Renold PLC - Manchester, England-based company which supplies industrial chains and related power-transmission products - Says financial performance in the first five months of the financial year was in line with its expectations. Group revenue was £102.3 million compared to £104.7 million a year before. Order intake was £105.5 million, up 14% from £92.6 million. ‘Global markets continue to be uncertain, with activity levels in both mainland Europe and China recovering more slowly than initially anticipated. However, material and labour inflation is now reducing and the group retains a strong order book which remains high by historical standards,’ company says. Renold adds that good trading coupled with the strong order book ‘underpins management’s confidence in the outturn for the year’. Further, buys MAC Chain Company Ltd (US) and MAC Chain Company Ltd (Canada) for $31.4 million cash. The acquisition is expected to immediately enhance adjusted earnings per share, as well as be accretive to operating margin. Return on invested capital is expected to be above Renold’s weighted average cost of capital in the first year of ownership.

Current stock price: 58.40 pence

12-month change: up 91%

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