Renold, the manufacturer of industrial chains, has announced that its revenue for the first four months of the new fiscal year has increased by 17%. This positive momentum has led the company to raise its full-year expectations.
According to the company’s financial report, the revenue for the four-month period ending on July 31 amounted to £85.1 million ($107.5 million).
Although the order book as of the same date stood at £86.0 million, which is higher than historic levels, it represents a 14% decrease compared to the record position held at the end of fiscal 2023. Renold attributes this decrease to a normalization of order intake following improvements in global supply chains and delivery times. As customers gained more certainty in deliveries, they were able to reduce their forward order placement.
Renold acknowledges that global markets continue to be uncertain, with labor cost inflation and material costs remaining high compared to historical levels. However, the company remains optimistic due to its strong order books, continued positive business momentum, and an increase in activity resulting from its recent acquisition of Davidson. As a result, Renold expects its results for fiscal 2024 to exceed previous expectations, although specific figures were not provided.
Renold’s impressive 17% increase in revenue for the first four months of the new fiscal year is a testament to its strong performance. With a positive business momentum and recent acquisition driving increased activity, the company is confident that it will surpass previous expectations for fiscal 2024. Despite ongoing uncertainties in global markets, Renold’s sustained growth is a promising sign for its future prospects.