3% (2021: 7.5%). Price increases offset input
cost and supply chain challenges
-- Net debt as at 30 September 2022 GBP34.0m (1.2x rolling 12
month EBITDA), higher primarily due to EUR20.0m initial cash
consideration for the acquisition of Industrias YUK, S.A.
-- Adjusted EPS up 42.1% to 2.7p (2021: 1.9p)
-- IAS 19 pension deficit reduced by 29.6% to GBP61.3m (31 March 2022: GBP87.1m)
Business highlights
-- Strong first half performance as markets continued to
recover, despite cost inflation, economic uncertainty and global
supply chain disruption
-- Group order intake in the period GBP121.3m, up 18.9%,
excluding prior year long term military contract (11.0% at constant
exchange rates)
-- Order book at 30 September 2022 GBP99.0m, continues at record
high (30 September 2021: GBP72.1m)
-- Acquisition of Industrias YUK, S.A. ("YUK") for EUR24m,
increases the Group's access to the Iberian Chain and wider
European CVC markets. The integration process is well progressed
and the business is performing ahead of expectations
-- Good progress on capital investment, productivity
improvements and cost reduction programmes, accelerating the
integration of Group-wide supply chain and increasing
capabilities
(1) See Note 12 for details of the prior period
restatements.
(2) See below for reconciliation of actual rate, constant
exchange rate and adjusted figures.
(3) See Note 11 for definitions of adjusted measures and the
differences to statutory measures.
(4) See Note 8 for a reconciliation of net debt which excludes
lease liabilities.
Robert Purcell, Chief Executive of Renold plc, said:
" The strong trading momentum experienced in the second half of
the last financial year has continued in the first half, with the
Group continuing to successfully manage significant inflation and
supply chain disruption, resulting in growing sales and record
orders. Whilst we are mindful that global markets continue to be
uncertain, with ongoing labour and energy cost inflation and supply
chain challenges, the Group's trading momentum continues to be
positive. The Group has record order books and the acquisition of
YUK provides opportunities for synergies and further growth."
Reconciliation of reported, constant exchange rate and adjusted
results
Revenue Operating profit Earnings per
share
--------------------- ------------------------ ------------------------
Restated(1) Restated(1)
H1 H1 H1 H1 H1 H1
2022/23 2021/22 2022/23 2021/22 2022/23 2021/22
GBPm GBPm GBPm GBPm pence pence
----------------------------- ---------- --------- ---------- ------------ ---------- --------------
Statutory at actual
exchange rates 116.3 95.3 8.8 8.7 2.3 2.6
Adjust for non-recurring
items:
US PPP loan forgiveness - - - (1.7)
Dilapidation costs for
closed sites - - - 0.2
Acquisition costs - - 0.6 -
Amortisation of acquired
intangible assets - - 0.2 -
----------------------------- ---------- --------- ---------- ------------ ---------- --------------
Adjusted at actual exchange
rates 116.3 95.3 9.6 7.2 2.7 1.9
Exchange impact (7.4) - (0.9) -
----------------------------- ---------- --------- ---------- ------------
Adjusted at constant
exchange rates 108.9 95.3 8.7 7.2
----------------------------- ---------- --------- ---------- ------------
(1) See Note 12 for details of the prior period restatements
Investor Presentation
The Company will conduct a live presentation and Q&A session
for investors at 5:30 pm GMT today, 16 November 2022. The
presentation is open to all existing and potential shareholders.
Those wishing to attend should register via the following link and
they will be provided with log in details:
https://us02web.zoom.us/webinar/register/WN_6WUx953NTUmetFUprlFHSA
There will be the opportunity for participants to ask questions
at the end of the presentation. Questions can also be emailed to
renold@investor-focus.co.uk ahead of the presentation.
ENQUIRIES:
Renold plc IFC Advisory Limited
Robert Purcell, Chief Executive Tim Metcalfe
Jim Haughey, Group Finance Director Graham Herring
renold@investor-focus.co.uk
0161 498 4500 020 3934 6630
Nominated Adviser and Joint Broker Joint Broker
Peel Hunt LLP F innCap Limited
Mike Bell Ed Frisby / Tim Harper (Corporate
Finance)
Ed Allsopp Andrew Burdis / Harriet Ward
(ECM)
020 7418 8900 020 7220 0500
Cautionary statement regarding forward-looking statements
Some of the information in this document may contain projections
or other forward-looking statements regarding future events or the
future financial performance of Renold plc and its subsidiaries.
You can identify forward-looking statements by terms such as
"expect", "believe", "anticipate", "estimate", "intend", "will",
"could", "may" or "might", the negative of such terms or other
similar expressions. Renold plc (the Company) wishes to caution you
that these statements are only predictions and that actual events
or results may differ materially. The Company does not intend to
update these statements to reflect events and circumstances
occurring after the date hereof or to reflect the occurrence of
unanticipated events. Many factors could cause the actual results
to differ materially from those contained in projections or
forward-looking statements of the Group, including among others,
general economic conditions, the competitive environment as well as
many other risks specifically related to the Group and its
operations. Past performance of the Group cannot be relied on as a
guide to future performance.
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial
chains and also manufactures a range of torque transmission
products which are sold throughout the world to a broad range of
original equipment manufacturers, distributors and end-users. The
Company has a reputation for quality that is recognised worldwide.
Its products are used in a wide variety of industries including
manufacturing, transportation, energy, metals and mining.
Further information about Renold can be found at:
www.renold.com
Chief Executive's statement
The Group has continued to successfully manage a period of
sustained cost inflation and supply chain disruption. Materials,
energy, labour and transportation costs have all increased
substantially, however, selling price increases have been
implemented, and margins have been robust. The Group expects to
experience further cost pressures through the second half of the
year but we are confident that these will again be managed
successfully.
Renold continues to focus efforts on driving and optimising
performance through identified projects, some requiring capital
investment, targeting better operational efficiency, improved
design and standardisation of products, better asset utilisation,
more flexible working practices, and leveraging improved
procurement strategies.
The Group performed well in the first half, delivering an
increase in revenues of 22.0% to GBP116.3m (2021: GBP95.3m). At
constant exchange rates, revenues increased 14.3%. Order intake
continues to run ahead of sales, totalling GBP121.3m for the
period. Excluding the impact of the GBP11.0m long term military
contract announced on 13 July 2021, this represents an increase of
18.9% over the prior year equivalent period, or 11.0% at constant
exchange rates.
Order books as at 30 September 2022 of GBP99.0m again represent
a record high for the Group, and are 37.3% higher than the prior
year equivalent; 24.3% at constant exchange rates.
Adjusted operating profit increased to GBP9.6m (2021: GBP7.2m,
excluding the impact of non-recurring items, notably the benefit of
US PPP loan forgiveness of GBP1.7m and GBP0.2m of costs relating to
closed sites) with return on sales of 8.3% (2021: 7.5%), driven by
productivity enhancements and the benefit of increased volumes and
pricing. Statutory operating profit increased to GBP8.8m (2021:
GBP8.7m), with statutory operating profit margin for the period of
7.6% (2021: 9.1%).
Net debt increased during the period by GBP20.2m to 34.0m (31
March 2022: GBP13.8m) due to the acquisition of Industrias YUK,
S.A. and an investment in inventory.
M&A
On 3 August 2022 the Group acquired Industrias YUK, S.A. ("YUK")
based in Valencia, Spain, a manufacturer and distributor of high
quality conveyor chain ("CVC") and ancillary products.
The acquisition will allow Renold to leverage YUK's strong CVC
market position in Spain and Portugal to expand sales of the
Group's existing range of premium European transmission chain
("TRC") products, and enable sales of YUK products throughout
Renold's extensive European sales network. Opportunities exist for
significant manufacturing synergies between YUK and Renold's
current international operations.
During the period in which Renold has owned YUK, which includes
the August holiday period, YUK has traded ahead of our initial
expectations. Since acquisition YUK recorded sales of GBP2.2m,
operating profit of GBP0.2m, and an initial return on sales of
9.1%.
The initial cash consideration was EUR20.0 million, with two
deferred cash payments of EUR2.0 million each, payable 12 months
and 24 months from the date of acquisition.
There remains an active pipeline of acquisition opportunities
which the Group continues to review as part of its growth strategy.
The Board adopts a disciplined approach to M&A focussed on
complementary, earnings enhancing acquisitions to supplement
organic growth, whilst maintaining a conservative level of
leverage.
Business and financial review
Adjusted operating
Revenue profit Return on sales
------------------------- ------------------- ----------------------- -----------------------
Restated(1) Restated(1)
2022/23 2021/22 2022/23 2021/22 2022/23 2022/21
Six month period GBPm GBPm GBPm GBPm % %
Chain 89.2 76.6 11.7 9.2 13.1 12.0
Torque Transmission 21.5 20.6 1.4 1.8 6.5 8.7
Head office costs/
Inter segment sales
elimination (1.8) (1.9) (4.4) (3.8) - -
------------------------- --------- -------- --------- ------------ --------- ------------
Total Adjusted at
constant rates 108.9 95.3 8.7 7.2 8.0 7.5
Impact of foreign
exchange 7.4 - 0.9 -
------------------------- --------- -------- --------- ------------ --------- ------------
Total Adjusted at
actual rates 116.3 95.3 9.6 7.2 8.3 7.5
Adjusting items:
US PPP loan forgiveness - - - 1.7
Dilapidation costs
for closed sites - - - (0.2)
Amortisation of
acquired intangibles - - (0.2) -
Acquisition costs - - (0.6) -
------------------------- --------- -------- --------- ------------ --------- ------------
Statutory 116.3 95.3 8.8 8.7 7.6 9.1
------------------------- --------- -------- --------- ------------ --------- ------------
(1) See Note 12 for details of the prior period restatements
Chain
The Chain division's revenue at constant exchange rates
increased by 16.4% (GBP12.6m) to GBP89.2m.
Revenue increased across all regions:
-- Europe increased turnover 8.6% at constant currency rates.
Demand was robust driven by strong OEM and end user activity. The
integration of the YUK business is proceeding as planned with the
Group already starting to substitute externally sourced products,
sell increased CVC product throughout Europe, and increase TRC
sales in Spain.
-- The Americas increased constant currency revenues by 19.2%,
driven by the need to recover costs through pricing, new
aftermarket business in transmission chain and strong demand for
capital equipment in the food processing, ethanol and mining
industries.
-- Australasian revenues increased by 27.6% at constant exchange
rates, as the business continued to benefit from execution of its
growth strategy, targeting the move in Australia to more
domestically manufactured goods, continuing strong demand from the
Australian mining sector and notable increases in activity in both
Indonesia and Malaysia. A new machining centre was installed in the
Melbourne factory and progress was made in the development of
chains for the cement and coal industries.
-- India achieved first half constant currency revenue growth of
13.9% as activity levels recovered. An expansion of the domestic
dealer network and an increase in the number of local warehouses is
underway, to enhance geographic coverage and service.
-- Revenue in China was up 15.4% (at constant exchange rates) as
a result of higher demand from Europe and the USA. Significant
progress continues to be made in enhancing the performance of the
factory in Jintan. As a result of a programme of standardisation
and improvement projects, including the commissioning of new
equipment, the factory is increasingly able to manufacture higher
specification products.
Divisional adjusted operating profit at constant exchange rates
was GBP11.7m, GBP2.5m higher than the prior year. Return on sales
increased by 110bps to 13.1% (2021: 12.0%).
Order intake at constant exchange rates increased by 12.4% to
GBP93.7m, resulting in a book to bill (ratio of orders to sales)
for the first half of the year of 105.0% (2021: 108.7%).
Torque Transmission
Divisional revenues at constant exchange rates of GBP21.5m were
GBP0.9m higher than in the prior year. This was due to increased
demand for couplings in Australia and further recovery in North
America, along with increased activity in the Gears business.
However, timing of the long-term military contracts resulted in
some temporary reduction in revenue. Additionally, a number of key
customers with long term supply arrangements in Eastern Europe were
impacted by the war in Ukraine.
Divisional operating profit at constant currency reduced by
GBP0.4m to GBP1.4m due to the timing of the military contract, and
a weaker product mix between higher margin spare parts and lower
margin OEM business.
Momentum in this division is expected to improve in the second
half of the year, underpinned by an increase of 27.1% in order
intake compared to the prior year (at constant exchange rates),
excluding the benefit of the latest military contract.
Cash flow and net debt
Restated(1)
2022/23 2021/22
Half year to 30 September GBPm GBPm
------------------------------------------------ -------- ------------
Adjusted operating profit 9.6 7.2
Add back: Depreciation and amortisation 4.9 4.7
Share-based payments 0.5 0.5
------------------------------------------------ -------- ------------
Adjusted EBITDA 15.0 12.4
Movement in working capital (7.6) -
Net capital expenditure (2.2) (1.3)
Operating cash flow 5.2 11.1
Income taxes (1.3) (1.3)
Pensions cash costs (3.1) (2.4)
Repayment of principal under lease liabilities (1.2) (1.4)
Financing costs paid (1.3) (0.8)
Consideration paid for acquisition(2) (17.8) (0.3)
Own shares purchased - (1.8)
US PPP loan forgiveness - 1.7
Other movements (0.7) (0.3)
------------------------------------------------ -------- ------------
Change in net debt (20.2) 4.5
Closing net debt (34.0) (13.9)
------------------------------------------------ -------- ------------
(1) See Note 12 for details of the prior period restatements
(2) Includes GBP0.1m deferred consideration in relation to the
acquisition of the conveyor chain business of Brooks Ltd in the
prior year and GBP0.6m of acquisition costs for Industrias YUK,
S.A.
Net Debt increased during the period by GBP20.2m to GBP34.0m,
largely due to the acquisition of Industrias YUK, S.A. for cash
consideration of EUR20.0m in the period, along with associated
costs of GBP0.6m.
Working capital increased during the period. Inflation has
increased inventory value, though this was partly offset by a
corresponding increase in creditors. In addition, stocks of raw
materials and finished goods have been temporarily increased in
Germany in case energy supplies are disrupted this winter. A focus
on customer terms and collections has seen debtor days improve,
which largely offsets the effect of increased selling prices on
receivables.
Further inflationary pressures on materials, together with a
continuation of extended shipment times in supplying product
between operating sites, will result in the increased levels of
inventory being maintained in the second half year. This coupled
with higher input prices will result in modest further increases in
working capital.
Net capital expenditure was GBP2.2m representing an increase
over the prior half year, but remained below historic levels as
delays in the shipment of capital equipment continue. Strategic
investments in production capabilities, including improved heat
treatment and a roll-out of a standardised IT system continued and
are expected to gather pace during the second half of the year.
Corporation tax payments on account (GBP1.3m) were at normal
levels.
Cash financing costs increased in the half year, due both to the
additional borrowing resulting from the YUK acquisition, and the
increase in interest rates over the period. Further increases in
interest rates are expected within the second half of the year.
Pensions
The Group has a number of closed defined benefit pension schemes
(accounted for in accordance with IAS 19 'Employee Benefits').
During the pandemic, the Group negotiated a GBP2.8m one-off
deferment in contributions with the UK pension scheme trustees.
Contributions have now returned to normal levels, but in addition,
the first of five annual deferred payments of c.GBP0.6m was
made.
As a result of arrangements agreed with the UK pension scheme
trustees and approved by the Pension Regulator, pension cash costs
are known and stable, though increasing by RPI capped at 5%.
The Group's IAS 19 deficit decreased from GBP100.3m at 30
September 2021 to GBP61.3m at 30 September 2022.
At 30 September 2022 At 31 March 2022
Overseas Overseas
UK schemes schemes Total UK schemes schemes Total
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------------- ----------- --------- -------- ----------- --------- ----------
IAS 19 retirement benefit
obligations (41.2) (20.1) (61.3) (64.1) (23.0) (87.1)
Net deferred tax asset 2.3 2.4 4.7 7.8 3.2 11.0
-------------------------------- ----------- --------- -------- ----------- --------- ----------
Retirement benefit obligations
net of deferred tax asset (38.9) (17.7) (56.6) (56.3) (19.8) (76.1)
-------------------------------- ----------- --------- -------- ----------- --------- ----------
The yield on corporate bonds increased sharply during the
period. Consequently the discount rates used for the UK scheme rose
from 2.75% to 5.45%, and resulted in a net reduction in UK pension
liabilities of GBP22.9m. The long term expectation for CPI
inflation remained broadly stable at 3.20% (3.25% prior year).
Asset returns fell sharply during the period as both the value of
gilts and equities fell. The scheme has insurance assets linked
directly to the benefits of certain scheme members. As the
liability to these members reduces, for example with an increase in
discount rate, so does the value of the corresponding insurance
asset.
Pension liabilities in non-UK schemes reduced by GBP2.9m to
GBP20.1m, due in the main to an increase in discount rates.
The net financing expense (a non-cash item) was GBP1.0m (2021:
GBP0.9m).
Dividend
In line with recent policy based on enhancing Group performance
through focussed investment in new equipment and earnings enhancing
acquisitions the Board has decided not to declare an interim
dividend. The dividend policy will remain under review as margin
and cash flow performance continues to develop.
Summary
Demand in the first half was strong, showing a good recovery as
the worst effects of the pandemic receded. Whilst this performance
is expected to continue, supported by the record order book at the
period end, the widely reported challenging global market and
supply chain conditions are continuing, with significant
inflationary trends being experienced, particularly with respect to
materials, transport and energy costs. The Group is working to
mitigate these headwinds as far as possible and it enjoys
significant geographic, customer and sector diversity. With the
Group benefiting from the strategic initiatives previously
implemented, we are well placed for the future, with a robust
business that is well positioned for the coming period.
Going concern
The interim condensed consolidated financial statements have
been prepared on a going concern basis. In determining the
appropriate basis of preparation of the financial statements, the
Directors are required to consider whether the Group can continue
in operational existence for the foreseeable future.
The ongoing macro-economic uncertainty, together with the impact
of the war in Ukraine and the ongoing impact of Covid-19, alongside
the continued improvement in the half year trading performance of
the Group have been considered as part of the adoption of the going
concern basis. The Group continues to closely monitor operating
costs, and capital expenditure and other cash demands are being
managed carefully.
As part of its assessment, the Board has considered downside
scenarios that reflect the current uncertainty in the global
economy, including significant material and energy supply issues,
transport delays, and continuing inflationary pressures.
The Directors believe that the Group is well placed to manage
its business risks and, after making enquiries including a review
of forecasts and predictions, taking account of reasonably possible
changes in trading performances and considering the existing
banking facilities, including the available liquidity and covenant
structure, have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the 12
months following the date of approval of the interim financial
statements. Accordingly, they continue to adopt the going concern
basis in preparing the consolidated financial statements.
Risks and uncertainties
The Directors have reviewed the principal risks and
uncertainties of the Group. The Directors consider that the
principal risks and uncertainties of the Group published in the
Annual Report for the year ended 31 March 2022 remain appropriate.
The risks and associated mitigation processes can be found on pages
48-55 of the 2022 Annual Report, which is available at
www.renold.com.
The risks referred to and which could have a material impact on
the Group's performance for the remainder of the current financial
year relate to:
-- Macroeconomic and geopolitical volatility, including
potential energy supply disruption in Germany;
-- Strategy execution;
-- Corporate transactions / business development;
-- Health and safety in the workplace;
-- Security and effective deployment and utilisation of IT systems;
-- Prolonged loss of a major manufacturing site;
-- People and change;
-- Liquidity, foreign exchange and banking arrangements;
-- Pension deficit; and
Legal, financial and regulatory compliance.
Responsibility statement
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting;
-- the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
and their impact during the first six months of the financial year
and description of principal risks and uncertainties for the
remaining six months of the financial year); and
-- the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
The Directors of Renold plc are listed in the Annual Report for
the year ended 31 March 2022. A list of current Directors is
maintained on the Group website at www.renold.com.
By order of the Board
Robert Purcell Jim Haughey
Chief Executive Group Finance Director
16 November 2022 16 November 2022
Condensed consolidated income statement
for the six months ended 30 September 2022
Restated(2)
First half Full year
2021/22 2021/22
First (unaudited) (audited)
half 2022/23
(unaudited)
Note GBPm GBPm GBPm
-------------------------------------- ----- -------------- ------------- ------------
Revenue 3 116.3 95.3 195.2
Operating costs (107.5) (86.6) (179.0)
-------------------------------------- ----- -------------- ------------- ------------
Operating profit 8.8 8.7 16.2
-------------------------------------- ----- -------------- ------------- ------------
Net financing costs 4 (2.3) (2.0) (3.8)
-------------------------------------- ----- -------------- ------------- ------------
Profit before tax 6.5 6.7 12.4
Taxation 5 (1.7) (1.1) (2.2)
-------------------------------------- ----- -------------- ------------- ------------
Profit for the period 4.8 5.6 10.2
-------------------------------------- ----- -------------- ------------- ------------
Earnings per share 6
Basic 2.3p 2.6p 4.7p
Diluted 2.1p 2.4p 4.4p
Basic adjusted(1) earnings per share 2.7p 1.9p 4.3p
Diluted adjusted earnings per share 2.4p 1.8p 4.0p
-------------------------------------- ----- -------------- ------------- ------------
(1) Adjusted: In addition to statutory reporting, the Group
reports certain financial metrics on an adjusted basis. Definitions
of adjusted measures and information about the differences to
statutory metrics are provided in Note 11 to the financial
statements.
(2) See Note 12 for details of the prior period
restatements.
All results are from continuing operations
Condensed consolidated statement of comprehensive income
for the six months ended 30 September 2022
Restated(1)
First half Full year
2021/22 2021/22
First (unaudited) (audited)
half 2022/23
(unaudited)
GBPm GBPm GBPm
------------------------------------------- --- -------------- ------------- ------------
Profit for the period 4.8 5.6 10.2
Items that may be reclassified to
the income statement in subsequent
periods:
Exchange differences on translation
of foreign operations 9.3 1.1 3.2
Loss on hedges of the net investment
in foreign operations (1.2) (0.1) (0.3)
Cash flow hedges:
Fair value loss arising on cash flow
hedges during the period (1.4) (0.3) (0.5)
Less: Cumulative gain arising on cash
flow hedges reclassified
to profit and loss 0.7 0.1 0.1
Income tax relating to items that
may be reclassified subsequently to
profit or loss 0.2 0.1 0.1
------------------------------------------------ -------------- ------------- ------------
7.6 0.9 2.6
----------------------------------------------- -------------- ------------- ------------
Items not to be reclassified to the
income statement in subsequent periods:
Re-measurement gains on retirement
benefit obligations 24.7 1.0 12.3
Tax on re-measurement gains on retirement
benefit obligations - excluding impact
of statutory rate change (6.4) (2.1) (3.1)
Effect of changes in statutory tax
rate on deferred tax assets - 4.0 2.3
------------------------------------------------ -------------- ------------- ------------
18.3 2.9 11.5
----------------------------------------------- -------------- ------------- ------------
Other comprehensive income for the
period, net of tax 25.9 3.8 14.1
------------------------------------------------ -------------- ------------- ------------
Total comprehensive income for the
period, net of tax 30.7 9.4 24.3
------------------------------------------------ -------------- ------------- ------------
(1) See Note 12 for details of the prior period
restatements.
Condensed consolidated balance sheet
as at 30 September 2022
Restated(1) 31 March
30 September 30 September
2022 2021 2022
(unaudited) (unaudited) (audited)
Note GBPm GBPm GBPm
------------------------------------- ----- -------------- -------------- -----------
Assets
Non-current assets
Goodwill 30.0 22.2 22.7
Other intangible fixed assets 10.3 5.3 5.1
Property, plant and equipment 57.3 47.0 49.3
Right-of-use assets 17.6 10.8 8.0
Deferred tax assets 13.3 17.7 15.4
128.5 103.0 100.5
------------------------------------- ----- -------------- -------------- -----------
Current assets
Inventories 70.8 44.7 48.4
Trade and other receivables 43.5 37.8 35.7
Current tax 0.1 0.1 -
Derivative financial assets 0.1 - -
Cash and cash equivalents 8 15.7 11.5 10.5
------------------------------------- ----- -------------- -------------- -----------
130.2 94.1 94.6
------------------------------------- ----- -------------- -------------- -----------
Total assets 258.7 197.1 195.1
------------------------------------- ----- -------------- -------------- -----------
Liabilities
Current liabilities
Borrowings 8 (2.9) (0.1) (1.0)
Trade and other payables (63.7) (45.5) (48.5)
Lease liabilities (2.6) (2.2) (2.8)
Current tax (3.2) (2.9) (2.8)
Derivative financial liabilities (1.5) (0.3) (0.5)
Provisions - (0.2) (0.2)
------------------------------------- ----- -------------- -------------- -----------
(73.9) (51.2) (55.8)
------------------------------------- ----- -------------- -------------- -----------
Net current assets 56.3 42.9 38.8
------------------------------------- ----- -------------- -------------- -----------
Non-current liabilities
Borrowings 8 (46.3) (24.8) (22.8)
Preference stock 8 (0.5) (0.5) (0.5)
Trade and other payables (6.8) (5.7) (4.7)
Lease liabilities (18.8) (13.3) (9.2)
Deferred tax liabilities (10.1) (4.2) (5.4)
Retirement benefit obligations 7 (61.3) (100.3) (87.1)
Provisions (4.0) (3.7) (3.8)
(147.8) (152.5) (133.5)
------------------------------------- ----- -------------- -------------- -----------
Total liabilities (221.7) (203.7) (189.3)
------------------------------------- ----- -------------- -------------- -----------
Net assets/(liabilities) 37.0 (6.6) 5.8
------------------------------------- ----- -------------- -------------- -----------
Equity
Issued share capital 9 11.3 11.3 11.3
Currency translation reserve 18.1 7.9 9.8
Other reserves (6.1) (2.1) (5.4)
Retained earnings/(deficit) 13.7 (23.7) (9.9)
------------------------------------- ----- -------------- -------------- -----------
Total shareholders' funds/(deficit) 37.0 (6.6) 5.8
------------------------------------- ----- -------------- -------------- -----------
(1) See Note 12 for details of the prior period
restatements.
Condensed consolidated statement of changes in equity
for the six months ended 30 September 2022
Share Restated(1) Restated(1)
capital Share Retained Currency Capital Total
(Note premium earnings translation redemption Other shareholders'
9) account /(deficit) reserve reserve reserves funds/(deficit)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
At 1 April 2021 11.3 30.1 (78.2) 6.8 15.4 (0.1) (14.7)
Profit for the year - - 10.2 - - - 10.2
Other comprehensive
income/(expense) - - 11.5 3.0 - (0.4) 14.1
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
Total comprehensive
income/(expense)
for the year - - 21.7 3.0 - (0.4) 24.3
Own shares
purchased - - - - - (4.9) (4.9)
Capital
reorganisation - (30.1) 45.5 - (15.4) - -
Share-based
payments - - 1.1 - - - 1.1
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
At 31 March 2022 11.3 - (9.9) 9.8 - (5.4) 5.8
Profit for the
period - - 4.8 - - - 4.8
Other comprehensive
income/(expense) - - 18.3 8.3 - (0.7) 25.9
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
Total comprehensive
income/(expense)
for the period - - 23.1 8.3 - (0.7) 30.7
Share-based
payments - - 0.5 - - - 0.5
At 30 September
2022 11.3 - 13.7 18.1 - (6.1) 37.0
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
At 1 April 2021 11.3 30.1 (78.2) 6.8 15.4 (0.1) (14.7)
Profit for the
period - - 5.6 - - - 5.6
Other comprehensive
income/(expense) - - 2.9 1.1 - (0.2) 3.8
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
Total comprehensive
income/(expense)
for the period - - 8.5 1.1 - (0.2) 9.4
Own shares
purchased - - - - - (1.8) (1.8)
Capital
reorganisation - (30.1) 45.5 - (15.4) - -
Share-based
payments - - 0.5 - - - 0.5
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
At 30 September
2021 (Restated)(1) 11.3 - (23.7) 7.9 - (2.1) (6.6)
-------------------- --------- --------- ------------ ------------- ------------ ---------- -------------------
(1) See Note 12 for details of the prior period
restatements.
Included in retained earnings is GBP2.4m (31 March 2022:
GBP1.9m) relating to a share option reserve.
The other reserves are stated after deducting GBP4.9m (31 March
2022: GBP4.9m) relating to shares held in the Renold plc Employee
Benefit Trust. The Renold Employee Benefit Trust holds Renold plc
shares and satisfies awards made under various employee incentive
schemes.
At 30 September 2022 the Renold Employee Benefit Trust held
18,422,509 (31 March 2022: 18,422,509) ordinary shares of 5p each
and, following recommendations by the employer, are provisionally
allocated to satisfy awards under employee incentive schemes. At 30
September 2022 the market value of these shares was GBP4.2m (31
March 2022: GBP3.7m).
Condensed consolidated statement of cash flows
for the six months ended 30 September 2022
First
half First half
Full year
2022/23 2021/22 2021/22
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
------------------------------------------- -------------- ------------- -----------
Cash flows from operating activities
Cash generated by operations (Note
8) 3.7 10.1 21.0
Income taxes paid (1.3) (1.3) (1.7)
------------------------------------------- -------------- ------------- -----------
Net cash flows from operating activities 2.4 8.8 19.3
------------------------------------------- -------------- ------------- -----------
Cash flows from investing activities
Proceeds from property disposals 0.3 0.1 0.2
Purchase of property, plant and equipment (1.9) (0.8) (4.1)
Purchase of intangible assets (0.6) (0.6) (1.2)
Consideration paid for acquisitions (17.2) (0.3) (0.5)
------------------------------------------- -------------- ------------- -----------
Net cash flows from investing activities (19.4) (1.6) (5.6)
------------------------------------------- -------------- ------------- -----------
Cash flows from financing activities
Repayment of principal under lease
liabilities (1.2) (1.4) (4.2)
Financing costs paid (1.1) (0.8) (1.5)
Own shares purchased - (1.8) (4.9)
Proceeds from borrowings 23.3 - 4.7
Repayment of borrowings (1.2) (9.2) (16.0)
------------------------------------------- -------------- ------------- -----------
Net cash flows from financing activities 19.8 (13.2) (21.9)
------------------------------------------- -------------- ------------- -----------
Net increase/(decrease) in cash
and cash equivalents 2.8 (6.0) (8.2)
Net cash and cash equivalents at
beginning of period 9.5 17.3 17.3
Effects of exchange rate changes 0.5 (0.1) 0.4
------------------------------------------- -------------- ------------- -----------
Net cash and cash equivalents at
end of period 12.8 11.2 9.5
------------------------------------------- -------------- ------------- -----------
Notes to the interim condensed consolidated financial
statements
1. Corporate information
The interim condensed consolidated financial statements for the
six months ended 30 September 2022 were approved by the Board on 16
November 2022. These statements have not been audited or reviewed
by the Group's auditor pursuant to the Auditing Practices Board
guidance on the Review of Interim Financial Information.
Renold plc is a limited liability company, incorporated and
registered under the laws of England and Wales, whose shares are
publicly traded. The principal activities of the Company and its
subsidiaries are described in Note 3.
These interim condensed consolidated financial statements do not
constitute statutory accounts of the Group within the meaning of
Section 434 of the Companies Act 2006. The statutory accounts for
the year ended 31 March 2022 have been filed with the Registrar of
Companies. The auditor's report on those accounts was unqualified,
did not contain an emphasis of matter paragraph and did not contain
any statement under Section 498(2) or Section 498(3) of the
Companies Act 2006.
2. Accounting policies
Basis of preparation
The interim condensed consolidated financial statements for the
six months ended 30 September 2022 have been prepared in accordance
with the UK adopted International Accounting Standard 34, 'Interim
financial reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the UK's Financial Conduct Authority (FCA).
These condensed consolidated financial statements should be read
in conjunction with the consolidated financial statements for the
year ended 31 March 2022, which were prepared in accordance with
UK-adopted international accounting standards and with the
requirements of the Companies Act 2006 as applicable to companies
reporting under these standards.
The accounting policies, presentation and methods of computation
applied by the Group in these interim condensed consolidated
financial statements are the same as those applied in the Group's
latest audited annual consolidated financial statements for the
year ended 31 March 2022, except as noted below.
The excess of the consideration transferred, the amount of any
non-controlling interest and the acquisition date fair value of any
previously held equity interest in the acquired entity as compared
with the Group's share of the identifiable net assets are
recognised as goodwill. Where the Group's share of identifiable net
assets acquired exceeds the total consideration transferred, a gain
from a bargain purchase is recognised immediately in the income
statement after the fair values initially determined have been
reassessed.
New and revised accounting standards adopted by the Group
During the period, the International Accounting Standards Board
and International Financial Reporting Interpretations Committee
have issued the following standards, amendments and
interpretations, which are considered relevant to the Group. Their
adoption has not had any significant impact on the amounts or
disclosures reported in these financial statements.
-- Amendments to IAS 16 (Property, Plant and Equipment - Proceeds before Intended Use)
-- Annual Improvements to IFRS 2018-2020
-- Conceptual Framework (Amendments to References to the
Conceptual Framework in IFRS Standards)
-- Amendments to IAS 37 (Onerous contracts - Cost of fulfilling a contract)
New and revised accounting standards and interpretations which
were in issue but were not yet effective and have not been adopted
early by the Group
The IASB published a number of amendments to IFRSs, new
standards and interpretations which are not yet effective, and of
which some have been endorsed for use in the EU. An impact
assessment has been performed for each of these, with no
significant financial impact being identified for the consolidated
financial statements of the Group and the separate financial
statements of Renold plc. The amendments, new standards and
interpretations will be adopted in accordance with their effective
dates.
-- Applying IFRS 9 'Financial Instruments' with IFRS 4
'Insurance Contracts' (Amendments to IFRS 4)
-- Amendments to IAS 1 (Classification of Liabilities as Current or Non-Current)
-- IFRS 17 'Insurance Contracts'
-- Amendments to IAS 1 and IFRS Practice Statement 2 (Disclosure of accounting policies)
-- Amendments to IAS 12 (Deferred Tax related to Assets and
Liabilities arising from a single transaction)
-- Amendments to IAS 8 (Definition of Accounting Estimates)
-- Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
Significant accounting judgements, estimates and assumptions
In the course of preparing these interim condensed consolidated
financial statements, no judgements have been made in the process
of applying the Group's accounting policies that have had a
significant effect on the amounts recognised in the financial
statements, other than those involving estimation uncertainty. The
key sources of estimation uncertainty are those which applied in
the annual consolidated financial statements for the year ended 31
March 2022, namely:
-- Taxation
-- Retirement benefit obligations
-- Right-of-use assets
-- Inventory valuation
-- Impairment of non-financial assets
Financial risk management
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements for the year ended 31 March 2022.
3. Segmental information
For management purposes, the Group is organised into two
operating segments according to the nature of their products and
services and these are considered by the Directors to be the
reportable operating segments of Renold plc as shown below:
-- The Chain segment manufactures and sells power transmission
and conveyor chain and also includes sales of torque transmission
products through Chain National Sales Companies (NSCs); and
-- The Torque Transmission segment manufactures and sells torque
transmission products, such as gearboxes and couplings .
No operating segments have been aggregated to form the above
reportable segments.
The Chief Operating Decision Maker (CODM) for the purposes of
IFRS 8 'Operating Segments' is considered to be the Board of
Directors of Renold plc. Management monitor the results of the
separate reportable operating segments based on operating profit
and loss which is measured consistently with operating profit and
loss in the consolidated financial statements. The same segmental
basis applies to decisions about resource allocation. Disclosure
has not been included in respect of the operating assets of each
segment as they are not reported to the CODM on a regular basis.
However, Group net financing costs, retirement benefit obligations
and income taxes are managed on a Group basis and therefore are not
allocated to operating segments. Transfer prices between operating
segments are on an arm's length basis in a manner similar to
transactions with third parties.
The segment results for the period ended 30 September 2022 were
as follows:
Head
office
Torque costs(1)
Period ended 30 September Chain(2) Transmission and eliminations Consolidated
2022 GBPm GBPm GBPm GBPm
------------------------------------- --------- -------------- ------------------ -------------
Revenue
External customer - transferred
at a point in time 94.7 21.0 - 115.7
External customer - transferred
over time - 0.6 - 0.6
Inter-segment 0.4 1.4 (1.8) -
------------------------------------- --------- -------------- ------------------ -------------
Total revenue 95.1 23.0 (1.8) 116.3
------------------------------------- --------- -------------- ------------------ -------------
Operating profit/(loss) 12.3 1.5 (5.0) 8.8
Financing costs (2.3)
------------------------------------- --------- -------------- ------------------ -------------
Profit before tax 6.5
Taxation (1.7)
Profit after tax 4.8
------------------------------------- --------- -------------- ------------------ -------------
Other disclosures
Working capital 49.7 10.4 (9.5) 50.6
Capital expenditure 0.9 1.6 0.5 3.0
Total depreciation and amortisation 3.3 0.8 1.0 5.1
------------------------------------- --------- -------------- ------------------ -------------
(1) The head office operating loss includes non-recurring costs
of GBP0.6m relating to the acquisition of the YUK business.
(2) Chain operating profit includes costs of GBP0.2m relating to
amortisation of acquired intangibles.
The segment results for the period ended 30 September 2021 were
as follows:
Restated(1)
Head office
Restated(1) Torque costs Restated(1)
Period ended 30 September Chain Transmission and eliminations Consolidated
2021 GBPm GBPm GBPm GBPm
------------------------------------- ------------ -------------- ------------------ --------------
Revenue
External customer- transferred
at a point in time 76.2 18.3 - 94.5
External customer - transferred
over time - 0.8 - 0.8
Inter-segment 0.4 1.5 (1.9) -
------------------------------------- ------------ -------------- ------------------ --------------
Total revenue 76.6 20.6 (1.9) 95.3
------------------------------------- ------------ -------------- ------------------ --------------
Operating profit/(loss) 10.9 1.8 (4.0) 8.7
Net financing costs (2.0)
------------------------------------- ------------ -------------- ------------------ --------------
Profit before tax 6.7
Taxation (1.1)
Profit after tax 5.6
------------------------------------- ------------ -------------- ------------------ --------------
Other disclosures
Working capital 32.5 8.0 (3.5) 37.0
Capital expenditure 0.5 0.4 0.4 1.3
Total depreciation and amortisation 2.9 0.9 0.9 4.7
------------------------------------- ------------ -------------- ------------------ --------------
(1) See Note 12 for details of the prior period
restatements.
In addition to statutory reporting, the Group reports certain
financial metrics on an adjusted basis (alternative performance
measures, APMs). Definitions of adjusted measures, and information
about the differences to statutory metrics are provided in Note 11
to the interim condensed consolidated financial statements.
Constant exchange rate results are current period results
retranslated using prior year exchange rates. A reconciliation is
provided below and in Note 11.
Head office
Torque costs
Period ended 30 September Chain Transmission and eliminations Consolidated
2022 GBPm GBPm GBPm GBPm
--------------------------------- ------ -------------- ------------------ -------------
Revenue
External customer- transferred
at a point in time 94.7 21.0 - 115.7
External customer - transferred
over time - 0.6 - 0.6
Inter-segment 0.4 1.4 (1.8) -
Foreign exchange retranslation (5.9) (1.5) - (7.4)
--------------------------------- ------ -------------- ------------------ -------------
Total revenue at constant
exchange rates 89.2 21.5 (1.8) 108.9
--------------------------------- ------ -------------- ------------------ -------------
Operating profit/(loss) 12.3 1.5 (5.0) 8.8
Foreign exchange retranslation (0.8) (0.1) - (0.9)
--------------------------------- ------ -------------- ------------------ -------------
Operating profit/(loss)
at constant exchange rates 11.5 1.4 (5.0) 7.9
--------------------------------- ------ -------------- ------------------ -------------
The segment results for the year ended 31 March 2022 were as
follows:
Head office
Torque costs
Chain Transmission and eliminations Consolidated
Year ended 31 March 2022 GBPm GBPm GBPm GBPm
------------------------------------- ------ -------------- ------------------ -------------
Revenue
External customer - transferred
at a point in time 158.2 35.6 - 193.8
External customer - transferred
over time - 1.4 - 1.4
Inter-segment 1.0 3.4 (4.4) -
------------------------------------- ------ -------------- ------------------ -------------
Total revenue 159.2 40.4 (4.4) 195.2
------------------------------------- ------ -------------- ------------------ -------------
Operating profit/(loss) 20.5 4.1 (8.4) 16.2
Net financing costs (3.8)
------------------------------------- ------ -------------- ------------------ -------------
Profit before tax 12.4
Taxation (2.2)
Profit after tax 10.2
------------------------------------- ------ -------------- ------------------ -------------
Other disclosures
Working capital 30.0 9.0 (3.4) 35.6
Capital expenditure 3.4 2.0 0.9 6.3
Total depreciation and amortisation 6.2 1.9 1.4 9.5
------------------------------------- ------ -------------- ------------------ -------------
4. Net financing costs
First half Full year
2022/23 2021/22 2021/22
GBPm GBPm GBPm
--------------------------------------- -------- -------- ----------
Financing costs:
Interest payable on bank loans and
overdrafts (0.9) (0.6) (1.1)
Interest expense on lease liabilities (0.2) (0.2) (0.5)
Amortised financing costs (0.2) (0.2) (0.3)
Loan financing costs (1.3) (1.0) (1.9)
--------------------------------------- -------- -------- ----------
Net IAS 19 financing costs (1.0) (0.9) (1.8)
Discount unwind on non-current trade
and other payables - (0.1) (0.1)
Net financing costs (2.3) (2.0) (3.8)
--------------------------------------- -------- -------- ----------
5. Taxation
First half Full year
Restated(1)
2022/23 2021/22 2021/22
GBPm GBPm GBPm
----------------------------------- --------- ------------ ----------
Current tax:
- UK - - 0.1
- Overseas (1.5) (1.5) (2.1)
- Adjustments in respect of prior
periods 0.3 - -
----------------------------------- --------- ------------ ----------
Current income tax charge (1.2) (1.5) (2.0)
----------------------------------- --------- ------------ ----------
Deferred tax:
- UK - (0.2) (0.1)
- Overseas (0.5) (0.1) (0.1)
- Effects of changes in corporate
tax rates - 0.6 0.5
- Adjustments in respect of prior
periods - 0.1 (0.5)
Total deferred tax charge (0.5) 0.4 (0.2)
----------------------------------- --------- ------------ ----------
Total income tax expense (1.7) (1.1) (2.2)
----------------------------------- --------- ------------ ----------
(1) See Note 12 for details of the prior period
restatements.
Factors affecting current and future tax charges
The decrease in the current tax charge for the period is
attributable to the recognition of a receivable for the carry back
of tax losses against prior year taxable profits.
The UK tax rate change from 19% to 25% was substantively enacted
in the prior year, resulting in a credit to the income statement on
remeasurement of the opening deferred tax asset balance in the
prior period.
The Group's tax charge in future years will be affected by the
profit mix, effective tax rates in the different countries where
the Group operates, and utilisation of tax losses. No deferred tax
is recognised on the unremitted earnings of overseas subsidiaries
in accordance with IAS 12.39.
6. Earnings per share
Earnings per share (EPS) is calculated by reference to the
earnings for the period and the weighted average number of shares
in issue during the period as follows:
First half Full year
Restated(1)
2022/23 2021/22 2021/22
Per Per Per
share share share
Earnings amount Earnings amount Earnings amount
GBPm (pence) GBPm (pence) GBPm (pence)
------------------------------- --------- -------- --- --------- -------- --- --------- --------
Basic EPS - Profit attributed
to ordinary shareholders 4.8 2.3p 5.6 2.6p 10.2 4.7p
Effect of adjusting items,
after tax:
Amortisation of acquired
intangible assets 0.2 0.1p - - 0.1 0.1p
Acquisition costs 0.6 0.3p - - - -
US PPP loan forgiveness - - (1.7) (0.8p) (1.7) (0.8p)
Dilapidations on closed
sites - - 0.2 0.1p - -
New lease arrangements
on sublet properties - - - - 0.7 0.3p
Adjusted EPS 5.6 2.7p 4.1 1.9p 9.3 4.3p
------------------------------- --------- -------- --- --------- -------- --- --------- --------
(1) See Note 12 for details of the prior period
restatements.
First half Full year
2022/23 2021/22 2021/22
Thousands Thousands Thousands
------------------------------------------- ----------- ----------- -----------
Weighted average number of ordinary
shares:
For the purpose of calculating basic
earnings per share 206,995 219,458 214,795
Effect of dilutive potential ordinary
shares:
Shares subject to performance conditions 23,737 14,195 16,909
------------------------------------------- ----------- ----------- -----------
For the purpose of calculating diluted
earnings per share 230,732 233,653 231,704
------------------------------------------- ----------- ----------- -----------
First half Full year
2022/23 2021/22 2021/22
(pence) (pence) (pence)
---------------------- ---------- --------- ----------
Diluted EPS 2.1p 2.4p 4.4p
Diluted adjusted EPS 2.4p 1.8p 4.0p
---------------------- ---------- --------- ----------
The adjusted EPS numbers have been provided to give a useful
indication of underlying performance by the exclusion of adjusting
items. Due to the existence of unrecognised deferred tax assets
there were no associated tax credits on some of the adjusting items
and in these instances adjusting items are added back in full.
7. Retirement benefit obligations
The Group's retirement benefit obligations are summarised as
follows:
Restated(1)
At 30 At 30 At 31
September September March
2022 2021 2022
GBPm GBPm GBPm
-------------------------------------- ----------- ------------ --------
Funded plan obligations (160.7) (233.5) (214.4)
Funded plan assets 118.8 156.1 149.8
-------------------------------------- ----------- ------------ --------
Net funded plan obligations (41.9) (77.4) (64.6)
Unfunded obligations (19.4) (22.9) (22.5)
-------------------------------------- ----------- ------------ --------
Total retirement benefit obligations (61.3) (100.3) (87.1)
-------------------------------------- ----------- ------------ --------
Analysed as follows:
Non-current liabilities: Retirement
benefit obligations (61.3) (100.3) (87.1)
Net deferred tax asset 4.1 14.3 11.0
Retirement benefit obligation net
of deferred tax (57.2) (86.0) (76.1)
------------------------------------- ------- -------- -------
(1) See Note 12 for details of the prior period
restatements.
The decrease in the Group's net pre-tax deficit from GBP87.1m at
31 March 2022 to GBP61.3m at 30 September 2022 primarily reflects
changes in the underlying assumptions, such as the discount rate,
plus employer contributions made in the period.
8. Additional cash flow information
Reconciliation of operating profit to net cash flows from
operations:
First half Full year
Restated(1)
2022/23 2021/22 2021/22
GBPm GBPm GBPm
------------------------------------------ --------- ------------ ----------
Cash generated from operations:
Operating profit 8.8 8.7 16.2
Depreciation of property, plant and
equipment - owned assets 2.9 2.7 5.3
Depreciation of property, plant and
equipment - right-of-use-assets 1.2 1.4 2.6
Amortisation of intangible assets 1.0 0.6 1.6
Loss on disposals of plant and equipment - - (0.9)
Impairment of right-of-use-asset - - 1.7
US PPP loan forgiveness - (1.7) (1.7)
Equity share plans 0.5 0.5 1.1
Increase in inventories (10.9) (6.3) (9.5)
Increase in receivables (0.9) (7.1) (4.5)
Increase in payables 4.2 13.6 13.7
Increase in provisions - - 0.1
Cash contribution to pension schemes (3.1) (2.4) (4.8)
Pension current service cost (non-cash) - 0.1 0.1
Cash generated from operations 3.7 10.1 21.0
------------------------------------------ --------- ------------ --------------
(1) See Note 12 for details of the prior period
restatements.
Reconciliation of net change in cash and cash equivalents to
movement in net debt:
First half Full year
2022/23 2021/22 2021/22
GBPm GBPm GBPm
------------------------------------------ -------- -------- ----------
Increase/(decrease) in cash and cash
equivalents 2.8 (6.0) (8.2)
Change in net debt resulting from
cash flows
- Proceeds from borrowings (23.3) - (4.7)
- Repayment of borrowings 1.2 9.2 16.0
US PPP loan forgiveness - 1.7 1.7
Foreign currency translation differences (0.7) (0.2) 0.1
Non-cash movement on capitalised finance
costs (0.2) (0.2) (0.3)
Change in net debt during the period (20.2) 4.5 4.6
Net debt at start of period (13.8) (18.4) (18.4)
------------------------------------------ -------- -------- ----------
Net debt at end of period (34.0) (13.9) (13.8)
------------------------------------------ -------- -------- ----------
Net debt comprises:
At 30 At 30 September
September 2021 At 31 March
2022 GBPm 2022
GBPm GBPm
--------------------------- ----------- ---------------- --------------
Cash and cash equivalents 15.7 11.5 10.5
Total debt (49.7) (25.4) (24.3)
Net debt (34.0) (13.9) (13.8)
--------------------------- ----------- ---------------- --------------
At 30 At 30 September
September 2021 At 31 March
2022 2022
Net cash and cash equivalents GBPm GBPm GBPm
------------------------------- ----------- ---------------- --------------
Cash and cash equivalents 15.7 11.5 10.5
Less: Overdrafts (2.9) (0.3) (1.0)
Net cash and cash equivalents 12.8 11.2 9.5
------------------------------- ----------- ---------------- --------------
At 30 At 30 September
September 2021 At 31 March
2022 2022
Total debt GBPm GBPm GBPm
------------------------ ----------- ---------------- --------------
Borrowings:
Overdrafts (2.9) (0.3) (1.0)
Capitalised costs - 0.2 -
------------------------ ----------- ---------------- --------------
Current borrowings (2.9) (0.1) (1.0)
Bank Loans (46.3) (25.0) (22.8)
Capitalised costs - 0.2 -
------------------------ ----------- ---------------- --------------
Non-current borrowings (46.3) (24.8) (22.8)
------------------------ ----------- ---------------- --------------
Total borrowings (49.2) (24.9) (23.8)
Preference stock (0.5) (0.5) (0.5)
Total debt (49.7) (25.4) (24.3)
------------------------ ----------- ---------------- --------------
9. Called up share capital
At 30 At 30 At 31
September September March
2022 2021 2022
GBPm GBPm GBPm
------------------------------------- ----------- ----------- -------
Ordinary shares of 5p each - issued
and fully paid 11.3 11.3 11.3
------------------------------------- ----------- ----------- -------
At 30 September 2022, the issued ordinary share capital
comprised 225,417,740 ordinary shares of 5p each (30 September
2021: 225,417,740 shares).
10. Acquisition of businesses
During the period the Group completed the acquisition of 100% of
the ordinary share capital of Industrias YUK, S.A. for the total
consideration of EUR24m, of which EUR20m was paid on the date of
the acquisition and the remaining EUR4m is deferred. Of the
deferred consideration, EUR2m will be paid on 3 August 2023 and
EUR2m on 3 August 2024. YUK is a Valencia-based, manufacturer and
distributor of high quality conveyor chain ("CVC") and ancillary
products.
The transaction has been accounted for as a business combination
under IFRS 3 and is summarised below:
Provisional
as at 30
September
2022
GBPm
----------------------------------------- ------------
Fair value of net assets acquired:
Other intangible assets 5.4
Property, plant and equipment 5.3
Right-of-use-assets 9.5
Inventories 7.4
Trade and other receivables 4.4
Deferred tax asset 0.2
Trade and other payables (5.7)
Lease liabilities (9.5)
Net identifiable assets and liabilities 17.0
Goodwill 3.5
----------------------------------------- ------------
Total consideration 20.5
----------------------------------------- ------------
Consideration
Cash paid 17.1
Deferred consideration 3.4
----------------------------------------- ------------
Total consideration 20.5
----------------------------------------- ------------
Acquisition related costs amounted to GBP0.6m and have been
included in the condensed consolidated income statement.
The gross contractual value of the trade and other receivables
was GBP4.4m. The best estimate at the acquisition date of the
contractual cash flows not expected to be collected was GBPnil.
Deferred consideration of EUR4m is payable within 2 years.
The goodwill arising on acquisition is expected to be deductible
for tax purposes and is attributable to:
-- the anticipated profitability of the distribution of the
Group's services in new markets; and
-- the synergies that can be achieved in the business
combination including management, processes and maximising site
capacities.
The business was acquired on 3 August 2022 and contributed
GBP2.2m revenue and GBP0.2m headline operating profit for the
period between the date of acquisition and the balance sheet
date.
If the acquisition had been completed on the first day of the
financial period, the acquisition would have contributed GBP8.4m to
Group revenue, GBP1.2m to Group operating profit and GBP1.9m
adjusted operating profit (after adding back GBP0.1m for
amortisation of acquired intangibles and GBP0.6m acquisition
costs).
11. Alternative performance measures
In order to provide users of the accounts with a clear and
consistent presentation of the performance of the Group's ongoing
trading activity, the Group uses various alternative performance
measures (APMs). Amortisation of acquired intangibles,
restructuring costs, discontinued operations and material one-off
items or remeasurements are added back / (deducted) as adjusting
items as management seek to present a measure of performance which
is not impacted by material non-recurring items or items considered
non-operational. Performance measures for the Group's ongoing
trading activity are described as 'Adjusted' and are used to
measure and monitor performance as management believe these
measures enable users of the financial statements to better assess
the trading performance of the business. In addition, the Group
reports sales and profit measures at constant exchange rates.
Constant exchange rate metrics exclude the impact of foreign
exchange translation, by retranslating the current year results
using prior year exchange rates.
The APMs used by the Group include:
APM Reference Explanation of APM
----------------------------------- ---------- --------------------------------------
-- adjusted operating profit A Adjusted measures are used
by the Group as a measure
of underlying business performance,
adding back items that do
not relate to underlying performance
--------------------------------------
-- adjusted profit before taxation B
--------------------------------------
-- adjusted EPS C
-- return on sales D
-- operating profit gearing D
----------------------------------- ---------- --------------------------------------
-- revenue at constant exchange E Constant exchange rate metrics
rates adjust for constant foreign
exchange translation and are
used by the Group to better
understand year-on-year changes
in performance
--------------------------------------
-- adjusted operating profit F
at constant exchange rates
--------------------------------------
-- return on sales at constant G
exchange rates
----------------------------------- ---------- --------------------------------------
-- EBITDA H EBITDA is a widely utilised
measure of profitability,
adjusting to remove non-cash
depreciation, amortisation
charges and share-based payment
charge
--------------------------------------
-- adjusted EBITDA H
--------------------------------------
-- operating cash flow H
----------------------------------- ---------- --------------------------------------
-- net debt I Net debt, leverage and gearing
are used to assess the level
of borrowings within the Group
and are widely used in capital
markets analysis
--------------------------------------
-- leverage ratio J
--------------------------------------
-- gearing ratio K
----------------------------------- ---------- --------------------------------------
-- legacy pension cash costs L The cost of legacy pensions
is used by the Group as a
measure of the cash cost of
servicing legacy pension schemes
----------------------------------- ---------- --------------------------------------
-- average working capital ratio M Working capital as a ratio
of rolling 12 month revenue
is used to measure cash performance
and balance sheet strength
----------------------------------- ---------- --------------------------------------
APMs are defined and reconciled to the IFRS statutory measures
as follows:
(A) Adjusted operating profit
Period ended 30 September 2022
-----------------------------------------------------
Head office
Torque costs and
Chain Transmission eliminations Consolidated
GBPm GBPm GBPm GBPm
--------------------------------------- ------ -------------- -------------- -------------
Operating profit 12.3 1.5 (5.0) 8.8
Add back/(deduct):
Amortisation of acquired intangible
assets 0.2 - - 0.2
Acquisition costs - - 0.6 0.6
--------------------------------------- ------ -------------- -------------- -------------
Adjusted operating profit 12.5 1.5 (4.4) 9.6
--------------------------------------- ------ -------------- -------------- -------------
Period ended 30 September 2021 (Restated(1)
)
-----------------------------------------------------
Head office
Torque costs and
Chain Transmission eliminations Consolidated
GBPm GBPm GBPm GBPm
--------------------------------- ------ -------------- -------------- -------------
Operating profit 10.9 1.8 (4.0) 8.7
Add back/(deduct):
US PPP loan forgiveness (1.7) - - (1.7)
Dilapidation costs for closed
sites - - 0.2 0.2
--------------------------------- ------ -------------- -------------- -------------
Adjusted operating profit 9.2 1.8 (3.8) 7.2
--------------------------------- ------ -------------- -------------- -------------
(1) See Note 12 for details of the prior period
restatements.
Year ended 31 March 2022
-----------------------------------------------------
Head office
Torque costs and
Chain Transmission eliminations Consolidated
GBPm GBPm GBPm GBPm
--------------------------------------- ------ -------------- -------------- -------------
Operating profit 20.5 4.1 (8.4) 16.2
Add back/(deduct):
Amortisation of acquired intangible
assets 0.1 - - 0.1
US PPP loan forgiveness (1.7) - - (1.7)
New lease arrangements on sublet
properties - - 0.7 0.7
--------------------------------------- ------ -------------- -------------- -------------
Adjusted operating profit 18.9 4.1 (7.7) 15.3
--------------------------------------- ------ -------------- -------------- -------------
(B) Adjusted profit before taxation
First half Full year
Restated(1)
2022/23 2021/22 2021/22
GBPm GBPm GBPm
-------------------------------------- --------- ------------ ----------
Profit before taxation 6.5 6.7 12.4
Add back/(deduct):
Amortisation of acquired intangible
assets 0.2 - 0.1
US PPP loan forgiveness - (1.7) (1.7)
Acquisition costs 0.6 - -
Dilapidation costs for closed sites - 0.2 -
Property related costs - - 0.7
Adjusted profit before taxation 7.3 5.2 11.5
-------------------------------------- --------- ------------ ----------
(1) See Note 12 for details of the prior period
restatements.
(C) Adjusted earnings per share
Adjusted EPS is reconciled to statutory EPS in Note 6.
(D) Return on sales and operating profit gearing
Head
office
Torque costs
Chain Transmission and eliminations Consolidated
Period ended 30 September
2022 GBPm GBPm GBPm GBPm
--------------------------- ------ -------------- ------------------ -------------
Adjusted operating profit 12.5 1.5 (4.4) 9.6
Total revenue (including
inter-segment sales) 95.1 23.0 (1.8) 116.3
--------------------------- ------ -------------- ------------------ -------------
Return on sales % 13.1% 6.5% n/a 8.3%
--------------------------- ------ -------------- ------------------ -------------
Restated(1)
Head office
Restated(1) Torque costs Restated(1)
Chain Transmission and eliminations Consolidated
Period ended 30 September
2021 GBPm GBPm GBPm GBPm
--------------------------- ------------ -------------- ------------------ --------------
Adjusted operating profit 9.2 1.8 (3.8) 7.2
Total revenue (including
inter-segment sales) 76.6 20.6 (1.9) 95.3
--------------------------- ------------ -------------- ------------------ --------------
Return on sales % 12.0% 8.7% n/a 7.5%
--------------------------- ------------ -------------- ------------------ --------------
(1) See Note 12 for details of the prior period
restatements.
Head office
Torque costs
Chain Transmission and eliminations Consolidated
Year ended 31 March 2022 GBPm GBPm GBPm GBPm
--------------------------- ------ -------------- ------------------ -------------
Adjusted operating profit 18.9 4.1 (7.7) 15.3
Total revenue (including
inter-segment sales) 159.2 40.4 (4.4) 195.2
--------------------------- ------ -------------- ------------------ -------------
Return on sales % 11.9% 10.1% n/a 7.8%
--------------------------- ------ -------------- ------------------ -------------
Head
office
Torque costs
Chain Transmission and eliminations Consolidated
Period ended 30 September
2022 GBPm GBPm GBPm GBPm
----------------------------------- ------ -------------- ------------------ -------------
Year-on-year change in adjusted
operating profit 3.3 (0.3) (0.6) 2.4
Year-on-year change in total
revenue (including inter-segment
sales) 18.5 2.4 0.1 21.0
----------------------------------- ------ -------------- ------------------ -------------
Adjusted operating profit
gearing % 18% -13% n/a 11%
----------------------------------- ------ -------------- ------------------ -------------
(E),(F) & (G) Revenue, adjusted operating profit and
adjusted return on sales at constant exchange rates
Head
office
Torque costs
Chain Transmission and eliminations Consolidated
Six months ended 30 September
2022 GBPm GBPm GBPm GBPm
-------------------------------- ------ -------------- ------------------ -------------
External revenue - transferred
at a point in time 94.7 21.0 - 115.7
External revenue - transferred
over time - 0.6 0.6
Inter-segment 0.4 1.4 (1.8) -
Foreign exchange retranslation (5.9) (1.5) - (7.4)
-------------------------------- ------ -------------- ------------------ -------------
Revenue at constant exchange
rates 89.2 21.5 (1.8) 108.9
-------------------------------- ------ -------------- ------------------ -------------
Adjusted operating profit 12.5 1.5 (4.4) 9.6
Foreign exchange retranslation (0.8) (0.1) - (0.9)
-------------------------------- ------ -------------- ------------------ -------------
Adjusted operating profit
at constant exchange rates 11.7 1.4 (4.4) 8.7
-------------------------------- ------ -------------- ------------------ -------------
Return on sales at constant
exchange rates % 13.1% 6.5% n/a 8.0%
-------------------------------- ------ -------------- ------------------ -------------
(H) EBITDA, adjusted EBITDA (earnings before interest, taxation,
depreciation and amortisation) and operating cashflow
First half Full year
Restated(1)
2022/23 2021/22 2021/22
GBPm GBPm GBPm
------------------------------------------- --------- ------------ ----------
Operating profit 8.8 8.7 16.2
Depreciation and amortisation 5.1 4.7 9.5
Share-based payments 0.5 0.5 1.1
------------------------------------------- --------- ------------ ----------
EBITDA(2) 14.4 13.9 26.8
Add back/(deduct):
US PPP loan forgiveness - (1.7) (1.7)
Acquisition costs 0.6 - -
Dilapidation costs for closed properties - 0.2 -
Property related costs - - 0.7
------------------------------------------- --------- ------------ ----------
Adjusted EBITDA(2) 15.0 12.4 25.8
------------------------------------------- --------- ------------ ----------
Inventories (10.9) (6.3) (9.5)
Trade and other receivables (0.9) (7.1) (4.5)
Trade and other payables 4.2 13.6 13.7
Provisions - (0.2) 0.1
------------------------------------------- --------- ------------ ----------
Movement in working capital (7.6) - (0.2)
------------------------------------------- --------- ------------ ----------
Purchase of property, plant and equipment (1.9) (0.8) (4.1)
Purchase of intangible assets (0.6) (0.6) (1.2)
Proceeds from property disposals 0.3 0.1 0.2
------------------------------------------- --------- ------------ ----------
Net capital expenditure (2.2) (1.3) (5.1)
------------------------------------------- --------- ------------ ----------
Operating cash flow 5.2 11.1 20.5
------------------------------------------- --------- ------------ ----------
(1) See Note 12 for details of the prior period
restatements.
(2) The calculation of EBITDA, adjusted EBITDA and operating
cash flow includes the add back for the non-cash share-based
payment charge of GBP0.5m for the period ended 30 September 2022
(2021: GBP0.5m).
(I) Net debt
Net debt is reconciled to the statutory balance sheet in Note
8.
(J) Leverage ratio
At 30 At 30 At 31
September September March
2022 2021 2022
GBPm GBPm GBPm
----------------------------------- ----------- ----------- ----------
Net debt (see Note 8) 34.0 13.9 13.8
H2 2020/21 Adjusted EBITDA - 10.4 -
H1 2021/22 Adjusted EBITDA - 12.4 12.4
H2 2021/22 Adjusted EBITDA 13.4 - 13.4
H1 2022/23 Adjusted EBITDA 15.0 - -
----------------------------------- ----------- ----------- ----------
12 months rolling adjusted EBITDA 28.4 22.8 25.8
----------------------------------- ----------- ----------- ----------
Leverage ratio 1.2 times 0.6 times 0.5 times
----------------------------------- ----------- ----------- ----------
(K) Gearing ratio
Restated(1)
At 30 At 30 At 31
September September March
2022 2021 2022
GBPm GBPm GBPm
--------------------------------------- ----------- ------------ -------
Net debt (see Note 8) 34.0 13.9 13.8
Equity attributable to equity holders
of the parent 37.0 (6.6) 5.8
Net debt (see Note 8) 34.0 13.9 13.8
--------------------------------------- ----------- ------------ -------
Total capital plus net debt 71.0 7.3 19.6
--------------------------------------- ----------- ------------ -------
Gearing ratio % 48% 190% 70%
--------------------------------------- ----------- ------------ -------
(1) See Note 12 for details of the prior period restatement.
(L) Legacy pension cash costs
First half Full year
2022/23 2021/22 2021/22
GBPm GBPm GBPm
----------------------------------------- -------- -------- ----------
Cash contributions to pension schemes 2.5 1.8 3.7
Pension payments in respect of unfunded
schemes 0.6 0.6 1.1
Scheme administration costs 0.4 0.3 0.7
----------------------------------------- -------- -------- ----------
3.5 2.7 5.5
----------------------------------------- -------- -------- ----------
( M) Average working capital ratio
First half Full year
2022/23 2021/22 2021/22
GBPm GBPm GBPm
----------------------------------------- -------- -------- ----------
Inventories 70.8 44.7 48.4
Trade and other receivables 43.5 37.8 35.7
Trade and other payables (63.7) (45.5) (48.5)
----------------------------------------- -------- -------- ----------
Total working capital 50.6 37.0 35.6
Average working capital(1) (a) 43.8 38.9 36.1
12 months rolling revenue (b) 216.2 179.1 195.2
Average working capital ratio ((a)/(b)) 20% 22% 18%
----------------------------------------- -------- -------- ----------
(1) Calculated as a simple average of the previous 12 months'
working capital.
12. Prior period adjustments
The Group has changed its accounting policy related to the
capitalisation of certain software costs, this change follows the
IFRIC Interpretation Committee's agenda decision published in April
2021, which clarifies the accounting treatment of the costs of
configuring or customising software under software as a service
(SaaS) arrangements. Previously capitalised SaaS costs have now
been written off at the point they were originally incurred, and
the related subsequent amortisation of these costs in the prior
year has now been reversed and added back to profit.
In addition, prior period adjustments have been recorded
relating to the following:
- Dilapidations provision - The prior period adjustment records
an increased dilapidations provision for certain leased properties
across the Group. The adjustment arose following changes to
sublease arrangements on previously closed sites which prompted a
global review of dilapidations across the Group's property
portfolio. The adjustment includes the reclassification of GBP0.6m
of dilapidations provision that had been incorrectly netted against
the opening right-of-use asset cost on adoption of IFRS 16.
Dilapidation provisions have been increased; with property, plant
and equipment increased to the extent the group has incurred
capital cost to modify lease properties alongside a corresponding
obligation to remove the modification and restore the property on
surrender of the lease. The adjustment to the income statement
reflects the extent to which dilapidations were charged in the
period to 30 September 2021, but related to obligations which arose
in previous financial periods.
- Deferred taxation - The prior period adjustment reduces the
value of the deferred tax asset (DTA) recognised in respect of UK
pensions (reduction of GBP8.4m at 30 September 2021) and increases
the value of deferred tax recognised in respect of UK losses
(increase of GBP0.8m at 30 September 2021). The adjustment to the
pensions DTA arose in respect of a deemed contribution of GBP40m
that was made to the UK pension scheme in 2014. The contribution
formed part of the Group's 25-year asset-backed partnership
structure (the Scottish Limited Partnership, 'SLP'). At the
inception of the partnership structure the GBP40m contribution was
recorded as an allowable deduction in the tax computations of the
Group's UK subsidiaries. This upfront tax deduction reduces the
future tax deductions that are available over the remainder of the
25-year agreement. The gross pension DTA has historically been
assumed to equal the IAS 19 deficit for the UK scheme, multiplied
by the future expected tax rate, however, due to the upfront
deduction taken at the inception of the scheme the UK pension DTA
has been reduced to cap the implied future available deductions at
each balance sheet date. The reduction in the UK pensions DTA
resulted in the recognition of a DTA for UK losses. Previously no
forecast UK taxable profits were available for loss recognition due
to the assumption that the annual deductions expected on the
pension contributions would be significantly higher than those now
calculated as part of this review. Consequently, due to the lower
level of allowable pension deductions expected each year in the
forecast period used to assess taxable profits available for loss
recognition, headroom now remains and accordingly a DTA for losses
has been recognised at 30 September 2021.
The impact, on a line item basis for those affected, on the
Condensed consolidated statement of comprehensive income for the
period ended 30 September 2021 and the Condensed consolidated
balance sheet as at 30 September 2021 is as follows:
Condensed consolidated statement
of comprehensive income for Change First
the period ended 30 September As previously Dilapidations Deferred in accounting half 2021/22
2021 reported provision taxation policy (restated)
GBPm GBPm GBPm GBPm GBPm
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Revenue 95.3 - - - 95.3
Operating costs (87.1) 0.3 - 0.2 (86.6)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Operating profit 8.2 0.3 - 0.2 8.7
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Profit before tax 6.2 0.3 - 0.2 6.7
Taxation (1.2) - 0.1 - (1.1)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Profit for the financial year 5.0 0.3 0.1 0.2 5.6
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Tax on remeasurement gains/losses
on retirement benefit obligations (0.2) - (1.9) - (2.1)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Other comprehensive income/(expense)
for the year, net of tax 5.7 - (1.9) - 3.8
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Total comprehensive income/(expense)
for the year, net of tax 10.7 0.3 (1.8) 0.2 9.4
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Earnings per share
Basic earnings per share 2.3p 0.2p - 0.1p 2.6p
Diluted earnings per share 2.1p 0.2p - 0.1p 2.4p
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Condensed consolidated balance Change
sheet As previously Dilapidations Deferred in accounting 30 September
as at 30 September 2021 reported provision taxation policy 2021 (restated)
GBPm GBPm GBPm GBPm GBPm
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
ASSETS
Non-current assets
Property, plant and equipment 46.7 0.3 - - 47.0
Other intangible fixed assets 6.3 - - (1.0) 5.3
Deferred tax assets 25.3 - (7.6) - 17.7
Other non-current assets 33.0 - - - 33.0
111.3 0.3 (7.6) (1.0) 103.0
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
TOTAL ASSETS 205.4 0.3 (7.6) (1.0) 197.1
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
LIABILITIES
Non-current liabilities
Provisions (2.1) (1.6) - - (3.7)
Other non-current liabilities (148.8) - - - (148.8)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
(150.9) (1.6) - - (152.5)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
TOTAL LIABILITIES (202.1) (1.6) - - (203.7)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
NET LIABILITIES 3.3 (1.3) (7.6) (1.0) (6.6)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
EQUITY
Other equity items 17.1 - - - 17.1
Retained earnings (13.8) (1.3) (7.6) (1.0) (23.7)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
TOTAL SHAREHOLDERS' EQUITY 3.3 (1.3) (7.6) (1.0) (6.6)
-------------------------------------- -------------- -------------- ---------- --------------- -----------------
Ends
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